According to reports, in September 2017, the first petrol station to implement this idea was located in Hubei province, which allows for easy settlement of oil barrels with digital payments using Ethereum. You can visit the official trading site like this trading platform to develop advanced trading technologies and strategies to make your bitcoin trade profitable and worthy. Before blockchain technology became mainstream a year ago, it would have been nearly impossible to imagine gas stations accepting cryptocurrency as payment.
Many people might not know what cryptocurrency is or how it works today. Ethereum acceptance in the gas and petrol station is not merely revolutionizing the means of payment but also the ordinary supply chain system.
Progression and Innovations with Ethereum technology:
With the progress in technology and innovations, blockchain technology is powering many transactions and contracts. The first use case was to record property deeds, but it has two other applications in this industry. One such application is how property owners can have transferred without a centralized institution such as government or bank involvement.
Furthermore, one can transfer an asset without paying the massive fees that traditional banking systems have. It mainly involves the logistics and shipping segment, with an estimated cost of $ 2.1 trillion annually.
This investment is enormous and goes beyond a simple payment agreement upon delivery. There are also considerations such as insurance, credit and delivery terms. It comes when there is a need to exchange documents between different companies within the supply chain.
The Role of ethereum in traditional monetary system:
The usage of Ethereum for the petroleum industry has essential applications in terms of logistics & supply chain management. An intermediary party does not have to be present during transactions which lower the costs incurred from go-betweens, which can sometimes be substantial. All parties within a transaction can save on time, money and effort through this innovation.
The global oil & gas supply chain management market comprises stakeholders such as producers, suppliers, logistics & shipping service providers, refineries, marine and inland transportation companies, distributors & retailers and consumers. All these parties will have to join the blockchain platform to use intelligent contracts and benefit from cost savings.
Benefits of Accepting Ethereum as a Payment method at gas and petrol station:
A significant benefit of accepting Ethereum as a payment method at gas and petrol stations is that it allows for transparency. Therefore, customers can know what they will be paying for and receiving. In addition, it opens new doors for other value addition, creating a win-win situation.
Additionally, the new payment method will allow all parties involved in the supply chain to access advanced technology platforms like blockchain. It reduces time and expenses associated with paperwork while making transactions more secure and transparent. Merchants within the supply chain will also have a more efficient system of payments, increasing their efficiency in business operations by allowing them to carry out their transactions instantaneously.
How can ethereum blockchain technology transform gas and oil trading?
Through the blockchain technology implemented in gas and petrol stations, documents can have reconciliation more quickly. In addition, it will allow for a more secure supply chain, which is why there are huge advantages for the parties involved in the business.
Many oil companies report that many traders within their industry will significantly benefit from ethereum blockchain technology implementation in their respective industries. It is a computer protocol which allows for the immutable and programmable execution of business logic. Intelligent contracts will store and exchange information between parties involved in a transaction.
As a result, all parties involved in the supply chain market can also benefit from lower fees for international payment transfers compared to traditional banking processes, which can often cost up to 15%.
Ethereum resolving issues in the traditional supply chain:
Ethereum blockchain technology has resolved several issues within the traditional supply chain sector. The prospect where the ethereum blockchain technology platform excels is instant exchange settlement because it allows for faster transactions and paperwork automation.
Another advantage is better security for data, especially when it comes to sensitive information about buyers and sellers. Many reports from banks in the oil and gas sector show that there have been instances of fraud through outgas stations selling petrol with fake names and identities, resulting in lost customers.