Gazprom is arguably the world’s largest supplier of gas, with direct pipelines to the beating heart of Europe. In a bid to make its business operations more efficient, Gazprom is teaming up with Gazprombank to develop a blockchain based system that will track gas supplies and automatically fulfil orders using smart contracts. Thanks to the immutable nature of blockchain technology, neither Gazprom or the recipient will be able to change the supply contract agreement without consensus being achieved between the two parties. Gazprom already ran a pilot program to test how the new system would work, with the pilot being overwhelmingly successful.
Driven by Data
As with most new blockchain systems, the fine-tuning and detailed system plans are kept under wraps, but we know enough about the pilot scheme to get a feel for how the new system will work. In the pilot program, gas transport equipment was fitted with RFID tags, which linked up with a satellite that tracked a range of data – including speed, number of stops, duration of stops, and delivery time. The new system is likely to include more data that will allow for payments to be executed automatically via smart contracts to help make the entire process more efficient.
Gazprom is Big on Blockchain
In December 2018, Gazprom’s banking arm – Gazprombank – announced that it was working on a cryptocurrency trading platform, set to launch at some point in 2019. This would be a landmark move for the crypto trading world as Gazprom is state-owned – meaning the crypto exchange would ultimately be controlled by the government. Whether this is a good thing or not is still yet to be seen, but we are expecting a large amount of centralization to take place.
Efficient Aircraft Refueling
Gazprom has some experience when it comes to tracking the delivery of its products using blockchain technology, and it will come in handy with this new ambitious project. In August 2018, Gazprom Neft teamed up with the airline S7 to put refueling and payments on a blockchain. The blockchain platform works similarly to a gas pump that you or I would use at the gas station, whereby planes are refueled on demand and the bill is settled there and then using smart contracts. This helps to remove millions of dollars’ worth of risk from the entire process, saving both Gazprom Neft and S7 a lot of hassle.
Gazprom and Russia are running full steam ahead into the blockchain industry, and they are reaping the rewards. Gazprom is a clear cut example of how blockchain technology can make companies more efficient and profitable.