German researchers have created a microchip that shows promise to restore limited sight for some forms of inherited blindness. The device contains 1,540 photodiodes (similar to pixels in a camera) that connect directly to the optic nerve to provide some sight.
The technology still has a long way to go - the resolution is approximately 100,000 times worse than normal eyesight (and 300 times worse than a poor cell phone camera), but it's still a big step towards restoring sight and interfacing with other nerve cells.
Link [Economist] - or see our earlier story on an upcoming bionic eye.