A Comprehensive Study on Blockchain Adoption for Improved Transparency and Efficiency in Petrochemical Industries

Abstract

Basically, Petrochemical industries comprise of multiple know-how owners, suppliers, and end users throughout the industry supply chain system and rely on extensive network to bring their products and services to competitive markets. Each supplier maintains their ledger in compliance with their policies and procedures separately. As a result, most business transactions are inefficient, expensive and vulnerable. Inefficiencies result from the duplication of a single contract by each participant in the supply chain. In fact, the time it takes for each participant to record and reconcile transactions can slow down the flow of capital and revenue recognition throughout the entire supply chain. Nowadays, the petrochemical industries are facing challenges due to crude oil price volatility, and complex financial situations. This, in addition to the high cost of upstream industry developments, coupled with downstream efficiency Challenges. Therefore, petrochemical industries are gradually shifting toward intelligence and digitalization for attaining high KPI’s. The petrochemical industries are facing challenges in this era. Due to crude oil price volatility, the high cost of upstream industry developments, coupled with downstream efficiency challenges forces downstream companies to reduce costs. Therefore, strategy modification is needed in how such companies conduct business transactions economically and efficiently. The application of Block chain technology has been developed recently to deal with strategy modifications and how such companies conduct business transactions & data security economically and efficiently. The industry network structure connects suppliers, partners, distributors and customers, and operates across geographies and regulatory boundaries.