Monday, December 3, 2018

World's largest commodity is now on Blockchain as North Sea oil market first to begin trading on platform

While most of the financial world is caught up in the cryptocurrency craze, most investors often forget that cryptos are simply assets traded on a much bigger platform.  And now on Dec. 2 we can add oil trading to this engine as the North Sea oil market has officially moved to trading on the Blockchain.

Oil majors and trading firms can start finalizing crude oil deals on a live blockchain-based platform for the first time, in a move that could revolutionize the market. 
Commodities trading firms have piloted similar schemes in recent years as blockchain technology has the potential to drastically cut costs in an environment of razor-thin profit margins. 
London-based platform Vakt is the first of these to go live, with shareholder Gunvor Group saying it was rolled out on Nov. 28, although no trades took place that day. 
Blockchain, the platform behind cryptocurrency Bitcoin, is viewed by many as a solution to trade and settlement inefficiencies, as well as a way to improve transparency and reduce the risk of fraud. – Epoch Times
The North Sea oil market was not the first to begin transitioning its trading to the blockchain, as Russia is also in the process of doing this for both their energy and agricultural markets.  However they appear to be the first major market to be ready to go live, and it will interesting to see how soon most Brent Crude trading also transitions over to the Blockchain once it fully kicks into gear.

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