Major names in the energy sector recently partnered with credible financial institutions in other to launch a new blockchain based energy commodity platform later in the year.
Major Players Collaborate on Blockchain
Major oil giant, Shell was among the partners that recently endorsed a project supporting the modernization of energy post-trade processes. The announcement represents a major boost for the blockchain technology, signifying its adoption by the biggest names in the world economy.
The monumental agreement was announced at the S&G Global Platts Digital Commodities Summit in London by the Vakt Consortium. Speaking on the new project, the Vice President of the Vakt project Lyon Hardgrave said:
“We expect to go live at the end of November, in the North Sea Oil market” before adding that “In 2019, we will look at ARA barges water bone market and US crude pipeline. And by January, we expect the first license will come on board, in addition to our shareholders.”
In other to ensure transparency, reduce cost, avoid ambiguity and minimize errors, the platform is aiming to step away from paper contracts to smart contracts on the blockchain technology. Some of the leading names in the effective partnership are IMG, ABN Amro, British Petroleum(BP), Shell, Societe Generale and also trading houses such as Mercuria, Koch Supply and Trading, and Gunvor.
Clarifying major misconceptions about the platform, Hardgrave continued by saying:
“This is not a trading platform or a settlement platform- there is not cryptocurrency involved. But it is everything in between deal recap; confirmation; contracts; logistics (the really big element in all this) – and invoicing.”
The Global Acceptance of Blockchain
The interest in Blockchain technology has peaked in recent times, with virtually all major industries embracing the new technology. While the food processing industry is famed for using the technology to trace the source of food to avoid food spoilage, the manufacturing industry is known for using the technology for the sole purpose of accountability and transparency and to authenticate the claims of most of its staffs to avoid ghost worker and ensure a level playing ground.
The recent collaboration among the major players in the energy and financial sector on the blockchain technology is a major statement that technology is now globally accepted.