Applications that allow many parties to deal directly via a peer-to-peer network without a need for a central authority to oversee transactions can be created using blockchain technology. There is no one network owner, and each network participant has access to a shared ledger that records all transactions in an immutable and cryptographically secure manner.
Supply chain businesses can use blockchain to document production updates to a single shared ledger, providing total data visibility and a single source of truth. Companies can access a product's status and location at any moment because transactions are constantly time-stamped and current. By doing so, problems like fake goods, noncompliance, delays, and waste are lessened. Additionally, the ledger audit trail ensures regulatory compliance and allows for quick response to situations (such as product recalls). Moreover, supply chains can automate monitoring the circumstances of production, transportation, and quality control by blockchain.
The purpose is to manage the exploration, production, and supply chain and examine the possible benefits and applications of blockchain technology. The benefits that logistical operations in the oil and gas sector can provide are traits of traceability, immutability, transparency, and audit in a reliable, secure, and decentralized manner.
System Security Requirements-
The suggested blockchain-based traceability system should adhere to the following security standards;
- Data Accessibility - The system should be open to all users as a design that supports the source traceability of the product, and anybody can access the system to query product source data.
- Data Immutability - The system should be tamper-proof and impossible to alter in order to provide the public with accurate and trustworthy product source data.
- System Autonomy - The system should have a set and predictable algorithm for all data exchange. To avoid human interference, all nodes can share, record, and update data in a trusted environment.
- Resistance to Man-in the middle Attacks - The decentralized nature of the blockchain makes the system's nodes mutually unreliable. The system should therefore be able to fend against man-in-the-middle attacks and stop malevolent nodes from counterfeiting transactions.
The enterprise entities, customers, and regulators in the supply chain are primarily included in the blockchain-based traceability system outlined. These parties are linked by a decentralized network. The Ethereum account that corresponds to each node in the network serves as a representation of that node's identity within the system and can be used to deploy smart contracts. The four business types that make up the supply chain are suppliers, manufacturers, distributors, and retailers. Additionally, each network node's distinct duties and functions are outlined below;
- Suppliers - The supplier gives raw materials to the maker and is the proprietor of such materials. In order for the consumer to track back to the source of the raw materials used to make a particular product, the supplier should register raw materials as the source of goods in the system. Each raw material ought to have a special code, just like the product.
- Manufacturers - The supplier sells the manufacturer raw ingredients, which the manufacturer then processes to create the products. At the same time, the manufacturer provides the distributor with goods, which the distributor then sells all over the world. The manufacturer is in charge of compiling the product's details and registering them in the database because they are the rightful owners of the item. The product has a unique code.
- Distributors - The distributor's primary responsibility in the transfer of products from the manufacturer to the final customer is to change the direction in which the flow of the product is going so that the product information is not interrupted during the traceability process.
- Retailers - The retailer, who is a participant with direct trading contacts with consumers, buys goods in batches from the distributor and sells them to customers in retail.
- Consumers - The person who ultimately purchases and uses the goods is known as the consumer. He has the option to join the network as a lightweight node, which allows him to realize the process of product traceability by querying the data that is permanently recorded in the block, or as a complete node, which allows him to maintain the blockchain ledger data together.
- Regulatory Departments - The blockchain is particularly transparent because all nodes can access its data. As a result, the regulatory department can monitor product dynamics in real-time, remember when safety or quality issues arise in the product, and rapidly and effectively address difficulties.
Blockchain specifically helps to secure and streamline the trade of oil and gas, shipment tracking, inventory control, documentation, billing, and payments. By bringing transparency to the relevant business processes, it streamlines the cumbersome and complex oil and gas supply chain operations.
- Pipeline Monitoring and Leak Detection - Gas pipeline leaks may be precisely detected using blockchain technology, which also protects the pipelines' integrity. It can help in confirming that the stakeholder organizations engaged in pipeline monitoring, leakage detection, and servicing comply with the rules governing human safety. Oil and gas firms can use this data to precisely pinpoint the site of a pipeline leak by using smart contracts built on the blockchain. Smart contracts built on the blockchain enable notifications to be generated instantly and transmitted to pipeline operators in the event of a leak, along with disclosing the position and identifier of the leaky pipeline for the proper servicing. Additionally, on the blockchain network, the services offered by the pipeline operators to the leaky pipes as well as the reason for the leak can be clearly documented.
- Tracing and Tracking of Oil and Gas Shipment - Blockchain technology is immutable by external events due to its decentralization. All modifications and ownership changes that occur while oil and gas-based items are being shipped are promptly recorded on the blockchain as soon as they leave the organization. These records can be used to prove the data origin of items based on oil and gas and to spot scams involving those products.
- Automation of oil and Gas Exploration and production - E&P companies frequently enter into agreements to search for, drill for, and produce oil and gas with a number of external stakeholder organizations. The relevant organizations may share updated data in real-time regarding the processes, outputs, and potential difficulties in the oil and gas E&P phase because blockchain gives a single, consistent, updated, and unified view of transactions and records. Based on the equipment usage rate, blockchain technology enables businesses to automate payments to offshore enterprises as compensation for their services in a quick, transparent, and reliable manner.
- Simplifying Billing and Payments - The oil and gas firms can use the traceability and transparency aspects of blockchain technology to help them confirm that the payment of a company was sent, received, and updated accurately by the appropriate entities. It helps the parties involved ensure that the companies' payment-related operations completely comply with the rules stated in the contract.
- Regulation Compliance and Accountability - Blockchain technology can help government agencies and authorities check adherence to stated norms to protect people and the environment. Using a blockchain-based system, oil and gas regulators or ordinary people can track the journey of crude oil from the well to the wheel of a car. By safeguarding the trade records, blockchain technology improves The trust the trust of the oil and gas dealers
Product Traceable Functionality
- Contract Deployment - The system manager publishes the contract address and installs the PRC contract to the blockchain. When the register() function and addBatch() functions are used, the BAC contract and the TUC contract are immediately deployed by the caller's account.
- Raw Material Registration - The supplier is responsible for all aspects of the raw material registration process, including the registration of raw material and production batch information. Raw materials are a type of product, and as such, they have a special code, name, and other details that are identical to those of the product.
- Raw Material Procurement - The supplier and the manufacturer work together to purchase the raw materials. That is, the supplier verifies the delivery and the manufacturer certifies the receipt once both parties have come to an agreement.
- Product Registration - The producer is responsible for carrying out the product registration process, which includes batch and product information registration.
- Product Distribution - The product registration procedure, which includes batch and product information registration, is the producer's responsibility. After both parties reach a consensus, the manufacturer will upload the transaction information to the contract.
- Product Source Querying - The consumer has the option of joining the network as a full node or a lightweight node. Only the product code and batch number can be used to query all transaction histories for the purchased product.
Revolutionizing the Supply Chain
- In the supply chain, blockchain technology offers a solution that enables the traceability of product origin. Participants in the system, such as suppliers, manufacturers, transporters, and end customers, may access this information, which promotes confidence between them.
- Blockchain-enabled accurate product monitoring in product supply chain management enables participants to anticipate various chain difficulties and take relevant action.
- Blockchain provides scalability, enabling global access to any large database from numerous places.
- Supply chain management using blockchain technology can help minimize errors, prevent product delays, stop fraud, and boost consumer and supplier confidence.
- In addition to identifying and preventing false transactions and product origins, as well as efficiently tracing supply chain operations, blockchain also makes it easier to execute paperwork.