Oil and Gas Transformation with Blockchain has continued to gain popularity over the years. The transformation of the oil and gas industry using the blockchain network is not a new phenomenon; rather, it has continued to gain immense popularity in the last few years. From agriculture, retail, banking to the oil and gas industry, blockchain has caused significant improvements in terms of compliance and supply chain management. To understand some of the radical and positive changes caused by the use of blockchain network in the oil and gas industry, it is vital to give a detailed description of what the blockchain network is all about and how it work.
What is Blockchain?
Blockchain is an open distributed ledger that records various transactions between parties involved permanently and efficiently. The ledger can also be programmed in multiple ways to allow automatic transactions. Blockchain carries all these activities without involving trust keepers or intermediaries. By excluding intermediaries in the chain, blockchain increases transparency and connects all stakeholders well. The main benefits of this technology include immutability, provenance, security, and reliability.
How does EnHelix blockchain work?
The oil and gas sector is filled with lots of fraudulent activities, and that is why Enhelix blockchain network was created to increase efficiency by creating a transparent process that gets rid of middlemen and intermediaries. EnHelix blockchain is deployed entirely on the cloud. The software platform works on top of the best Enterprise-grade framework Hyperledger Fabric on super scalable AWS services – business solutions and technologies packaged for a faster blockchain production system. Enhelix blockchain solutions for the oil and gas sector comprises of three major systems which include:
EnHelix Marketplace Blockchain system:
Here, energy and commodity firms can conduct business transactions using smart contracts in order to reduce paperwork and reconciliation for post-trade and order operations.
EnHelix Logistics Blockchain system:
This was created for midstream, cargo brokers, and logistics companies to streamline their scheduling, nomination, and billing operations with improved speed and transparency using distributed ledgers.
EnHelix Settlement Blockchain:
This is a fin-tech system for all oil and gas, energy, commodity businesses to process, audit, and track all payments and fees.
Benefits of Enhelix blockchain in the transformation of the oil and gas sector?
Authenticity and Quality Control
Enhelix distributed ledger technology tracks the sourcing of raw materials, and products ordered from suppliers through blending. The ledger does this by using its digital data, which is usually linked to special identifiers. Each label has a unique code. If the code becomes untraceable to the blockchain information, the company assumes the product is counterfeit. In this way, oil and gas companies save both time and money spent in differentiating between original and fake goods.
Cost reduction is a priority to many businesses. This is made possible with blockchain technology. It reduces costs in these ways: First, it gets rid of the need to include middlemen or third parties in the business. This helps you to save on the money you could have used to pay them. Secondly, it minimizes human calculation errors. When the errors are few or totally not there, your clients will trust you more. This helps you to make more sales and save more.
With Enhelix blockchain, record keeping is done using a single ledger shared among different participants. This means that you don't have to contact various people or consult many ledgers when you want to reconcile an account. Every participant can access the same information, and that's why clearing, decision making, and settlement is made more accessible.
traditional paper processes are usually time-consuming. It is also prone to many errors. Besides, it requires the mediation of third parties to monitor the transactions.
Finally, Enhelix blockchain technology solves a lot of problems as listed above. It does not only automate and streamline processes to complete transactions within a shorter period; it also promotes transparency by ensuring all transactions are carried out on a single ledger.