London-based Vakt oil trading blockchain platform went online this week, Reuters said, with Shell and BP among the first to start using the platform. Reuters reports that Vakt will be restricted to "contracts for the five rough grades of the North Sea that are used to set up the Brent" for the time being.
"Collaboration with our colleagues and some of the industry's key players is the best way to combine market expertise and reach the scale needed to launch a digital transaction platform that could transform the way we all do business," he said Andrew Smith, EVP for trading and supplying at Shell International Tradding and Shipping Company Limited. "Ultimately the goal is to improve speed and safety, which benefits everyone along the supply chain from market participants to customers."
"Digitization is changing the way the energy value chain works, it's an exciting time," added Smith.
The platform was created in 2017 by a consortium of industry leaders, including BP and Shell, as well as Equinor and commercial companies such as Mercuria Energy Group.
Basically, blockchain simplifies operations and eliminates part of the bureaucracy involved in trading. It could also improve transparency and reduce costs.
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