Blockchain: Commodity Traders in Geneva team up to impose blockchain
This morning I found a very interesting article in the “Le temps”, the article is here in French, but I took the liberty to translate the most interesting parts.
It is for the moment a prototype. But BP, Shell and Statoil have announced this week their partnership with Mercuria, Koch Supply & Trading and Gunvor, as well as banks ABN Amro, ING and Société Générale. An unprecedented consortium aiming to finalize a secure, real-time, blockchain-based platform to manage physical energy transactions from entry to final settlement.
The structure, managed and operated as an independent entity, will be open to the commodities industry. With the aim of replacing paper contracts and traditional operating documents – usually bulky – with smart pacts and authenticated transfers of electronic documents.
The project is currently awaiting the necessary regulatory approvals. Designed and already subjected to a stress test by its investors, it aims to reduce administrative operational risks and the costs of physical energy exchange.
Ultimately, this initiative could lead to the migration of all forms of data on energy transactions to the blockchain, thus improving the quality of data, increasing reliability (automatic verification to avoid document fraud) and increasing the speed of settlements. industrial scale while reducing costs for participants.
The energy industry, already hampered by inefficiencies and outdated procedures, has become more complex as new entities enter the industry. “Earlier this year, another joint venture between ING, Mercuria and Société Générale, called Easy Trading Connect, delivered compelling results with what we consider the industry’s first foray into the blockchain,” said Carolien Van der Giessen, ING representative and communication manager of the consortium.
I tried to find more details information, which platform they are planning to use, which data will be stored in the blockchain, which consensus protocols, etc… But nothing is available to the public! This is the first project I see that may work. Blockchain technology is a network technology, you can have the best platform, if the biggest players do not use it, it won’t reach mass adoption.
You can find a ton of project aiming to “tokenify “the shipping and commodity industry: Cargo coin, Chain trade, TEU token, BiTA, Binkabi, Open Mineral to name only a few. On the overall, I’m very skeptical about outside projects, they would need to be SOOOO GOOOD that they can’t be ignored by the main players… and currently…. I don’t see it…
Below you can find my first article about my thought on blockchain and international trade.