Asia gives the first proof of concept with Blockchain backed Commodity trading. What future holds for blockchain now?

by - 5/07/2018 10:06:00 PM

Photo by David McBee from Pexels

As the year 2017 entered the middle period, the new wave of cryptocurrency frenzy took the world by storm. The bitcoin prices increased, introducing the world with an idea of the blockchain, which worked as an underlying technology for the cryptocurrency. The blockchain is a decentralized ledger of records that saves the data in a distributed form, to ensure the security of the information. However, as the word blockchain gained popularity and became a buzz, the world still sought a proof of concept that could guarantee the utility of the technology. China and Singapore, in the wake of the same events, recently conducted a commodity trade that can be called the 1st proof of concept for the actual implementation of blockchain technology in the trading business.

Sinochem Corporation, one of the four major state-owned oil companies in China recently traded Gasoline to Singapore via the blockchain technology. China, being the 2nd largest economy is now among the top importers of energy, therefore, the country has been exploring the potential of different technologies to guarantee a safe trade of energy for herself and others in the region. Energy trading is one of the major trades taking place in the world, especially for the developing economies that are completely relying on imported sources of energy from other states. In these circumstances, blockchain can play a vital role in providing a robust plan for a secure financial services, including those of banking to supply chain, to the emerging states with its implementation only.

Sinochem Energy Technology, a subsidiary of the Sinochem Corporation, on the same account, carried an operation of exporting gasoline from China to Singapore, earlier this month.

The Energy trading company claims that the operations were carried out completely on the blockchain. Sinochem trading company sent a shipment from Quanzhou, a port city of China to Singapore, claiming this to be the first time when blockchain technology was properly integrated to be used in the entire activity of commodity trading of gasoline from one place to another.
In December, the previous year, the Sinochem Group conducted its first crude oil trade backed on the blockchain, recording all the transactions on this technology. That was the first time the corporation tested the blockchain technology for trading, however, this time around, the company meant to keep the operations and transactions all managed by blockchain, to give the world an actual proof of concept that’s not been given before that.

The use of blockchain technology is not limited to financial transactions only, its uses spread from logistics to supply chain to banking and many other industries that it has disrupted in the shortest period of time since it emerged as a new technology in the world. In January this year, there took place the first agricultural trade on blockchain between the US and China. The trade, which included five different parties, was conducted using the blockchain platform Easy Trading Connect (ETC) for the delivery of soybeans. In another instance, retail company also implemented Blockchain to ensure a safe and unprecedented experience for customers, they can monitor their orders and check the product quality.  

Later, In the month of March, in 2018, an application was sent to the US Patent and Trademark Office (USPTO) by Walmart, for the use of “Smart Package” a blockchain based system, designed to track package contents and keep the perishable items safe and healthy in any environment and geographical location.

What’s next for blockchain

The Sinochem Corporation by giving the first proof of concept gave the world the signal about blockchain that it had long been waiting for. The technology of blockchain, which is considered to be a force that can revolutionize the world, is not just meant to handle the financial transactions but has a scope wider than this, the application of blockchain spreads to a number of industries and sectors. There are many companies and corporate giants that are incorporating blockchain in their system and exploring the potential of it in various fields. United Nations recently experimented with blockchain by implementing the technology in its several different operations.

The implementation of blockchain by Sinochem, a state-owned oil company is also a proof that it's not just the private organization testing the blockchain but also the state level companies that are incorporating it into their businesses.

The blockchain with different pieces of evidence from the world can be estimated as a technology that is here to stay, it can be safely said that the future of the world is seen in the blockchain technology where it will be used to make the financial, logistics, insurance, healthcare, retail and several more sectors more secure and incorruptible.

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