Chinese oil giant Sinochem is exporting gasoline using blockchain technology

Chinese oil giant Sinochem is exporting gasoline using blockchain technology

Sinochem Group, one of the largest state-owned oil corporations of China, has successfully completed the supply of gasoline using the technology of the Blockchain.

According to Reuters, one of the 300 subsidiaries Sinochem Group Sinochem Energy Technology Co. Ltd. responsible for exporting product from China (Quanzhou) in Singapore.

According to the company, for the first time “to all key stakeholders in commodity trading” was applied to the blockchain. In 2017, the company has used the technology of the blockchain to import crude oil from the Middle East. Later on his web site Sinochem has placed the announcement, which explains how a digital bill of lading (a document issued by a cargo carrier cargo) and smart contracts can save 20% -30% of the financial costs.

Blockchain gets into logistics and shipping faster than in any other industry. In the future technology is committed to ensuring that commercial transactions in the petrochemical industry of China more transparent and to increase the overall level of risk management in the industry. Using the blockchain it is possible to create guaranteed accurate registers and reports.

Over the past few months China became a major importer of crude oil. The country also exports large amounts of petroleum products in different countries. Thus, the introduction of cost-effective method for future supply will benefit China in the long run.

Paperless trade was originally conducted through electronic means, however, the security and authenticity of the documents is still not guaranteed. The only way to ensure the security of documents from unauthorized access is to use a decentralized network, which can obtain for its members only. Last year, Deloitte has collaborated with DNV GL to track certificates and other products of marine vessels in order to put an end to the fake documents used by fraudsters.

Earlier this year, IBM and Maersk have established a joint company that will use blockchain technology for delivery, track shipments and automate the customs clearance. The platform will allow annual savings of billions of dollars due to the replacement of existing paper systems and electronic data interchange (Electronic Data Interchange, EDI), the use of which the containers are idle for weeks on reception venues.

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