Globally, ocean tankers the size of 5 football fields set sail on a daily basis, using paper records instead of blockchain technology to track their cargo. This bill-of-lading system is likely to soon be replaced with the same methods used to track and verify Bitcoin, which is the shared online ledger of Blockchain technology.
“The way we do our title transfers and post trade execution is very heavy on paperwork,” said Alistair Cross, global head of operations Mercuria Energy Group Ltd. “And the paperwork hasn’t really evolved over the last couple of hundred years.”
A consortium of oil producers, traders, and bankers have already tested the system which reduced the transaction time, of selling a large oil tanker, down from 3 hours to 25 minutes.
Furthermore, paper documents remain susceptible to fraud, so traders are interested in a more secure alternative.
Write: Sara Bauer