Blockchain Energy Platform Backed By Oil Industry – There is a new support team for the blockchain based energy platform; a team that consists of some big players of the Oil industry as well as some large banks and financial institutions.
Who are the biggies involved?
There are biggies like Shell, BP, and Equinor that are involved in this ambitious blockchain project which is believed to modernize the energy post-trade process.
The announcement was made at the S&P Global Platts Digital Commodities Summit in London by the Vakt Consortium.
Speaking of the development, Lyon Hardgrave, Vice President at Vakt product development said “We expect to go live at the end of November in the North Sea oil market,” before adding “In 2019 we will look at ARA barges, waterborne markets, and US crude pipelines. And by January we expect the first licensees will come on board, in addition to our shareholders”.
Licensees paying to use the platform in the future can look forward to efficiency cost savings of around 40% in post-trade resolution, Hardgrave said, with data errors eliminated and processes accelerated, freeing up time and capital.
“This is not a trading platform, nor a settlement platform – there is no cryptocurrency involved. But it is everything in between: deal recap; confirmation; contract; logistics (the really big element in all this) and invoicing,” he said.
Digitizing the oil trade
Blockchain Energy Platform Backed By Oil Industry – The platform aims to digitize the oil trade by reducing paper usage and implementing more digital contracts and smart contracts. Though the Distributed Ledger Technology will be used to initially record the transactions. More improvised technologies can be utilized in the future and there are plans of expanding into that domain.
Up to now, this entire year has not been that great for digital currencies. But that has not affected the adoption of blockchain technology into many industries. Significantly large industries entering the blockchain world. It is evident that the future of blockchain is definitely big. Because the smaller industries usually follow the larger one’s path in order to sustain themselves.
David Shrier of Oxford University’s Business School said he expected digitization of entire commodity trade ecosystems within seven to 10 years. But warned that consistent regulation of the sector would take “10 years or never”.