Blockchain technology is the latest and most disruptive innovation that has been unleashed on the tech scene over the past couple of years. While it is true that most people associate it with cryptocurrencies, it is important to note that the creation of cryptocurrencies is only a tiny part of the possible applications of blockchain technology. There is a range of functions that can be performed through blockchain technology and help industries with their day to day businesses.
Hence, it has not come as a complete surprise to see some of the biggest corporations in the world trying to incorporate blockchain tech into their operations and the latest company to go in that direction is oil giant shell. In a new development, Shell has invested in a U.S. based blockchain technology start-up LO3 Energy that is engaged in creating solutions specifically meant for the energy industry. However, it is interesting to note that in addition to Shell, Japanese behemoth Sumitomo Corporation Group has also invested. The financial details of the investment have not been disclosed by Shell. Considering the fact that two of the biggest companies in the world have invested in the company, it is perhaps a fair assumption that the product is promising.
The investment director of Shell Ventures, Kirk Coburn spoke about the investment. He said,
As we move into a less carbonized future, Shell aims to invest in innovative companies that will help enable the energy transition. LO3 Energy fits right in that space.
The technology being offered by LO3 Energy is interesting since it helps companies in tracking energy and its suppliers, which is why it is a kind of technology that could prove to be highly beneficial for Shell. As per the white paper with relation to this LO3 Energy blockchain tech, the tech is used to “facilitate the optimal coupling of local electric generation to parties that can value, procure, store and utilize this generation most efficiently.” It is definitely a form of technology that has a lot of promise, but perhaps it will be some time before it can be implemented in Shell’s day to day business.