Chinese news agency Xinhua reported Monday that Sinochem Energy Technology Co., a subsidiary of Sinochem Corporation, has successfully completed a shipment from Quanzhou, China, to Singapore using blockchain technology.
Unlike Sinochem’s first blockchain trial run in December of 2017, this time all key participants in the commodity trading process used the same blockchain system. The use of the blockchain by all the central parties in the process greatly reduced inefficiencies and made the process more cost effective.
After their successful blockchain trial in December, Sinochem released a statement saying in part:
"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."
They also added that the blockchain optimizes transactions, saving between 20% and 30% on financing costs.
The entire global energy sector has shown interest in using blockchain to optimize the efficiency of commodity transportation. In June of 2017, oil giant BP and Italian energy giant Enel began trial runs of a blockchain platform.
Although cryptocurrencies have been getting the most publicity in recent months, some of the largest applications for the underlying blockchain technologies have been flying somewhat under the radar. In early March, US shipping and logistics company UPS filed a patent for a “Smart Package” system that will operate using the blockchain and will provide information about packages including their location and contents.
The implementation of blockchain technologies may be a precursor to the implementation of digital currencies to enhance the current state of multiple global industries.