Blockchain technology is the ledger system which undergirds the cryptocurrency industry. As the cryptocurrency industry has grown exponentially in recent months, the popularity of blockchain, both in and out of the digital money area, has grown along with it. Industries far and wide are experimenting with ways of adopting the new system to enhance their business practices. Now, according to Coin Telegraph, a number of the world's top oil-producing countries are making the switch to blockchain.
GCC Countries Make the Switch
The report suggests that Gulf Cooperation Council (GCC) countries, led primarily by the United Arab Emirates (UAE), are racing to switch their platforms to blockchain. One of the leading projects in the UAE is called "Dubai Blockchain Strategy," and it stipulates that Dubai will aim to use blockchain powered tech in all of its governmental agencies in the next two and a half years.
Smart Dubai Office Director General, Dr. Aisha bin Bishr, suggests that the government is planning the transition carefully to ensure full compliance with the city's requirements, saying that "we're taking the responsibility here in Dubai to make sure that we shape this nascent technology and make it happen in a way that really suits [the] city's needs."
What Could Blockchain Mean for the Oil Industry?
Some oil experts believe that blockchain could help to stabilize oil prices. The adoption of this new technology may help to quell demands for increased transparency and efficiency, long an issue for many of the largest players in the sector. By implementing smart contracts and distributed ledgers, the oil industry could be successfully transitioned into the modern, digital world.
Swiss trading major Mercuria CEO, Marco Dunand, blockchain technology will streamline the energy sector by dramatically reducing the huge loads of paperwork which it currently faces. "The energy industry will have to digitalize more and more in oil production, refining, and shipping," he says. "So traders will also have to participate...introducing blockchain will allow passing title from buyer to shipper to seller without going through the massive paperwork of bills of lading."
Adopting blockchain technology could also help to implement future regulations in the oil industry, too. Blockchain might also be able to increase the security and the widespread accessibility of transaction data, facilitating a new level of transparency between buyers and sellers of energy products. This, in turn, could hopefully help to reduce the complicated web of lawsuits and legal processes which have traditionally been part of global partnerships in the industry.
How quickly will all of these changes come about? It's not entirely clear, although the UAE does appear to be leading the charge. If the cryptocurrency industry and its quickly-changing landscape are any indicators, the oil industry could be disrupted significantly in a relatively short span of time.