Russian government-based gas company Gazprom is betting on blockchain technology to carry out and track its future business contracts.
The company’s CEO, Alexey Miller, announced the plan during a meeting with the Russian prime minister Dmitry Medvedev, stating Gazprom is now “ready to start implementing the process” of digitizing the gas supply chain using blockchain in its activities.
Details Of The Gazprom Blockchain Website
Miller highlighted that they had created a prototype of a technological website. This website automates the process of concluding, tracking, and executing contracts. The platform also offers automated arbitrage and calculation of gas payments.
For the gas industry, blockchain technology can minimize the time devoted reconciling price and volume variations among the stakeholders. Blockchain technology accomplishes this by availing the same information to all the stakeholders at the same time.
Furthermore, the potent combination of distributed ledger systems, processing plants, and pipeline sensors can monitor output and invoice traders in real-time to automate invoice processing. In this automated process, sensors collect information from various sources to ensure correct billing based on processed contracts.
The website platform is available to all stakeholders participating in the gas industry. In addition, it fully protects industry participants from any illegal alterations. Gazprom will initially partner major industrial consumers to execute the blockchain-based process.
The History of Gazprom Blockchain Developments
Gazprom has been carrying out blockchain trials for some time. In 2018, its aviation refueling branch Gazpromneft-Aero started using blockchain and smart contract invention to automate forecasting and accounting processes in fuel supplies. Above all, Medvedev was decisive in his response. He continually states that the distributed ledger system holds a promising future in the Russian economy and gas industry.
Another branch, Gazprom Neft, the third biggest oil producer in Russia, started experimenting with blockchain to enhance logistics and procurement services in February last year. After two months, Gazprombank announced its intentions of permitting its wealth customers to trade digital currencies. Currently, no comprehensive report has been issued at that time.