Exploring blockchain capabilities in uranium and energy trading
The blockchain community has been growing significantly, and not only crypto enthusiasts are putting more faith in blockchain solutions. The major companies are not pacing themselves with digital investments either.
The giant uranium producer Uranium One and distributed ledger technology (DLT) startup Insolar have collaborated to delve into the capabilities of blockchain in uranium and energy trading.
The partnership will aim at improving the production and distribution of uranium since the majority of ongoing ventures in the industry are still conducted based on non-standard contracts, and hence when crossing borders are subject to thorough legal review.
Uranium One and Insolar believe in the power of the blockchain to enhance security, compliance, and reliability in the sector. Both companies trust in the blockchain being able to bring more transparency into the uranium supply chain. The pilot project has already been initiated and is to launch later this year.
Insolar is looking further into the possibility of blockchain application in similar markets like iron ore. According to the companies calculations, the over-the-counter (OTC) deal cycle could be reduced from months to weeks, which would also cut down transaction costs by 40% a year.
The Insolar team hopes that the implementation of blockchain in the over-the-counter markets will help to solve such major issues as transaction price and speed, as well as the communication quality between the parties; also the lack of a transparent pricing mechanism and the accuracy and completeness of the input data.
“In the proposed system, parties interact within the platform to transact securely and seamlessly. Data from the trades is used to set a transparent spot market price and reliable forecasts without revealing the exact figures and sums of particular transactions. Smart contracts are applied to the data in the distributed ledger, improving automation of the deal signing process and guaranteeing that the deal follows the pre-agreed process.”
It should be no surprise that other industry pros are also researching the blockchain's capabilities. Who wouldn't want to save both money and time on their deals after all? IBM and MineHub have joined forces to develop a blockchain-based solution to streamline supply chain management in the mining and metals industry. Moreover, Tradewind Markets also launched a digital tool providing supply chain provenance to buyers and sellers of precious metals.