Wednesday, April 24, 2019

Gazprom, Russia’s Gas Giant to Execute Business Contracts on the Blockchain

Gazprom, a state-owned gas company in Russia intends to use Blockchain technology in executing its business contracts. The company has also developed a prototype of the platform. Alexey Miller, the company’s CEO revealed the news to Dmitry Medvedev, Russia’s Prime minister while in a meeting on April 3, according to a press release.

Gazprom to Use the Blockchain in Monitoring Business Contracts

Per the report, Gazprom intends to use the distributed ledger technology to monitor and execute its business contracts. Alexey Miller while speaking to the prime minister said the company is working towards implementing the blockchain in its operations. They also want to digitize the processes involved in the supply of gas.

The CEO further stated that they are working hand-in-hand with Gazprombank, a subsidiary that is also owned by the company. Together, they have developed a prototype of the Blockchain-based platform. The latter cannot be tampered with and unauthorized changes cannot be made.

Prototype Platform Provides Automated Arbitrage

More functionalities of the prototype which the CEO revealed is its ability to provide automated arbitrage as well as the automatic calculation of payment for gas. The platform “automates the process of concluding, monitoring and executing business contracts.” All members of the contracting system can use the platform since it is completely open, he added.

Alexey Miller also said:

Gazprom is currently ready to start implementing the process for automated support of contracting procedures regarding gas supplies. At the initial stage, this work will only concern major industrial consumers.

Russia’s Prime Minister Makes Comments

Dmitry Medvedev, on the other hand, remarked that the steps taken by the gas company are important to the development of Russia. He also said this was the case whether Gazprom uses modern technology or creates a prototype whose level of operation surpasses its foreign counterparts.

Medvedev also said the same applies to the internet of things and blockchain. According to him, “We’re talking about completely specific applications of an advanced and cutting-edge technology” whose practical use are usually misunderstood even though there are a lot of discussions surrounding them.

Russia Shows More Interest in Blockchain Technology

Russia of late has shown a lot of interest in Blockchain and that goes for both the government and private companies. An instance of the later was reported on November 14 that Gazprom Neft, a subsidiary of Gazprom had partnered with other banks to issue an international bank guarantee using Blockchain technology.

BTCNN on March 9 also informed that United Russia, the ruling party of the Russian Federation has included a blockchain-based voting function on its website. It will be used for the country’s preliminary election which has been scheduled for September 8.

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