A number of top oil companies, banks and traders are at the moment assessing blockchain technology and they are seeking to see if it is what they actually need in handling bills of lading. In other words they could be described as the documents needed in cargo ownership verification in line with commodity trading.
If matters play out according to the plans underway, then it implies that paperwork might be cut down in a rather significant way. A long the same line would be the reduction in costs as well as the elimination of errors and it goes without saying that would emanate in the accumulation of huge profits.
The official that runs global operations for commodity trader Mercuria Energy Group Alistair Cross while recently addressing several journalists took great pride in the way in which they moved about handling their title transfers.
The other thing was about the posting of trade execution which According to him results in quite much in terms of the associated paperwork. From records, it is easy to see that indeed paperwork hasn’t managed to evolve over quiet a long period of time.
Basically, Mercuria Energy happens to be a section of the blockchain-oriented consortium that covers lenders ABM Amro, ING Groep and Societe Generale not forgetting some of the major oil traders. Group and Koch Supply & Trading is one in the long list.
A person familiar with the matter said, “The companies have already carried out experiments with their blockchain platform for physical commodity trade. During the test, a tanker of oil was sold three times prior to getting to the final destination. Transactions were verified in 25 minutes rather than the typical three hours.”
The managing director at Societe Generale’s Swiss division Souleïma Baddi after attending a business conference adressed a number of news reporters telling them that their business had quite a large number of people around the globe helping with its management. He exuded confidence in outlining that the blockchain system would be moving quite along way helping the various persons perform their tasks in a pretty fast way.