Technological Solutions for Commodity Traders

Technological Solutions for Commodity Traders

The data collection is fundamental, so you need the technology if it is necessary for this collection, through the most diverse tools and platforms. But the crucial point is what you actually do with these Collected Data. Therefore, the analytical part is critical. And at the end of the day, what you do in trading is forecasting, and they are predictive analytics. We have always been in predictive analytics. We have used the power of the human brain in the past. But of course, more and more, you use technology to help you make better and more accurate decisions, do more predictive analytics, and make better business decisions later in the day.

For example: On the upstream front, complete changes in the way of drilling oil. When we drill today in Argentina, for example, we sent the main sample to Houston for analysis, and we get a lot more information that was already available before.
That is: We know where to drill and how to drill more efficiently.

 The other part is what is happening in the world of artificial intelligence. We have much more internal data through these systems. We have much more external data through these systems.

We have a very large increase in computer processing capabilities and obviously in the development of algorithms to identify different patterns. We're looking at this. We have a certain team inside the house that is then looking at certain specific ideas that we have in that area. And I can see this being a very important part of the trading mix. We did a test last year when we had a physical oil load from Africa to China. And we run the regular system with paperwork, bill of lading, and so on, and we did the parallel blockchain. And the regular documents needed 40 days to reach the destination. Well, in fact, the blockchain deal was essentially able to complete the same transaction from start to finish in four days. This will have a major impact on the requirement of a trading company and will undoubtedly reduce costs for the industry and make it more efficient.

VAKT is being created to create a blockchain-based digital platform that will truly modernize the post-trading conclusion of the commodity energy trading industry. Let's start in some selected markets with the goal of bringing something to the operation by the end of this year. From there, it can be scaled globally in 2019 and beyond.

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