Mitsubishi Electric Partners With Tokyo Tech To Design A Blockchain-Based Trading System
Mitsubishi Electric Partners With Tokyo Tech To Design A Blockchain-Based Trading System
January 19, 2021
Mitsubishi Electric Partners With Tokyo Tech To Design A Blockchain-Based Trading System
Mitsubishi Electric Partners With Tokyo Tech To Design A Blockchain-Based Trading System
January 19, 2021

Mitsubishi Electric, the electronics giant, has partnered with the prestigious Japanese university Tokyo Tech to design a blockchain-based trading system that can support more flexible, peer-to-peer energy trading.

It has been reported that the new system is intended to support the efficient use of surplus electricity that is generated from renewable energy sources.   

However, it is hoped that the trading system can ensure that at any given moment, there will be the maximum available amount of surplus electricity accessible on the market for consumers. 

The report said that peer-to-peer energy trading set-ups allow consumers and prosumers to engage in direct trading as buyers and sellers. To make their new system less reliant on hardware-intensive, high-volume computations, Mitsubishi Electric and Tokyo Tech have customized their blockchain system in order to optimize matches and make clearing buy and sell orders more efficient. 

Also, the report stated that a distributed-optimization algorithm, which differs from most blockchain technologies, enables customer computers to share their trading goals and data and then to “optimally match buy and sell orders using minimal computations.”

ALSO READ :  Bitcoin Price Topped $40,000, Its ATH Hit Higher Than 20 Ounce Gold Bar

Mitsubishi and Tokyo Tech call their “new mining method” that can be executed on a micro-computing server.

According to the report, the four steps involved in the method are as follows:

“In the first step, information on buy and sell orders with a common trading goal (market surplus, profit, etc.) are shared by computing servers during a predetermined timeframe. Second, each server searches for buy and sell orders matched to the common goal in the first step. Third, each server shares its search results. In the fourth and final step, each server receives the search results and generates a new block by selecting trades that best meet the shared goal, which it adds to each blockchain.”

Likewise, to ensure trading is fair, the search for the solution for each shared goal occurs in a decentralized manner, i.e., in parallel on multiple computers, where equivalent matches are selected at random. The flexibility of the system ensures that buyers and sellers can make trades above or below bid prices if the right match is found. Those who fail to make a trade can also change the terms of their subsequent offer on the basis of assessing the previous offer/bid conditions. 

ALSO READ :  SK Securities joins real estate blockchain

It has been analyzed that Mitsubishi and Tokyo Tech anticipate that by ensuring the maximum amount of surplus electricity is available for trading on the market, the cost of sustainable consumer goods such as electric vehicles will drop accordingly.

By proposing a peer-to-peer solution, the onus will no longer be on retail power firms to respond to market fluctuations.

Thus, Mitsubishi and Tokyo Tech have announced that after evaluations of the system’s operations beginning in April, their aim is to commercialize the product as quickly as possible.

Source: Cointelegraph


Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.