There are many industries that stand to benefit from the adoption of blockchain technology. A lot of sectors have already extensively implemented blockchain technology into their everyday procedures. There are many other industries now looking into the possibilities that this technology offers.
A new blockchain project backed by Equinor, Shell and BP is aiming to modernize the standard physical energy post-trade systems.
This project will be live before the year is finished. The platform is called Vakt and this was announced during the S&P Global Platts Digital Commodities Summit which took place in London.
The current systems are paper-based for the trading of contracts. They will be changing this to smart contractors, which is a digital format. Therefore, costs will be lowered, the number of errors will fall and other operations will be made a lot more efficient and reliable.
They are aiming to be live by the end of November, initially focusing on the oil sector in the North Sea. Going into 2019, they will expand their focus in a more extensive manner.
A licensee is going to make a payment in return for using the platform. They are estimating that using it will save the client as much as 40% in the costs for post-trade resolution. This is certainly an exciting development for everyone in the oil sector.
They are expecting to achieve mass adoption as there are not really any other competitors with this level of backing in the space as of yet.
The vice president for product development on this project said: “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.”