An issue/challenge to address:
Conventional infrastructure challenges and limitations in monitoring, operating and maintaining a massive number of assets.
The procurement, shipment, installation, establishment, and repair activities of oil & gas assets involve different subcontractors, requiring compliance with safety regulations.
Top 4 expectations from blockchain-based platform/solution:
- Up-to-date asset inventory records.
- Processing of purchase and sale requests, based on equipment supplier scores representing their reputation.
- Allow the detection and prevention of fabricated, uncertified, or insufficiently performing equipment that does not meet standards.
- Minimizing the equipment costs, field staff safety issues, and service interruptions.
Suitable Blockchain type:
Consortium Blockchain: Also known as federated blockchain.
- It is not owned and used by one sole organization or group. Multiple organizations can exist on a single federated blockchain, allowing them to share data across the network privately and securely. Every pre-authorized user within a federated network also has equal control as the next.
- Asset life-cycle management requires high scalability – so, a consortium blockchain is preferred, with authorized organizations taking part in the validation of new blocks.
Suitable Consensus Mechanism:
Proof of Authority (PoA) – Identity as a Stake: A system in which the actors put their identity (read reputation) into stakes.
- Validators provide their official identity, recognized in real life. Blockchain will therefore be able to obtain real, truthful data.
- Requires minimal computational effort and does not need specialized equipment; PoA platform is quite cheap to run and maintain. (Energy consumption and operational cost aspect)
PoA system is based on a limited number of block validators; thus, allowing the network to reach consensus quickly. The transactions are confirmed in less than 1 second (transaction speed aspect). Because of this reason, PoA systems are more scalable.