Blockchain technology is no longer limited to innovative startups with grand intentions of changing the world. Massive multinationals are also looking to use the technology to improve their operations and boost productivity. The latest in the lineup to get on board the blockchain train is petro corporation Shell.
According to industry portal OilPrice, the energy giant has bought up a minority share in Gartner-listed startup Applied Blockchain. Details of the deal have yet to be disclosed, but the move will enable the London startup to help Shell explore how the technology might be applied to its business.
Operating for around three years now, Applied Blockchain has clients from the banking, telecoms, carmaking, manufacturing, and aerospace industries. This its first foray into energy. The technology is slowly entering into the energy sector with, according to Reuters, a consortium involving Shell, BP, and Statoil already working on the development of a blockchain-based energy commodity trading platform.
Shell chief technology officer Johan Krebbers highlighted the huge potential blockchain tech has for business:
Blockchain applications have huge potential to shake up how we do things in the energy industry from streamlining process, to simplifying how we work with our suppliers and serve our customers. Investing in Applied Blockchain is part of our commitment to use digitalisation to create value in our core business and develop new business models.
Shell is not the only energy company with eyes on blockchain technology. Last year, it was reported that trading house Mercuria started working with banks ING and Societe Generale on the first large oil trade based on blockchain technology. According to analysts, the marriage of blockchain and the oil and gas industry presents a number of opportunities for streamlining and improvements in cross-border payments, record management, supply chain management, and smart contracts as potential applications.
Specialists at multinational professional services network Deloitte stated:
A secure system that mitigates risk, increases transparency, provides an audit trail, and speeds up transactions at a significantly reduced cost may be appealing to oil and gas companies.
As the crypto space expands and more companies develop blockchain solutions, the entire industry will benefit from a technology which is revolutionizing the way the world does business.
Will more blockchain adoption help cryptocurrency markets? Share your thoughts in the comments below.
Images courtesy of Pixabay and Bitcoinist archives.