Proof of Concept Study for Automated Settlement of P2P Electricity Trading Using Blockchain Technology

Promotion of Digital Currency for the Electricity Industry

DeCurret Inc. (Head Office: Chiyoda-ku, Tokyo; President & CEO: Kazuhiro Tokita, hereinafter “DeCurret”) is pleased to announce the successful completion of a joint proof of concept study with Kansai Electric Power Co., Inc. (hereinafter “KEPCO”) using digital currency in March 2020.

The study confirmed the effectiveness of automated settlement of P2P electricity trades^*1 using unique digital currency issued for the KEPCO project on a blockchain platform for issuance and management of digital currency built by DeCurret.

DeCurret will continue to promote the use of digital currency by the electricity industry using technologies including digital currencies and smart contracts.

1. Background

The power supply system in the electricity industry is in the process of migrating from the conventional large and concentrated model to a diversified model involving individuals and corporate ownership of power sources. We believe direct trading (P2P trading) between electricity prosumers^*2 and consumers using a designated platform will become reality in the future. This requires transparent tracking of P2P electricity trading, and application of blockchain technology for tracking has already been reviewed in Japan and overseas considering its high transparency and resistance to manipulation.

Accordingly, DeCurret conducted a proof of concept study on the use of digital currency for automated settlement process which occurs simultaneously with the P2P trading between the power prosumers and consumers.

2. Outline of the proof of concept study

• Digital currency is issued by using a platform that issues and manages currency on a blockchain created by DeCurret. (Digital currency is valid for a period within six months.)

• The study confirmed the effectiveness of the structure where entry of the record of the electricity trade between power prosumer and consumer in the smart contract triggers transfer of the amount corresponding to the volume of traded electricity from the power consumer’s wallet to the prosumer’s wallet, and the trading fee is immediately transferred from the prosumer’s wallet to the platformer’s wallet in digital currency.

＜Proof of concept study diagram＞

■  Characteristics of DeCurret’s digital currency platform

The platform that issues and manages digital currencies on a blockchain, created by DeCurret, has a function that allows a user company to issue a digital currency under its own brand, and can implement processes using smart contracts. The platform also executes a series of transactional processes more efficiently to enable real-time exchange of money, even in small sums.

This way, it supports the offering of a wide range of services, including dynamic pricing and real-time settlement, which utilize the blockchain’s features.

DeCurret aims to commercialize this platform going forward and is planning to offer more services that enhance the convenience of digital currencies, including value transfer and exchange functions and services that make them compatible with existing settlement services.

※1: Peer to Peer. A structure where individual devices (peers) communicate directly without going through the central server.

※2: Coined word combining “producer” and “consumer,” referring to a party that produces power for own consumption and sells the surplus.

【DeCurret】Proof-of-Concept-Study-for-Automated-Settlement-of-P2P-Electricity-Trading-Using-Blockchain-Technology.pdf