China had been the stuff of crypto headlines for months after implementing a strict crackdown on all-things-crypto. It banned all crypto exchanges and mining hubs, and even disabled access to all crypto-related websites in the country, be it foreign or local.
The Chinese government dislikes cryptocurrencies, but it doesn’t mean that it’s also anti-Blockchain, the technology behind digital coins. In fact, it was the first country to export gasoline with the help of Blockchain technology.
China-based Sinochem Group, the leading chemical, energy, and financial provider in the country has just completed a shipment of gasoline using the innovative technology.
According to reports, one of their 300 subsidiaries, Sinochem Energy Technology, had exported gasoline from Quanzhou to Singapore using Blockchain technology, a surprising feat from a company coming from a country that’s known to be a staunch advocate against cryptocurrencies.
This marked an important step in the widespread adoption of Blockchain as it showed that the technology could be used in practical applications that can make various processes easier.
Surprisingly, the company denied reports that it was the first time the Blockchain was used to facilitate such shipments. A statement released by Sinochem said that the first Blockchain-powered shipment was carried out in December 2017 when crude oil was imported from the Middle East.
The company also stated on their website how the Blockchain could significantly decrease the financial costs of their operation. They said that the use of Blockchain technology during the shipping of goods to different countries could save 20% to 30% of costs, implying that it’s a necessity for all shipping companies.
The Blockchain has been one of the main focuses of the Chinese government over the past year. It’s said in the reports that the Blockchain can greatly improve transparency of various transactions in the Chinese petrochemical industry. This will also improve risk management measures and create a safer environment for companies like Sinochem.
China has become one of the biggest importers of crude oil in the world. Economists believe that this is one of the reasons the country might soon overtake the U.S. economy. With this, it makes sense for China to implement a cost-effective shipping method that will benefit their economy in the long run.
It’s true that paper-less trade had been around for a while, and the process is facilitated electronically with the help of the internet. However, this method comes with a security risk, and bad actors can access sensitive data.
That, however, won’t be a problem if they’re going to use digital ledger technology. The Blockchain has a decentralized network which is only accessible to its participants. This completely disables access by external parties.
In line with this, Deloitte, a professional services firm, had partnered with DNV GL on a campaign which aims to develop a method to track products and certificates in a shipping vessel. The company wanted to create a new method due to the increasing incidents of forged documents from scammers. IBM and Maersk also collaborated with the aim of using Blockchain technology to ship products around the globe.