IBM announced the first blockchain technology for oil trade

In April, 2017 the companies IBM, Natixis also Trafigura announced as they claim, the first in the market a solution blockchain for oil trade. It was created by request of Natixis bank which does the business connected with crude oil. In particular, it is authorized to company to perform supply of raw materials according to futures contracts.

Developers expect that using new technology of the transaction of Natixis in the field of trade in raw materials will become more effective and safer.

The system constructed on the open Hyperledger Fabric project and placed in cloud infrastructure of IBM Bluemix allows to exchange commodity documents, up-to-date data on shipment, the statuses on delivery and payment in the unified joint register. It as developers say, reduces a transaction time, reduces the number of duplicates of documents and optimizes process of identification of trading partners.

IBM announced the first blockchain technology for oil trade

The new solution is designed to reduce a turnover cycle of money and to increase profitability of transactions due to overhead reduction and number of intermediaries. The platform will also improve visibility of transactions, having provided minimization of threats of cracking, fraud and cyber attacks and also having performed operations by more transparent using public processes and accounting, authors of the project are sure.

Current transactions are performed on paper and are very labor-consuming. Therefore we face the numerous problems connected with the high cost of data processing and the low level of automation. In our opinion, the technology of the distributed register will allow to introduce necessary innovations in the industry" — Arnaud Stevens, the head of global power and raw materials in Natixis company reported.

Possibilities of the created platform are going to be expanded, having allowed all parties of transaction to enter data directly in a blockchain platform. For example, the employee of the freight company, operator of the pipeline, the controller or the warehouse worker will be able to provide updates on transactions with crude oil in real time.^[1]

Notes