Energy Industry interested in Blockchain technology
Written by Anej Korsic on April 18, 2018
At The Decoding Blockchain KSA event, will be presented a production solution for the energy industry. It is said that with innovations, blockchain technology brings, production costs could be cut by five or more percent.
Is Blockchain the solution for the energy industry?
Relentless demand for efficiency and transparency – paired with little progress – brings the energy industry to a crossroads. Paper contracts and archaic trading platforms, implementing blockchain’s distributed ledgers and smart contracts could finally catapult the industry into the digital era.
In the heat of the world’s oil production, Saudi Arabia’s huge investments in high tech make it by far one of the most fertile regions in the world for Blockchain.
Nick Spanos, Co-founder of Zap.org, who will speak at the event, said:
The future has arrived for Saudi Arabia’s energy market. As Blockchain reinvents every aspect of the energy industry, it’s good news for a sector that for decades has seen very little progress
With smart contracts using Zap.org oracles, firms can now track the production of a barrel of oil from when it leaves the ground, to its delivery to the consumer. This way, contractors, vendors and taxes at every stage — upstream, downstream, and shipping — would be paid the instant they’re owed, based only on what the smart contract verifies has occurred in that stage of production or shipping.
Thanks to this reinvention of chain-of-custody logistics, transport, and shipping will be seamless, accounting will occur on the spot, and clearing will be instant.
Analysts also point out that it could reduce expenses by five percent — or more. For Saudi Arabian oil producers and the government, that’s billions of dollars saved, every year.
Until recently, a smart contract could generally only function with data already programmed in the blockchain. Now, using Zap.org’s ‘oracles’, smart contracts can verify trusted sources of data and events, and make the contracts dynamic and responsive.
Their Energy Ledger project is customizing blockchain solutions that private industry and governments can use to smooth out the supply chain, slash arbitration and clearing costs, and nearly eliminate tangled backroom trading and accounting offices.
Decentralized, peer-to-peer trading is the future; it means unprecedented transparency, less administrative burden, and fewer middlemen,”
explained Mr. Spanos.
Spanos adds that blockchain’s distributed ledger reduces vulnerability to cyber terror, by ensuring that there’s no longer a single point of attack for cybercriminals. Instead of passwords and data being in a central database, each user controls their private key and data.
In a globally-connected economy, the impact of transitioning to blockchain technology is expected to be profound and turn any industry on its head — particularly the oil industry. Even if the oil sector has lagged behind in adopting this technology, industry leaders say that it is bound to happen. As oil producers struggle to find stability and strive to reduce costs — while consumers increasingly demand greater transparency — could blockchain finally offer the solution?
Come find out from the best minds in the blockchain space at Decoding Blockchain KSA, Saudi Arabia’s very first blockchain conference. While the conference offers unique networking opportunities for attendees to connect with Blockchain industry leaders and innovators, it will also present a range of speaker sessions through which participants are given the opportunity to meet with innovators who offer business solutions that will help the oil and gas industry reduce costs and improve efficiency and integrity.
Hear from blockchain industry leaders from across the pan-Saudi region — as well as the rest of the world — when they convene on a single platform on April 23rd and 24th, 2018 at The Riyadh Marriott.
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