Influential Companies Planning to Build Blockchain Energy Commodity Trading Platform
During the year of 2017, numerous financial institutions, governments and companies have begun considering the idea of adopting blockchain technology thanks to its wide variety of benefits. Now, reports indicate that a consortium of companies consisting of integrated energy firms, trading houses and banks are planning the development of a new platform meant to facilitate energy commodity trading.
So far, it seems like the list of participants include high-profile companies and banks such as Shell, BP, Statoil, Gunvor, Mercuria, Koch Supply & Trading, but also a couple of banks such as Societe Generale, ING and ABN Amro.
The main purpose of this platform would be to reduce the operational risks alongside with the huge costs currently associated with energy trading. Additionally, the platform would also improve the efficiency of trading operations for numerous users. Last but not least, it would also bring new sources of funding alongside with a couple of financial solutions that will definitely improve the state of the market. According to reports, it seems that the platform will be operated independently, and be based entirely on blockchain technology. With this in mind, the blockchain platform would be used to securely transact energy, but also to manage the transactions from their entry to the end.
According to a press release provided by the consortium: “By combining the expertise of some of the largest players in energy and commodity trading with the trade finance credentials of established banks in this space, the new venture will benefit from its shareholders' ability to implement projects, as well as their first-hand understanding of the operational and process opportunities that digitalisation presents.”
In the long run, it is expected that the business venture will help bring all forms of energy trading directly on the blockchain network. Some of the other benefits associated with this move include increasing security, better data quality, reducing the potential for fraud, increasing transactions speeds and more.
At this time, it is unclear when the first release of the platform will be made, but the consortium did mention that the platform will be operational by the end of the next year, which is absolutely great news for the energy trading market.
Based on everything that has been outlined so far, it seems like the blockchain network is actively gaining new use cases, through the creation of new platforms meant to improve numerous industries.