One of the core subsidiaries of Mitsubishi, the Mitsubishi Electric, announced on Monday the creation of a new blockchain-based system equipped for energy trading. The blockchain development results from the collaboration with one of Japan’s largest research universities, Tokyo Tech. Mitsubishi Electric intends to control excess energy application through the network whilst promoting efficient peer-to-peer (P2P) trading.
Mitsubishi has its headquarters in Tokyo. It deals with the production of electronics and other electrical equipment. Following the announcement, the electronics company will manage the trading platform’s design. It also involves the clearing feature. Simultaneously, Tokyo Tech is responsible for combining the blockchain technology into the trading system and developing an effective clearing algorithm.
The New Energy Trading System ensures optimal usage of electricity
Further, the energy trading system aims to ensure optimal electricity usage, particularly from renewable energy. According to the reports, the energy trading system would be reevaluated in April. It will determine performance and also enhance the algorithm if required, as they prepare to commercialize it. The development further emphasizes the application of blockchain. The technology is demonstrating to be beneficial in P2P energy trading.
Earlier, Siemens was producing a blockchain-based electricity trading platform in Germany. The platform will perform more like a marketplace for energy producers to trade excess electricity to customers without adopting the national grid operators or intermediary. Known as Pebbles, the blockchain electricity trading platform, is recently in the demo phase. The blockchain platform will streamline the local energy market operations and electricity trading in Wildpoldsried, a region in the Bavarian Allgäu. Pebbles’ blockchain electricity trading platform also obtained financial support from the German Federal Ministry for Economic Affairs and Energy.
Blockchain technology will boost transparency and trust amongst the users. In a separate report, the California Energy Commission committed about $9 million in August to develop a blockchain system that will significantly decrease carbon footprint. The system was reportedly built on the BTC-based blockchain and will concentrate on renewable energy sources.
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