What type of Blockchain is usable in oil trading?

Oil trading is a complex and widespread business in the world. As the days pass, the oil demand continuously increases because every industry needs oil to continue its logistic services and other business activities. Therefore, oil trading is entirely dependent on demand and supply. A massive fluctuation in prices can be seen with a national event. Traders use the fluctuation in prices to earn good profits through oil trading. A professional trader uses market indicators, the right time to enter the market, and a suitable time to exit. Therefore, it is correct to say that oil prices are as volatile as cryptocurrency prices. If you are planning to earn profits by trading Oil, you must first invest in a reliable trading platform like Bitsoft 360.

The use of Blockchain in many industries is increased due to its multi-benefits like intelligent contracts, efficiency, and better security than traditional financial recording systems. None of the other financial systems can beat the security of Blockchain because it uses nodes to record transactions, and only verified by all the nodes of Blockchain is a genuine transaction recorded on the blockchain network. There are hundreds of nodes in a blockchain network, and each node holds the same kind of information recorded on the network. Cannot make alterations after recording the transactions because once the transaction is recorded on a blockchain network, it becomes immutable or irreversible.

Type of Blockchain used in oil trading

Public Blockchain

It is a type of Blockchain that can be used to perform mining. Public Blockchain is trustworthy and open and brings transparency to the monetary affairs of oil trading. And even out, we can view the recorded transactions on the public Blockchain as it recovers the transactions in an open public Ledger, which can be viewed with the help of some specific tools but cannot alter the recorded transactions. It also had a feature that was permissionless. Anybody can join it and record the required information. It is also a non-restrictive Blockchain Where each piece of information recorded on the blockchain network has a copy formed. The user of the Blockchain has access to historical data which are stored previously on the blockchain network. It is essential when oil trading has multiple partners. Because sometimes there is a need to look after the previous year's profits to compare the current year's profits. In a manual recording system, you cannot compare data easily. You have to find the recorded data manually, but in a blockchain network with a single tab, you can compare both ears.

The transaction recorded on the public Blockchain is immutable or irreversible because all the users openly use a single code. Therefore, anybody out of the multiple oil trading partners can check, Suggest and uncover the necessary alteration.

Private Blockchain

It is a blockchain network that is used by a single identity. It is used to record sensitive information where each user has a different code of the blockchain network. The transaction recorded on a private blockchain cannot be viewed by anyone outside us and has specific tools. For example, some oil traders want to keep their transactions private from other countries. Or do not want to display the data of their customer base or any other sensitive information; they use a private blockchain.

It is helpful for oil traders who want to keep their profit records private on a public Ledger. Also, a private Blockchain is a decentralized blockchain system with the same quality as a public Blockchain. Private Blockchain has limited use as it has far more small use. It is helpful to maintain a supply chain for oil trading, Asset management, and internal voting of a company.

Hybrid Blockchain

It is a blockchain with the feature of a public Blockchain and a combined feature of a private Blockchain. Through this system, oil traders can run a company with the features of a permissioned base Alongside the private Blockchain and a permissionless blockchain system with a public-based blockchain. In our oil trading business, there is always something that cannot display over a public Ledger, like Records, profit, and transactions, but due to both features, this can also be validated with the help of smart contracts.

Consortium blockchain

It is a Federated blockchain system, similar to the hybrid Blockchain, with the feature of both public and private Blockchains. A consortium blockchain system has a feature that different members from different organizations work on the same decentralized platform. To validate and record their oil trading transaction. This blockchain helps to track the oil trading, and it has a predetermined control of nodes that determine, validate, Initiate and receive the oil trading transactions. This Blockchain helps manage payments and track oil trading connections, Or researchers also use it to hold some sensitive information.

Final words

These are three types of Blockchains that are useful in oil trading. Each blockchain network is different in its sense, work, specifications, and multiple benefits. Through Blockchain, the manual recording system of oil trading becomes a thing of the past because It becomes easy to find historically recorded transactions.