Most promising projects in 2018

Oil and gas is sold in large volumes and as such entail significant value, not unlike the size and scale of transactions between banks. The frequency of transactions is also high; for example, a 300,000 barrel per day oil refinery will need to source a large crude carrier every week to maintain adequate volumes, and cargos can cost as much as USD 100 million (two million barrels at USD 50 per barrel). Oil companies also need to be aware of where crude is ultimately sourced. Some exporting nations are from time-to-time under sanctions to prevent trade in this commodity. Blockchain could provide a fully transparent and secure record of the entire supply chain. Using a distributed ledger, digital tokens can be used to represent the asset being transacted. These tokens can be issued by a trusted authority for the needs of the companies or participating parties; for example, if oil and gas companies used a blockchain ledger to buy and sell barrels of oil, transactions could include digital tokens named Brent or WTI. These tokens would represent the underlying asset of a barrel of oil and would remain digitally attached throughout its supply chain journey. Currently, around nine percent of crude oil transactions are disputed, which equates to around USD 150 billion each year. By using tokens in a blockchain, payment could be processed more quickly, paperwork such as title transfers would be eliminated, and disputed transactions could be significantly reduced. It is important to note that the token being exchanged will be subject to gains or losses based on the strength of the underlying fiat (local) currency. If 50 WTI tokens are purchased using US dollars, the value of these tokens are exposed to fluctuations in the US dollar. As the use of cryptocurrencies increases, governments are forming positions on the taxation implications of cryptocurrencies and their exchange for fiat currency.

Once an XPR is bought, it can be then liquidated via a the PermianChain Exit Facility or used by midstream companies to claim their rights for the associated barrels of crude oil from the PermianChain platform. Daily production by the suppliers determines how many XPR can be used to claim oil per day. Once an XPR token holder exercises her rights and the transaction order for the barrel is filled, the XPR token will be returned to Treasury and re-listed with new Platform Prospects upon listing Proven Reserves. Blockchain validates each transaction, rights claim and supplier fulfillment for security and transparency on the platform. Shipping logistics would be streamlined as well through the use of digital wallets. Each wallet is registered to a specific buyer and contains that specific buyer’s drop-ship location. Whenever XPR token is exercised for a barrel of oil, the blockchain protocol knows exactly where to ship the order and can calculate shipping / logistic cost to deliver the barrel to the designated location specified in the wallet. This would ultimately reduce cost and streamline business operations for upstream and midstream companies. Thus, increasing the value / price of each XPR, and providing immediate income for the supplier. This could have positive future developments that should potentially allow PermianChain to prove sources of oil and decrease corruption and smuggling of oil as a result of war-torn countries around the world. For the meantime, the PermianChain is a needed solution for the cash flow gap faced by oil companies and for oil producing economies to reduce their risks of deficits.