Researchers Build Blockchain Electricity Exchange They Say Cuts Waste

A team from one of the top universities in China has developed a decentralized exchange, not for crypto assets, but for unused electricity.

AccessTimeIconAug 6, 2018 at 11:30 a.m. UTC
Updated Sep 13, 2021 at 8:15 a.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Researchers from one of the top universities in China say they have developed a decentralized exchange, not for crypto assets, but for unused power

A patent application filed by team from China's Fudan University in January and revealed on Friday sets out the workings of a blockchain-based electricity exchange that assigns power sellers and buyers as nodes on the network and allows them to securely trade unused electricity without a third-party intermediary.

Using the network, nodes can broadcast requests for sales or purchases, after which smart contracts will connect matching requests, based on data such as volume and price, and then trigger transactions – a mechanism similar to that of a decentralized crypto exchange.

The effort is a response to the growing supply of renewable energy in China, especially solar power generated by households, which is often generated in excess of demand in some regions.

The researchers write:

"Households then have no other choices but to let the unused solar power go to waste because they don't have a direct way of exchanging electricity."

To facilitate transactions over the decentralized network, a digital currency would be used between buyers and sellers, the patent application explained.

Although it's not clear which digital asset(s) the platform might use, the system has so far been made to built on two blockchain systems, according to the Fudan team.

"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 document states.

Read the full patent application below:

Solar panels image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.