April 15, 2024
By Sharan Kaur Phillora
Sinochem Energy Technology Co. Ltd., a branch of the state-owned Sinochem Corp, has successfully exported a shipment of gasoline from Quanzhou City, China, to Singapore, using blockchain technology. This venture represents the first instance where blockchain has been applied across all key players in the commodity trading process, according to Sinochem.
Here’s what we know:
The company previously made headlines in December 2017 with its first blockchain-enabled shipment of crude oil from the Middle East. Sinochem highlights that the use of digital bills of lading and smart contracts can reduce financial costs by 20% to 30%, addressing major challenges like security and document authentication that have plagued paperless trade for decades.
Blockchain technology, underpinning cryptocurrencies, utilizes distributed ledgers for real-time digital asset transactions and is touted as tamper-proof. This technological advancement has significantly improved physical commodity trading by providing transparent tracking of the supply chain and verification of the origin and quality of commodities, streamlining processes and enhancing efficiency.
Moreover, China’s energy sector is not alone in its embrace of blockchain technology. In 2019, over a dozen oil and gas companies, primarily from the United States, established the Blockchain for Energy (B4E) consortium. B4E is committed to disrupting traditional industry workflows by integrating blockchain to enhance efficiencies, reduce costs, and accelerate processes through collaborative innovation.
Based in Houston, B4E assists its members in revolutionizing how transactions, records, and data are managed in the energy sector. The consortium also fosters the development of lower carbon energy technologies through proactive collaboration.
Significantly, B4E launched its proprietary platform and permissioned blockchain network last year, marking a major milestone. Rebecca Hofmann, B4E’s CEO, noted that this platform ensures a secure, compliant, and future-proof infrastructure, crucial for adapting to the rapidly evolving Web3 space. This flexibility allows B4E to harness cutting-edge Web3 technology as it continues to advance, positioning its members at the forefront of industry transformation.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
