Sinochem Group, China’s leading energy, chemicals, agriculture, real estate and finance provider, has successfully completed the shipment of gasoline using blockchain technology.
Reuters reported that one of its 300 subsidiaries, Sinochem Energy Technology Co. Ltd., was responsible for exporting the product from China’s city, Quanzhou, to Singapore.
While details of the process were not revealed, it is said that this was “the first time that blockchain applications have been applied to all key participants in the commodity trading process.” However, the company claims that this is not the first blockchain shipment, instead, one was carried out in Dec. 2017 for importing crude oil from the Middle East. Sinochem then posted an announcement on its website explaining how the digital bill of lading and smart contracts could save 20%-30% financial costs.
The standardization and platformization of the blockchain technology enabled trade in China’s petrochemical industry in the future will help improve the transparency of the transaction business in China’s petrochemical industry and enhance the overall risk management level of the industry.
China has become the top importer of crude oil in the last few months. The country is also exporting a great deal of oil-based products to different countries. So, implementing a cost-effective method for future shipment will benefit China in the long run.
Digital Documentation via Blockchain
Paperless trade was initially used through other electronic means, however, the security and authenticity of documents are still not guaranteed. The only way to ensure that documents remain safe from tampering is to use a decentralized network which can only be accessed by its participants. Last year, Deloitte partnered with DNV GL to track certificates and other products of shipping vessels to put an end to forged documents used by scammers.
Earlier this year, IBM and Maersk collaborated to create a new company which will use blockchain for shipping products as well as providing services to offices and ports.