Oil and Gas Blockchain Transformation 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 Oil and Gas 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. Blockchain in the oil and gas sector can play in important role in the upstream segement where the demands and supplies of oil and gas products can be optimized and scheduled with blockchain and IoT system. In addition, blockchain can help pipeline system operate with greater efficiency and transparency to speed up nominations and reduce disputes. Finally, blockchain plays an important role in commodity trading and risk management segment to gain business advantages in highly competitive environment.
How does EnHelix oil and gas 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:
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.
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.
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 oil and gas blockchain transformation in the energy 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 oil and gas 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.
Improved trust Amond Peers and Partners
Private oil and gas blockchain networks can store and keep a good track record for production and trading data. Besides the trust, the blockchain network reduces the cost of data security and redundency.
Improved data quality and management
Oil and gas blockchain offers an immutable for oil and gas firms from upstream, midstream and downstream. Given the immunity nature of blockchain data, the conventional methods of keeping such records are not only tiresome but also prone to many illicit behaviors such as forgery
Better internet of things (IoT) data storage
IoT is an interconnected system of mechanical machines or computing devices. Many industries rely on it. But the oil and gas industry relies on it more. IoT reduces cases of cyber-attacks and ensures smooth storage of data in the industry.
Finally, Enhelix oil and gas 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.