IBM has collaborated with the state-owned Abu Dhabi National Oil Company (ADNOC) to pilot an automated blockchain-based system that integrates oil and gas production across the entire value chain. It provides a secure platform for validating, tracking, and executing transactions at all stages, from the production well to the end consumer. The announcement came via an ADNOC press release on November 9, 2018.
This is yet another high-profile blockchain project for IBM. Even though the blockchain industry is still in its nascent stage, this isn’t stopping the American multinational IBM from charging ahead to become a blockchain powerhouse.
Blockchain Is A Game Changer
Abdul Nasser Al Mughairbi, the digital unit manager for ADNOC stated that he believes blockchain is a “game-changer” before going on to say:
“We believe this could be the first application of Blockchain in oil and gas production accounting anywhere in the world. It demonstrates how ADNOC is leveraging innovative partnerships to unleash the power of technology and creative thinking to enhance efficiencies and deliver greater performance.”
IBM’s Chemicals and Petroleum Solutions VP, Zahid Habib, explained that the pilot is a massive leap forward which allows ADNOC to track irrefutably, every drop of oil, and the value of it from the well to the customer. He went on to say that it would accelerate ADNOC closer to their 2030 vision.
IBM, a Huge Player in the Blockchain Industry
In September 2017, Juniper Research ranked IBM as the blockchain technology leader, and more than a year later, it appears to be holding this position with numerous projects, products, services, partnerships, and collaborations in the space. Just recently it was reported that investment banking giants Morgan Stanley and Goldman Sachs started using an IBM-powered payment netting service based on blockchain.
IBM state on their website the industries they can add value too with the IBM Blockchain. These include banking and financial markets, retail and consumer goods, insurance, government, automotive, healthcare, travel and transportation, and media and entertainment. IBM state that blockchain adds increased privacy to many of these services.
IBM has also been making strategic partnerships through its ‘IBM Partners’ program that incentivizes projects with big potential to use IBM’s technology by offering resources and tools to helps transform them into industry leaders. Notable examples of IBM partners in the blockchain industry include Cryptyk and Stellar.
Cryptik is a blockchain company that was ranked as one of the ‘Top 10 Enterprise Security Startups for 2018,’ and provides services like decentralized multi-cloud storage and a blockchain platform for auditing and tracking. Stellar dubs itself as “the future of banking” and its native cryptocurrency, stellar lumen (XLM), is currently ranked as the fourth largest by market cap in the world. IBM partnered with Stellar to create carbon credit tokens that enable businesses to offset the negative effect they have on the environment by aiding the wellbeing of the rainforest in Indonesia.
Using Blockchain in Your Everyday Life
When it comes to jumping on the Blockchain bandwagon in everyday life, most people start by investing in Bitcoin.
While Blockchain tech is revolutionizing the way the world trades, it’s not without its weaknesses. In the personal banking realm, cyptocurrencies are stored and transacted in crypto wallets. Due to the digital nature of this currency, the danger of theft from wallet-hacking arguable surmounts that of the fiat system, where a centralized bank can be held accountable for losses. If you’re careless with your private key, hackers can easily gain access to your wallet. To mitigate this, encrypt the file where you store it, and use a VPN to encrypt your internet traffic if it’s stored on a cloud drive. Security of your private key is of paramount importance, and its security rests on whether wallet and VPN service you use is trust-worthy so invest in these digital products wisely. Good things don’t come cheap, but you can perhaps find crypto and VPN services discounts online.