The energy sector is one of the fields where the companies are more concerned about privacy because it involves international relations. To cope up with the existing challenges and improve security, large scale oil companies have started to invest in the blockchain technology as it tends to reduce the cost and prevent harmful effects on the environment. The companies can actually store the renewable energy certificates and carbon credits that they receive to represent themselves as a reliable company.
There are various other use cases that can benefit the oil and energy industry in various aspects including real-time data management that could actually store the sensitive and private information of the company in a very secure way.
Blockchain has the capability to provide control over energy sources and gives a greater efficiency to its consumers. The immutable ledger can be used to store various energy-related data like market prices, tariffs, energy law compliances and so on.
There has been a huge history of manipulated and misreported data in this particular sector which lead to various controversies and corruption. Although these could be an accidental or unintentional act, it costs the companies badly and affects their growth.
Blockchain technology can also be used to disrupt commodity trading which would make it more efficient in terms of cost and performance than the conventional propriety systems. It also reduces the costs to maintain various trading systems, labour, data management, etc.,
Basically, the oil industry consists of three major segments namely upstream, midstream and downstream. The upstream segment where the extraction takes place. It consists of stakeholders who depend on the data from other firms. This is one of the areas where blockchain technology can be used because it is way safer and tamperproof, protecting the data from hackers. Midstream segment involves storing and transporting the extracted resources. It includes more of managing transportation networks and regulation. Blockchain can be adapted to regulate and follow the track of the process that takes place. Perhaps, a step-wise report can be generated using blockchain technology.
Downstream is the stage where the resources are refined into various final products and sold to end-users. These products reach various customers and comply with different environmental regulations. Blockchain technology would be extremely beneficial for tracking supply chain.
Therefore, Blockchain technology in energy sector is one of the interesting and extremely useful cases to adapt. Top blockchain companies in India are looking for the prospects in this particular arena and many blockchain companies have also started working on initial projects. To learn more about blockchain technology, check out more updates from BSEtec.