- March 31, 2020
- Posted by: Andreas
- Categories: Altcoins
As we have recently pinpointed, Vechain’s list of partnerships is pretty long and impressive. Among those has long been Shanghai Gas, the company responsible for 90% of the energy market in Shanghai. If you’re wondering, Shanghai has a population of 25 million people.
The deal was struck to build a trust-free Energy-as-a-Service ecosystem. The aim of the deal is to optimize business processes, reduce operation costs and improve the data collection mechanisms.
LNG is considered a clean and environment-friendly source of energy. The Chinese market is one of the leaders in the world in terms of demand for natural has.
As a direct result of that, the National Development and Reform Commission (NDRC) of China included promoting a need for a natural gas market reform in its last 5-year plan. The reasons lie with problems regarding sharing information. This has resulted in difficulties with price control, fair access to third parties, etc.
Blockchain technology aims to provide solutions for:
- An imbalance between supply and demand
- A better pricing mechanism
Shanghai Gas and ENN Making Moves
In 2018, Shanghai Gas, along with ENN and Vechain kick-started their pilot project. Since then, in 2019, the Chinese Government reiterated the necessity of using blockchain technology in the industry. The projects quickly moved from a phase of innovation to implementation in order to provide value in real-life business.
As a result, Shanghai Gas decided to move into the next phase of transforming the business model into one that incorporates the VechainThor blockchain. The pilot, or PoC phase is already completed with a satisfactory outcome.
Scope of the Project
The first phase of the Vechain & Shanghai Gas collaboration sees writing data regarding the quality of LNG in the storage tanks onto the blockchain. They are utilizing Vechain’s ToolChain in order to do so.
The benefits for Shanghai Gas are as follows:
- Eliminating informational barriers in the supply chain
- Making the whole process transparent
- A trustworthy database for LNG risk management
Shanghai Gas is not the only party involved here. It encompasses all the contributors throughout the whole supply chain, including suppliers.
Want to know more about Vechain? Turn to our overview of Vechain (VET).