Some of the world’s major energy companies have made a decision to participate in a blockchain platform for energy commodities. Reuters and other sources are reporting on this news today as Chevron, Total and Reliance Industries, (US, French and Indian companies respectively), are planning to join the Vakt platform that’s powered by J.P. Morgan’s Quorum blockchain platform system (since Jamie Dimon’s big bank firm has also jumped onto the bandwagon!)
All of this is built on long-term research and development as Cointelegraph reported last fall that oil companies were putting their heads together to develop the blockchain-driven Vakt platform. BP, Shell and others have already signed on.
“(Reuters) stresses that the agreement is a step towards quicker and safer logistical operations,” writes Max Yakubowski at Cointelegraph. “The Vakt platform … aims to become a digital transaction platform that would transform the oil business worldwide.”
“The blockchain platform is aimed to help trading companies replace paper-based documentation with smart contracts,” writes Yogita Khatri at Coindesk. “By automating parts of the process, the move is expected to help companies cut costs, reduce errors and make post-trade processes more efficient.”
While the name of the platform brings to mind possible misunderstandings between crypto currency enthusiasts – (did you mean Bakkt, the platform offering Bitcoin futures? No, I said ‘Vakt’, the oil and energy blockchain platform!) – it’s perhaps no surprise that these energy companies are trying to innovate, given that their flagship product is slowly ceding ground to renewable energy options.
But even dinosaurs can adopt new technologies, and for those who are interested in promoting blockchain as a future transaction maker, a blockchain energy consortium is fuel for the fire – no pun intended.
This news may change your cryptocurrency holdings, or it may change your energy holdings in your portfolio. Or, if you’re taking the long view where you see blockchain as eventually overpowering traditional paper currencies, you may also be induced to swing towards renewables. Keep an eye on industry moves like this that show a greater trend toward institutional blockchain adoption.