Reliance Industries Energy Trading Company to Adopt Vakt Blockchain with $5 Million Investment
India has been in the news for its apparent uncertainly with crypto with words such as banning regularly discussed.
That has not stopped its largest conglomerate from exploring the possibilities offered by blockchain. It has been recently reported that Reliance Industries has invested about INR25,00,00,000($5 Million) into online-based energy trading.
Reliance Industries Limited (RIL), the holding company with interests spread across various fields ranging from petrochemicals to telecommunications and much more, has been looking at the possibilities to improve their productivity and efficiency. With that intention, this month, they have made an investment in Vakt Holdings Limited, a U.K.-based distributed ledger technology (DLT) firm.
Reliance And Blockchain
RIL, founded by Dhirubhai Ambani in 1977, is primarily focussed on exploration and producing gas and oil in the Indian subcontinent.The company had been looking into using the blockchain technology. That rumour was confirmed when the company purchased about 5.6 percent equity share in Vakt Holdings Limited.
As per sources, the industry titan had been looking at crypto with interest for a while and were keen on digitising their trading processes. They had a team actively studying the possibilities and challenges of using different technologies such as DLT, artificial intelligence and machine learning, and what would serve the company's needs best.
This culminated in their decision to use a blockchain based solution for the energy division of their empire. This is believed to be the first step in creating a secure ecosystem that will, eventually, be rolled out for the other arms of Reliance Industries.
Who Is Vakt
The $100 million start-up is UK based which has been formed by a joint effort of some of the most reputable companies. This blockchain venture was formed last year in December by a collaborative effort of nine major energy companies and banks. This includes the likes of Shell, Mercuria and ABN Amro.
After initial discussions in late this year, the platfrom was officially launched on the 2nd of December. Reportedly, this is the first of its kind in the oil and gas sector.
This DLT platform is to use the advantages afforded by the blockchain to focus on optimising processes of raw materials trading. To further enhance efficiency it will also convert all paper documents into a smart contracts based online repository. Thus mitigating associated risks and enabling cost-efficiency.
Whilst still in its development stages, Vakt is expected to b ready for use by next year, with member companies likely to get a first run by Q2. While the parent company RIL, will undoubtedly be making use of the platform for oil and gas trading, some of its subsidiaries, such as the Telecom arm, Reliance Jio, has also requested access to explore the possibilities of using the technology in its operations.
While many continue to look at crypto with suspicion and even disdain, the increasing acceptance and adoption by large businesses, the world over, shows promise. Many OPEC countries are looking at similar solutions to synergies technology and the oil and gas industry; while Venezuela is seriously considering switching over to Petro, their crypto currency. All this augers well for the future of this nascent technology.