Blockchain technology makes a debut in the domain of physical oil trade and related finance sector with the novel digital platform. This is entirely based on the crude oil trading which will be managed via this emerging technology. Indeed, the energy sector is having a keen interest in joining this new technological bandwagon which has already made its presence felt in almost all the industries.
The new digital platform is supported by major energy suppliers of the world market such as Reliance Industries, Chevron, and Total. They are said to have officially joined the blockchain consortium of investors dubbed as Vakt which includes big names like Equinor, BP, Gunvor, Mercuria, Koch Supply & Trading, and Royal Dutch Shell.
Vakt is the first ever blockchain technology trading platform specifically physical oil trade. This platform has made a lot of things simpler, faster, secure and cheaper in the commodities trade. Going by the conventional process of physical commodities trading there is a requirement of ample of things such as invoices, letters of credit, quite a lot of other formality documents and inspection certificates which are being across the world through fax, post, and emails. Vakt has made it quite a lot easy by enabling real-time blockchain approach as mentioned by Financial Times.
Chevron President supply and trade, Colin Parfitt mentioned that they have joined this consortium with the aim of being in-line with the upgrades in technology and taking the energy industry forward in the blockchain ecosystem.
Blockchain Projects In Energy Sector
There are already various blockchain projects going on in the energy sector for the commodity trade finance. According to Metal Bulletin, one of the prestigious projects is being completed in the partnership of French bank Natixis, tech giant IBM and trading group Trafigura. Their main objective is to create a blockchain technology powered platform which will modernize the heavy paperwork involved in global crude oil trading.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]