Let’s face it – the oil industry has remained the same for decades, based on historic and paper-intensive ways that are due for an upgrade. Even though there is greater demand for the commodity, the ways in which oil is distributed and sold on the market has remained the same.
However, 2018 seems to be the year when many of these things will change. All thanks to the blockchain technology. Some of the biggest names in the industry began the charge for the integration of blockchain in an industry that is finally ripe for a distributed ledger technology so that it could function better.
As you probably know, the oil transporting industry involves ships (tankers) that are up to 500 yards long and embark on trips carrying millions of crude oil barrels. Basically, the new technology focuses on maintenance. What is so far known as the bill of lading (the paper system for maintenance and reports in the oil industry) can be soon replaced by a blockchain-fueled approach.
One of the main concerns with the paper-based approach (bill of lading) is the propensity for fraud. This is a top worry among traders and the main advantage of blockchain as the digital-based system that will carry the proprietary data to the blockchain.
Recent news says that there is more than just talks about this technology. A group representing some of the biggest names in the industry just teamed up to launch a blockchain-based platform for “physical oil trades” according to Bloomberg.
The fact that discussions went underway about this potential blockchain integration is one that already pitches blockchain as a technology that saves time and money all while improving the accuracy of transactions.
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