It’s necessary and imperative that oil and gas companies or any other industry communicate effectively with their supply chain partners. That includes being able to generate reports, conduct analyses, draw inferences on current events, and help forecast future trends.
The rise of cryptocurrency will dramatically change the face of the global economy. Like Fluctuate in its value every now and then, As blockchain technology becomes an integral part of every financial institution and many other sectors worldwide, cryptocurrencies have become a way for investors to hedge against systemic risks in traditional finance. The below-listed information discusses how these innovative forms of digital tokens have been embraced by companies like Exxon Mobil Corp., Royal Dutch Shell plc., BP plc, and others.
Oil and Gas Companies are integrating bitcoin and blockchain:
Cryptocurrencies and their underlying blockchain technology can deliver secure and decentralized ways of making payments, investing, or trading. It is why some oil and gas giants like Exxon Mobil Corp., and Royal Dutch Shell plc. BP plc. Have already incorporated the new blockchain systems into their business structure.
This move has not only allowed these companies to avoid problems arising from fraudulent transactions but also helped them avoid situations where a third party could stop or reverse a transaction. In addition, blockchain-based payment systems make it easier for oil companies to reduce costs associated with cross-border transactions and help them engage with more suppliers. Companies that have already started incorporating blockchain solutions into their supply chain management include Exxon Mobil Corp. and Royal Dutch Shell plc. BP plc. Chevron Corp. and Total SA.
The idea behind blockchain is to provide a tamper-evident, immutable data record through online transactions between two parties. The transactions must be processed decentralized and rely on consensus rules to ensure that all the parties still agree on what will happen. In this way, blockchain technology helps avoid duplicity, fraud, and tampering in the supply chain management process and increases security.
Bitcoin is currently the best-known cryptocurrency, but there are hundreds of different digital tokens available for trade. Each of these digital tokens comes with its features and functions. Some are more secure than others, and some can be faster than others. Some are designed to work with other blockchains, while others work with their proprietary blockchain. The Bitcoin blockchain is the largest, but some blockchains have a much faster transaction time through their proof-of-stake model.
The global oil and gas industry is expected to see tremendous growth in the years to come as companies look for new sources of revenue. These companies expect cryptocurrency to be an innovative way of managing these sources of revenue, especially in countries like Venezuela, where hyperinflation may make oil production difficult shortly.
Cryptocurrency, the future of money?
Are cryptocurrencies and blockchain the future of money? Since blockchain is expected to be a part of every financial institution by 2022, experts expect a substantial increase in demand for new cryptocurrency tokens. As a result, fintech startups actively explore the new opportunities this technology presents and test new business models.
Bitcoin’s Institutional adoption:
Bitcoin has been the first successful application of blockchain technology. As a result, many companies and financial institutions are trading or accepting bitcoin as payment. These include Overstock.com, Dish Network, and Microsoft.
The breakaway cryptocurrency Ethereum has been embraced by an even more significant number of businesses and financial institutions. The companies that accept Ethereum as payment include Toyota, Merck, ING Bank Netherlands, and several others.
Ethereum’s Enterprise platform:
Ethereum offers a unique platform called “Enterprise Ethereum Alliance” (EEA). EEA currently has more than 86 members, including MasterCard, Cisco Systems, Hewlett Packard Enterprise (HPE), British Petroleum (BP), Infosys, and Scotiabank. This alliance is working towards integrating the Ethereum blockchain with traditional business models.
EA brings together the leading innovators in finance and technology to work on the next generation of project financing, asset trading, and product development that operate on the Ethereum platform. The key players are looking to address efficiency, cost, and speed gaps within their industries. It is a non-profit initiative that funds its member’s funds and is not subject to execution risks faced by for-profit initiatives.
A $10 trillion market:
Today, the global financial market amounts to more than $200 trillion. However, bitcoin only accounts for less than one percent of that total. Experts are predicting that the cryptocurrency market will be in the range of $10 trillion by 2022. As a result, there is a rise in cryptocurrency trading, with daily trading volumes hitting their highest point ever on May 24th, with more than $5.7 billion traded. The goal behind Bitcoin was to enable users to transfer value without needing a third party such as a bank or other custodian.
