Modernizing operations is crucial for businesses to thrive in a digitized world. Keeping pace, India’s petroleum giant, HPCL, has jumped on the blockchain bandwagon, redefining its operations. Here’s a critical look into why HPCL made this move and what it means for the world of oil and gas.
Blockchain: Beyond the Buzz
Blockchain technology, often buzzed about in the realms of cryptocurrency, is making its mark beyond just decentralized money.
At its core, blockchain offers transparency, security, and automated verification processes – traits that businesses across sectors find incredibly attractive.
HPCL, India’s premier state-run refiner, realized the potential of these traits. The company has embraced blockchain tech not for digital currencies but for streamlining its purchase order (PO) system.
They’ve now incorporated a system where POs no longer require manual vetting, a task tedious and prone to human errors. This new method allows HPCL to dispatch digital POs to its vendors, ensuring smooth operations and transparency in transactions.
Furthermore, this eliminates the burden for third-party verifiers as they can now directly confirm the validity of these POs via the HPCL vendor portal.
The decision wasn’t made overnight. This significant transition stems from a six-month collaboration with Zupple Labs, a firm specializing in blockchain software.
Dubbed ‘LegitDoc’, this tech marvel by Zupple empowers HPCL to revolutionize its traditional PO system.
With 3,000 POs reportedly issued via this system as of mid-October 2023, it’s evident that HPCL’s adoption of blockchain isn’t just a fleeting experiment but a determined strategic move.
Diving Deeper: The Two Parallel Blockchains
Understanding the “why” behind a decision often necessitates understanding the “how.” Interestingly, HPCL’s venture into blockchain isn’t restricted to a single blockchain platform. Instead, they’ve got two in play.
Neil Martis, the co-founder, and business lead at Zupple Labs, shed light on this choice. HPCL’s blockchain-based PO system operates on both private and public blockchains.
The public blockchain in question is the ‘Near blockchain’, while the private one is the ‘Hyperledger Fabric blockchain’. This dual approach isn’t just about redundancy.
The private Hyperledger Fabric blockchain also serves a critical function in HPCL’s Business Continuity and Disaster Recovery strategy. By diversifying their blockchain platforms, HPCL exhibits a calculated risk management strategy.
While most companies would be content with adopting a single blockchain system, HPCL’s decision to run two parallel blockchains showcases its commitment to ensuring smooth operations, even in potential crisis scenarios.
HPCL’s foray into blockchain tech is a clear testament to the technology’s expanding horizons. It’s not just about cryptocurrency; it’s about leveraging the core strengths of blockchain to revolutionize traditional systems.
As HPCL steps into this new chapter, it’s essential to be critically observant. While the immediate results seem promising, only time will tell if this decision stands as a pioneering move or a lesson in the intricacies of adopting new technologies.