Blockchain Technology has been used to ship Oil for the first time in China – Blockchain News

Blockchain Technology has been used to ship Oil for the first time in China - Blockchain News

Blockchain Technology has once again found application in the shipping industry. Chinese largest energy company Sinochem Corporation has successfully shipped a cargo of gasoline from Quanzhou in China to its destination in Singapore using blockchain technology.

The shipment was conducted on last week by Sinochem Energy Technology Co. Ltd, one of the 300 subsidiaries of Sinochem Corporation. The first crude oil trans-shipment in the world to have used blockchain technology was also carried out by the same company. Sinochem Corporation also trades on chemicals, agriculture, real estate and is a finance provider in Asia.

Prior to this landmark achievement, Sinochem Group first successfully executed the simulated transaction of blockchain transfer in the Middle East. The accomplishment which took place in December 2017 was described on their official website.

In a web post, Sinochem Corporation explained that this event is the first hands-on application of blockchain technology in China’s energy and petrochemical industry. It also declares that this is the first time that blockchain technology has been applied all key players during the commodity trading process. The post read:

[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]The data analysis of the effect of this simulated transaction shows that, the two major supports of the application of this technology –the digital bills of lading and the smart contracts, can significantly enhance the execution efficiency of crude oil transactions, optimizing 20% -30% financing costs.[/perfectpullquote]

Asset Tracking and Management Using Blockchain Technology

Sinochem Corporation believes that blockchain technology enabled transaction in the petrochemical industry will enhance transparency, increase efficiency and safety. Other critical areas blockchain would improve upon includes increasing stability in the sector enhance the overall risk management level of the industry.

If the technology is standardized and integrated with the energy sector, it could simplify complicated and long trading time which would ultimately reduce cost especially if important documents are digitalized.

The need for simpler and safer means of tracking goods and services over long distances cannot be overemphasized that’s why a Chinese-based research institute called Banknote Blockchain Technology Research has unveiled a Blockchain-as-a-Service (BaaS) platform called the Blockchain Registration Open Platform (BROP) for tracking supply chain and customer’s identity.

A fellow Chinese company, Alibaba has also applied blockchain on several occasions in cross-border businesses. We reviewed Alibaba’s achievements in blockchain terms in this article

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