The third largest supplier of electricity in Japan became one of the first large companies in the world to test promising payment technology in Bitcoins.
Chubu Electric Power Co has begun the work on a proof-of-concept with Nayuta startup, a Bitcoin and Internet stuff developer (IoT), which examines payments through the Lightning Network, a protocol under development that promises to speed up payments and reduce costs for Bitcoin users many times. Chubu uses Lightning Network to develop a prototype of a new way for customers to pay for electric car charging.
Chubu Electric Power's CEO Hidehiro Ichikawa noted that testing is part of the company's "marketing research" on how bitcoin can meet its IoT needs. However, he noted that Chubu has no formal plans yet, to launch Lightning payments from their customers.
Nayuta Startup President, Kenichi Kurimoto, believes that this pilot project demonstrates the company's interest in using Bitcoin to make IoT payments using Lightning Network in a cost-effective way.
«For IoT and blockchain applications, real-time payments are required. We have shown here that second-tier payments can be a suitable solution», - he said.
How does it work ?
To demonstrate how Lightning can work for the IoT, two companies connected the Lightning node to an electronic charger and then attached it to the machine. Start-up Infoteria has been also involved in the process, engaged in the development of software, which created the code of the test mobile application for the end users. After clicking the "Send" button, the application communicates with the charger via Wi-Fi or Bluetooth, which transmits the message and turns on the charging.
In the test, no real Bitcoin was used, instead, the test Bitcoin has been sent to a closed network under company control. The tests were successful, proving that Lightning can actually make small instant payments for charging an electric vehicle. Nayuta spokesman, Hitomi Moriyama, said that such a system can be installed once in ordinary parking lots.
Users will be able to easily pay for charging the car with Bitcoins via the Lightning network, similar to how it is now paid for by credit cards. Representatives of the companies mentioned that the technology is at the stage of testing and development and is not planned for implementation in the near future.