The recent report says oil industries Shell, BP, and Equinor are backing up a blockchain project. This project will support the modernization relating to energy post-trade procedures.
During S&P Global Platts Digital Commodities Summit at London, Vakt Consortium takes the initiative to make the announcement on Monday. The product development vice president at Vakt, Lyon Hardgrave states that
- They are expecting the project to go live before November at the North Sea oil market
- In 2019, they are planning to launch this project at ARA barges, US crude pipelines, and waterborne markets.
- By January, they hope to board their initial licensees together with shareholders
The new platform focuses on digitizing trade by replacing paper contracts with smart ones using blockchain. Moreover, this will help cut costs, enhance transparency, and minimize the errors. There are few huge banks backing the three oil giants for this project. They include IMG, ABN Amro, Societe Generale. Moreover their trading houses as Mercuria, Gunvor, and Koch Supply & Trading
The estimation says up to 40% cost savings can get for licensees paying to utilize the platform. Additionally, eliminating the data inaccuracies and accelerating process. They state to clarify that
This 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.
This distributed ledger will record the transactions at the initial stage. However, there is a lot of room is waiting for expansion. The CTO at Vakt, Adam Vile adds
There is a whole stack of standard technology above the blockchain – we’ve built an enterprise solution with blockchain underpinning it.
The hopes for implementing blockchain still lie on high, despite looking at a crypto bearish market in 2018. While looking at giant energy firms getting onboard a blockchain train, minor solutions for domestic blockchain energy services are following the bandwagon.
There are many projects already working to develop more efficient and cost-effective energy sector. Moreover, it is just a matter of time before all of the energy dealings accomplishes with distributive ledgers.