Oil producing gulf countries are all set to adopt blockchain-based technology platform to power up their industry by bringing transparency and efficiency across processes.
Cryptocurrencies and the underlying technology behind it, known as Blockchain, have received worldwide acceptance. More than the digital currency, its root technology is growing exponentially, even beyond the digital money area. Industries far and wide are busy practicing new ways to adopt the blockchain technology that offers the potential to enhance the security of digital information. Now it’s the turn of oil-producing gulf countries to realize the potential of Blockchain, the distributed ledger technology.
GCC Countries to Switch Platform to Blockchain
Led by the UAE (United Arab Emirates), Gulf Cooperation Council (GCC) countries are ready to embrace Blockchain Technology. “Dubai Blockchain Strategy,” is one of the leading projects which asserts that Dubai will be implementing a Blockchain enabled tech across its government agencies in the next two and a half years.
According to Smart Dubai Office Director General, Dr. Aisha bin Bishr, the government is planning a gradual transition to maintain compliance with the city’s requirements. Dr. Bishr stated:
“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.”
A revolution in the oil industry with Blockchain Technology
As per some oil experts, the distributed leger technology could be used to bring stabilization in oil prices. Many of the big industry players face issues like transparency and efficiency, which could be mitigated with the implementation of the Blockchain Technology. With radical solutions like smart contracts and distributed ledgers, oil industry could undergo a successful transition into the modern digital world.
The technology could help streamline the industry by dramatically reducing the enormous amount of paperwork that is currently involved.
Marco Dunand, Swiss trading major Mercuria CEO, says, “The energy industry will have to digitalize more and more in oil production, refining, and shipping. 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.”
Blockchain technology adoption in oil industry could also help facilitate implementation of future regulations in the sector. The technology might also help in increasing the security and the widespread accessibility of transaction data, thus causing better transparency between buyers and sellers of energy products. The entire setting could lead to reduction in complicated lawsuits and legal processes, which are currently prevalent in the industry.
However, it is not entirely clear that how things will unfold in the future. In any case, the UAE is leading the charge. If the cryptocurrency and its backing technology are benchmarks, revolution in the oil industry could happen sooner than expected.
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