Global Energy Trading with Block Chain is Here...
Not only I had dinner last night with Exxon, Huntsman and many other supply chain teams to discuss block chain and crypto currencies, and how it will be implemented in global supply chains, but I wake-up this morning and read this report from Platt: global commodities trading is going block chain world-wide!
Mesmerizing how fast it is going!
Let me share just a few critical points from this great report:
1/ First, a quote from BP: "There’s a full acceptance in the front office of any trading room in Singapore that block chain will change not just how we trade, but potentially what we trade and who we trade with.” — Iain Lawson, BP’s Head of Structured Products for the Eastern Hemisphere.
2/ Second, how block chain can add value:
- Accessibility: a block chain improves accessibility by storing data in an encrypted, digital distribution ledger that can be accessed by every party in the block chain.
- Scalability: a block chain can be scaled up or down based on the number of parties involved, without any increase in paperwork, thereby improving the system’s efficiency.
- Digital verification: implementing electronic know your-customer (e-KYC) activities for the parties involved is viable and helps detect potential red flags.
- Security: using cryptography and key-based encryption, it is impossible to tamper with the documents and contracts within a block chain.
- Ease of regulatory validation: relevant regulators can be given access to a block chain to verify processes at every step of the transaction.
The ultimate paradox is that governments, crypto skeptics and usual laggards are currently concerned about lack of block chain and crypto currencies regulations, but in reality, block chain will actually facilitate regulatory validation! A dream come true for UK Anti-bribery and FCPA enforcement!
3/ Wholesale P2P trading for natural gas and power in Europe: Enerchain's project aims to enable large-scale peer-to-peer trading for wholesale natural gas and power – making it unique in its focus, size, and disruptive potential.
4/ "Prosumer power Microgrids": companies in Europe will enable households to trade small quantities of locally-sourced power directly with each other using block chain could disrupt traditional business models.
5/ Strategic Singapore: Singapore has emerged as a strategic base for digital startups in Asia, and several of these are developing block chain platforms for energy and commodity businesses.
The global block chain revolution has clearly started...! Not only with consumers, like I explained in my previous post with mobile phone bills, but also with global companies...
These global e-commerce marketplaces we heard about in the '90s and never really materialized may actually materialize due to block chain and cryptos!
And please do not forget that block chain distributed ledgers need crypto currencies for proof of works, proof of stake, proof of authority, proof of transaction, etc, etc... but only a selected few crypto currencies will succeed... like 90% of dot.coms disappeared in 2001 bust, 90% of cryptos and weak - or fake - block chains without solid development teams nor support behind them, will disappear too within a few years...