Blockchain-Based Trading Platform Backed by Energy Giants
Danish shipping firm Moller-Maersk in partnership with Microsoft was successful in their early blockchain trial for marine insurance. Major banks are in trial stages in Europe to use blockchain to increase security and the speed of cross-border Trade Finance.
Following a successful live oil trade between parties with Mercuria using blockchain technology, it’s shown that it is indeed possible to improve speed, reduce business risk and lower the costs of trading by using blockchain.
Traditional Paperwork Based Systems Are Incompatible with the Speed of Business
Business owners should not be interested in just making money, but also getting things done, because that’s how the profits come in.
Paper-based systems are time-consuming. Companies have to deal with more steps and more physical problems, such as paperwork needing to be passed from one department to the next.
Using the blockchain for transactions, and requiring independent verification, brings a potential for further cost savings.
Take for example the real estate sector. The transfer of ownership of a property requires an intermediary to first check there’s no fraudulent activity happening, and then the rest is just to change the name on the properties Title Deeds and update the Land Registry of the new owner’s details.
In essence, the intermediary fee is the cost of trust. Blockchain technology can eliminate that because it is tamperproof.
Why Giants are Spending Big on Future Technologies
Investors are business-savvy. They know the faster things move, the more business can be done. Therefore, profits can soar.
To put a monetary figure on the possible cost savings, a joint report titled Banking on Blockchain conducted by Accenture Consulting and McLagan analysed the world’s top investment banks.
The figure they come up with: $8 Billion annually.
A Massive Collaborative Effort by the Giants of Three Industries is On Board
The most recent move in the blockchain space saw a consortium of three sectors join forces.
Energy giants BP, Shell, and Statoil, the two trading houses Koch Supply & Trading and Mercuria (the latter having already successfully trialed a live oil trade using blockchain) all joined together. Three major banks are also part of this latest blockchain venture - ABN Amro, ING, and Societe Generale.
One Successful Experiment Proves the Need for Further Development
It’s clear from the early success of Mercuria that blockchain technology is going to be implemented in massive industries, one day. That day is getting closer. A lot of R&D is being spent by major brands to explore the possibilities of blockchain to increase business efficiencies
The most advanced solution currently available relies on smart contracts, something these energy superstars are keen to integrate into their blockchain prototype.
The same smart contract functionality the energy firms are trialing is what Etherecash is using to build a blockchain application for peer to peer lending, using smart contracts on the Ethereum platform to back loans by qualified lawyers.
Purchase our Etherecash token through our ICO from November 15th 2017. Developed on the ERC20 blockchain technology with lawyer backed contracts, to make blockchain backed lending and fund management, private and seamless.
Buy our tokens now. Visit Etherecash.io.
