The Shanghai Gas blockchain partnership is also a response to the increasing demand for digital transformation as a result of the COVID-19 pandemic.
The Shanghai Gas Blockchain Partnership
The Shanghai Gas blockchain partnership is coming on the heels of a successful pilot organized by VeChain and ENN, which focused on enhancing business processes and supply chain efficiency through a trustless “Energy-as-a-Service” ecosystem. However, Shanghai Gas blockchain partnership with VeChain will allow the energy giant to automate several of its processes, including energy trading, logistics management, financial product processing, and engagement with essential energy partners.
The first phase of this project seeks to augment the processes involved in delivering liquified natural gas (LNG). Technicalities like the delivery information and the component information of the storage tank (which reveals the quality of the LNG), will be uploaded to VeChain’s Thor blockchain via VeChain ToolChain, a one-stop BaaS Data Platform. This blockchain-based LNG management solution will facilitate enhanced data sharing across value chain stakeholders and allow for smooth business conduct due to the blockchain’s immutability. As one of the world’s largest importers of LNG, this project will help China manage its rising consumer demands in both rural and urban areas.
The Second Phase
Shanghai Gas is now planning to move to the second phase of the project; this will involve investigating the viability of blockchain integration for improving energy trading, logistic management, and creating new financial opportunities within the energy industry. Value chain stakeholders that will benefit from this initiative include insurance companies, logistics firms, and banks.
The Blockchain Energy Industry
The market for blockchain energy solutions is rapidly expanding, and experts are now predicting that this market may grow from a 157 million dollar industry (as of 2016) to a whopping $35 billion industry by 2025. This is no surprise considering the fact that several problems in the energy sector like delayed transactions, shipping, and audits are solvable through blockchain integration.
These optimistic predictions may have taken a hit due to the coronavirus outbreak, but this hasn’t stopped the big players from positioning themselves to reap the benefits of the next billion-dollar industry. These companies include Microsoft, Oracle, and IBM. Upcoming blockchain startups are also heavily involved in the development of energy-based blockchain solutions.
Power Ledger has recently launched a blockchain-based solar energy trading platform in Australia. This system will allow residents that utilize solar energy to sell excess energy to their neighbors who required it. The idea behind this initiative is to incentivize the adoption of green energy.
Power Ledger is growing and will launch a similar energy trading apparatus in France, which is currently falling behind its projected goal of obtaining 23% of its energy from renewable sources.
Elsewhere, Insolar, a platform as a service (PaaS) blockchain solution company, has teamed up with the Canadian government to create an energy blockchain system that will help maximize the use of renewable energy and solve intermittency issues.
All over the world, governments and energy companies are turning to blockchain technology to bring about highe+r levels of efficiency in the energy sector and promote the use of clean fuels. With the increasing concern of global warming and the effects of climate change, this trend will continue and will help blockchain cement itself as a viable tool in the energy industry of the future.