A new software based on the Hyperledger Fabric blockchain was launched for commodities trading for the gas industry.
EnHelix Marketplace was unveiled at the Gastech energy conference in Singapore, company executives told CoinDesk.
The software streamlines commodities trading with applications supporting every step of the process — pre-trade KYC, trade execution and post-trade risk management – while automated systems and smart contracts make these energy trades faster and more organized for users.
“When you encapsulate commodity trades in blockchain smart contracts, you essentially increase the speed of your trading activities, avoid data reconciliations and messy data interfaces,” an EnHelix representative told CoinDesk.
Blockchain’s tech advances don’t fit naturally into the commodity trading, where brokers still rely on informal channels such as instant message to negotiate deals – “and that’s not going to change,” the representative said.
These tools provide the flexibility and mobility they need.
Enhelix’s blockchain solutions for the oil and gas sector comprise three major systems, Marketplace, Logistics and Settlement. Their Marketplace blockchain is for energy and commodity firms to transact “using smart contracts in order to reduce paperwork and reconciliation for post-trade and order operations;”
The EnHelix Logistics Blockchain was “created for midstream, cargo brokers, and logistics companies to streamline their scheduling, nomination, and billing operations” via distributed ledgers. The EnHelix Settlement Blockchain is a “fin-tech system for all oil and gas, energy, commodity businesses to process, audit, and track all payments and fees.”
The efficiencies by the Houston-based energy specialists have attracted interest from 50 industry players, the company said, including consulting firm Flexera Global.
David Olson, Flexera COO, who has followed the oil and gas technology markets throughout his career, told CoinDesk that these types of commodity transactions have “a lot of room for errors, omissions, and latency – not to mention nefarious activity,” that EnHelix’s blockchain system addresses.
“Where there are multiple parties, that require trust and verification on a secure, permanent record that eliminates double counting and provides one accurate record of ownership or transfer details – EnHelix delivers.”
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