Chinese Company Sinochem Implements Blockchain Technology to Export Gasoline

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Blockchain technology keeps expanding all over the world and in many different fields. This time, the Chinese Petrochemical company Sinochem Energy Technology used blockchain to realize gasoline export. This is the first time that the technology is used in this kind of industry.

Sinochem Group Uses Blockchain Technology

This is the first successful attempt that is completed on implementing blockchain technology to export gasoline. The export process was carried out between Quanzhou (China) and Singapore. The information was released by the news source Xinhua.

In the past, Sinochem Energy Technology was using blockchain technology in order to process a trial transaction. The company finished the “first simulated transaction of the Middle East oil block business,” in China.

Blockchain could reduce costs and bureaucratic processes of several enterprises from different fields. According to the company, by using blockchain and smart contracts, the financing costs for oil transactions could be reduced between 20% and 30%.

The company explained in a document:

“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 been implementing strict regulations to the cryptocurrency and Initial Coin Offering market. But blockchain enterprises are spreading in the country. JD.com, another retail giant in China, has been testing blockchain technology in order to track the information of some of the products it sells. That would help reduce the amount of individuals intoxicated with contaminated food.

Energy Companies Working with Blockchain Technology

This is not the first time that an energy company works with blockchain technology. In the past, BP and Eni started to test this technology several months ago. Enel and EON have also been working with it.

Wien Energie is another important energy company from Austria that has implemented a blockchain system to interact with its clients.

Chief Innovation Officer of Wien Energie, Astrid Schober, commented:

“We are testing blockchain-based services in Vienna’s Viertel Zwei and once we have collected enough experience there, we will develop business models and bring them to the market. It may be overoptimistic but services may become available this year as we are trying to be active and build the know-how in our company fast.”

The company explained that with this implementation it is able to reduce costs, risks, and increase its protection against possible cyber attacks. Furthermore, as the company has hundreds of clients in the country, implementing blockchain technology would reduce the time to process their information and contact them in case it is needed.

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Image Courtesy of Sinochem and Pixabay