China’s Top University Has Developed a Decentralized Network to Trade Energy

China’s Top University Has Developed a Decentralized Network to Trade Energy

Researchers from one of the major universities in China reportedly have built up a decentralized exchange, not for crypto assets but rather for unused power.

Enabling Users to Trade Energy

In January, a group from China's Fudan University has filed a patent application, which was released last Friday, August 3. The document introduces the workings of an electricity exchange based on blockchain, that will assign power sellers and purchasers as nodes on the network and enable them to safely trade unused power without middlemen.

Within the system, nodes will be broadcasting demands for sales or purchases, and smart contracts will match requests in accordance with volume and cost. Afterward, transactions will be triggered on a scheme similar to that of a decentralized crypto exchange.

The supply of renewable energy, including solar power, is growing in the country, and frequently households generate electricity in excess of demand. This effort is an optimal solution to stop wasting unused energy and make it beneficial.

What Is It Built On

In order to facilitate transactions, the decentralized system would use cryptocurrency, as states the application. It is still unclear which digital currency will the platform use, yet we know that it has been built on 2 blockchain systems.

"This idea can be achieved in either a public, private or a consortium blockchain. And in this case, the system has been developed on IBM's Hyperledger platform as well as the ethereum blockchain, to make electricity tradeable and shareable within a community," the filing states.

 

#blockchain #china #cryptocurrency #power