Petro Giant Sinochem From China Exports Gasoline Using Blockchain Technology
Reuters reported that one of its 300 subsidiaries, Sinochem Energy Technology Co. Ltd., was responsible for exporting the product from China’s city, Quanzhou, to Singapore.
The details of the process were not revealed, but it is the first time, that blockchain applications have been set in the commodity trading process. The company informs it is not the first blockchain shipment. The other was carried out in Dec. 2017. Sinochem then posted an announcement on its website explaining how the digital bill of lading and smart contracts could save 20%-30% financial costs.
The standardization and platformization of the blockchain technology enabled trade in China’s petrochemical industry in the future will help improve the transparency of the transaction business in China’s petrochemical industry and enhance the overall risk management level of the industry.
In the last few months China has become the top importer of crude oil. The country also has a great deal of oil-based products on different countries. So we can say this action will be an effective method for technology future.
Still the security and authenticity of documents are not guaranteed, despite that paperless trade was initially used through electronic means. The only way to ensure that documents remain safe from tampering is to use a decentralized network which can only be accessed by its participants. Last year, Deloitte partnered with DNV GL to track certificates and other products of shipping vessels to put an end to forged documents used by scammers.
IBM and Maersk collaborated earlier this year to create a new company, which will use blockchain for shipping products as well as providing services to offices and ports.