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Germany is looking for ways to reduce LNG costs with the help of blockchain

Blockchain technology not only ensures the transition to the “hyper-connected economy”, but predetermines its further development. The German government is now committed to implement the blockchain strategy adopted in 2019. The use of blockchain will also help solve the energy issues in the country. Uniper Global Commodities SE intends to use blockchain to scale up LNG operations.

Desmond O'Flynn

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This picture show a building in Berlin.

The German government is putting into practice the implementation strategy of the blockchain technology, which was adopted in 2019. Worth noting is that at the end of January 2019, the second largest stock exchange in Germany, Boerse Stuttgart Group, officially launched the Bison mobile application, which makes it possible to buy and sell Bitcoin, XRP, Ethereum and Litecoin, and unlike most crypto exchanges, without paying commissions.

According to this strategy, the distributed register technology is considered one of the most promising, and its application is ultimately associated with the development of “token economy”. That is why since the beginning of this year, in accordance with the directive of the financial regulator BaFin, German banks have been entitled to provide custody services in cryptocurrencies.

The use of blockchain technology affects not only the financial sphere of Germany. No less important is the application of distributed register technology in solving energy issues in this country. Thus, the local energy corporation Uniper Global Commodities SE decided to use a blockchain platform developed in cooperation with the company Wipro (India) to dramatically improve the efficiency of delivery and settlement processes for liquefied natural gas (LNG), even when it comes to small volumes.

From a consumer and supplier’s point of view, LNG benefits from being “in-line”, which means that it can be delivered in small quantities compared to those purchased for pipeline natural gas. However, this advantage must also be financially competitive, and it is the blockchain technology that has been bet on to achieve this goal.

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The partnership between Uniper Global Commodities Se and Wipro

Uniper Global Commodities SE and Wipro draw attention to the fact that transactions with small volumes of LNG entails a large paperwork, which can be significantly reduced by transferring all information to the blockchain. In addition, this technology will accelerate business processes, as it is planned to use smart contracts. Uniper Global Commodities SE intends to use blockchain to scale up LNG operations, when it is not necessary to hire new employees. Wipro, in turn, once again reminded that the blockchain allows companies to safely store information, as well as provide access to it in real time.

Analysts believe that the advent of the blockchain technology in the energy industry, as well as the emergence of projects such as Lition Energie, focused on working with end users, will eventually stimulate increased interest in the use of tokens as a tool to promote energy efficiency.

According to analysts, the blockchain technology not only ensures the transition to the “hyper-connected economy”, but also predetermines its further development. The fact is that the blockchain creates a unique opportunity for the interaction of various companies and individuals who operate in different countries and different sectors of the economy. This interaction creates a synergy effect that can significantly reduce the operating and overhead costs of any business. In addition, the emerging “large-scale interaction” enables all its market participants to better understand consumer needs and tailor their business to them.

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(Featured image by Couleur via Pixabay)

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First published in CLICK CHAIN, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Desmond O’Flynn believes in minimalism and the power of beer. As a young reporter for some of the largest national publications, he has lived in the world of finance and investing for nearly three decades. He has since included world politics and the global economy in his portfolio. He also writes about entrepreneurs and small businesses, as well as innovation in fintech, gambling, and cannabis industries.