Making the blockchain practical for both the oil and gas industry and crypto investors

The blockchain was first used to support that most practical of activities: buying a takeaway pizza. Since then it’s been through several development stages but, in many ways, much of this activity this has focused on cryptocurrency for cryptocurrency’s sake, with attention devoted on the highs and lows of the price of key currencies. That’s all well and good, but the blockchain also has the potential to become a useful tool to enhance wider economic activity.

During the first phase of its development the blockchain was a way of managing information about cryptocurrencies. These have demanded a lot of attention among both technology enthusiasts and the mainstream press, but it’s the blockchain’s implications for businesses that is more likely to lead to widespread adoption in the long term.

The bottom line is that trading cryptocurrency for cryptocurrency’s sake is a risky business, as we’ve seen several times over the last couple of years. As with any genuine market, there’s no reward without risk, but the value of the blockchain goes beyond creating novel currencies that can be traded.

The second phase of the development of the blockchain saw it become a tool for small, innovative companies that needed to attract funding. Again, there was both risk and reward in this approach, but the addition of the blockchain hasn’t appeared to particularly enhance the success rate of start-ups in any meaningful way.

Making it easier for the industry to operate…

As the third phase gains momentum, we continue to learn and adapt the blockchain to make it possible to do more things. In the case of PermianChain we have used the blockchain to make it possible for investors to take part in the oil and gas sector at a far lower entry point than has been possible using the traditional model. This practical phase is where the true value of the blockchain will be realised.

We’ve created a mixed strategy that solves issues for both the oil and gas sector and its investors. It has three aspects:

1) Oil and gas exploration and production companies can tokenise and trade their reserves, helping them create a market, and as a result realise value, far earlier in the development of a project

2) Individual investors can trade these tokenised assets, creating an opportunity to add oil and gas to an investment portfolio without having to face the traditionally high financial barriers. It is an opportunity to diversify a portfolio

3) For everyone involved in the oil and gas sector, PermainChain’s strategy will bring transparency across the entire process from ground to pump or plug

…and the rest of the world to participate

We have created a platform that takes advantage of the blockchain’s potential and moves it beyond being a system that exists for its own sake. PermianChain adds genuine value not only for the industry but for potential investors. Our approach removes the need for brokers, reduces reliance on extensive bureaucracy and is calibrated in a way that will make it simple to take into account changing regulatory expectations.

There are broadly two forms of potential investment participant: those with oil and gas experience but are new to a blockchain environment, and those that are comfortable with blockchain but have never had the opportunity to access the oil and gas sector.

We have calibrated the PermianChain platform to suit both kinds of participants because we believe that attracting both kinds of investor into a single environment will deliver the most liquidity, and benefit for the sector and those that invest in it.

If you would like to find out more about the PermianChain platform, come and visit us at www.permianchain.com and register your interest in our demo platform.

PermianChain Technologies is a pioneer member of the Blockchain Research Institute. PermianChain is investigating ways to harness the power of blockchain technology, data science and artificial intelligence to digitize, tokenize and monetize proven but undeveloped natural resources, starting with oil and gas. The PermianChain, which already has secured oil and gas reserves to be listed on its platform, intends to unlock liquidity to revolutionise the way that oil and gas reserves are funded, produced, bought and sold on a permissioned-access blockchain. The firm is currently in the process of applying to for its regulated digital securities trading and investment platform.