Global energy leader British Petroleum (BP) has joined hands with an organization called “Blockchain In Transport Alliance” (BiTA). The BiTA organization works to develop best practices and standards for blockchain in industries like logistics, transportation, and supply chain.
BiTA is currently the largest commercial blockchain alliance in the world. Founded last year, BiTA has now more than 450 members generating $1 trillion USD in annual revenues.
Blockchain’s Role in Logistics and Supply Chain
The blockchain network is basically a distributed network of computers spread across the globe. Additionally, the unique feature about blockchain is that it is absolutely transparent and allows users to identify and track digital transactions throughout the network.
Blockchain technology has a huge application potential in the logistics and supply chain marketplace. The technology helps to connect all participants within the entire supply chain, together. Furthermore, it also facilitates real-time tracking of goods with absolute transparency and security. Hence, the user can get complete details of the product throughout its entire life-cycle.
Blockchain’s unique features, like smart contracts, can help to automate payment systems and create new revenue streams. Thus, with the help of blockchain, customers can manage fleets, track shipments, and complete transactions.
Additionally, blockchain technology can take better care of the insurance and compensation of transported and damaged goods.
BiTA and British Petroleum (BP) to Streamline Energy Industry Logistics
British Petroleum America said that it will share its expertise in the energy sector logistics with the BiTA alliance. It will also help towards developing new blockchain-based solutions for the energy industry. The two together aim to bring more standardization and efficiency along the supply chain in the near-term.
In addition to supply chain management, blockchain technology can also be useful in trade executions. Other areas of implementation include smart contracts, managing invoice processes, and breaking down data silos.
BiTA President Chris Burruss said,
“Blockchain can transform the supply chain by improving transparency and innovation. On behalf of the members of BiTA, I welcome BP America to the Alliance. Its size, scope and energy industry expertise will help speed the development of blockchain standards… Blockchain technology has the potential to improve performance within the energy industry and improve the experience companies using blockchain provide their customers. Alliance members are working together towards this important goal.”
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