Blockchain Applications In Energy Trading

Picture a trade floor five years in the future. The robotic trader managing one of the gas desks is about to execute a physical natural gas trade with an industrial customer. One of the robot’s trading algorithms scans available market interest and optimises its search for the best deal to meet the customer’s volume and tenor requirements for a given period. Once the robot’s proposed deal terms are approved by the customer, the trade is executed and recorded on the blockchain. The deal terms are automatically confirmed and nomination information is recorded on the blockchain and available to the pipeline shipping the gas. As gas flows throughout the month, physical settlement occurs daily with payment initiated immediately. All activity added to the blockchain is readily available to the seller, buyer, pipeline and bank. Physical title of the gas is also conveyed directly via the blockchain.