For companies that drill for oil and gas, Data Gumbo provides blockchain smart contracts. Customers can use these smart contracts to secure the 10’s - 100’s of millions in savings available from improvements in rig and supplier efficiency.
A blockchain is a network of interconnected computers that provide an encrypted distributed ledger of transactions. One aspect of blockchain solutions is smart contracts. Smart contracts execute terms of a contract automatically. Automating execution of a contract removes all the “friction” from your business.
Examples: Regular Contracts: Encode the terms of an existing contract into a smart contract. Execute the smart contract automatically, when contract terms are met. This radically reduces the amount of reviews each invoice and payment requires.
Incentive Contracts: Encode the terms of an incentive contract into a smart contract, locking in the bonus and penalty terms based on actual performance. The contract guarantees the service provider is paid for improvements and the buyer only pays for services received and gains realized.
Resource sharing Contracts: Companies frequently utilize expensive resources such as ships and helicopters to deliver supplies to remote locations. Each company bears the expense of a separate fleet rather than pooling resources with competitors operating nearby. Previously, the complications of accurately measuring, allocating and billing the expenses prevented economical resource sharing. Not anymore. Smart contracts guarantee accurate execution of the terms of a sharing agreement.
In short, automating execution of contracts eliminates accounting expenses, time delays, inaccuracies, legal fees, mistrust and disputes. At the same time, it increases audibility and profitability. It aligns incentives of all participants towards a common goal.
Best of all, smart contracts do not require you to change any of your existing systems.