Blockchain Solution For European Barge Market Planned By VAKT, essDOCS

VAKT, a blockchain platform for post-trade energy, has singed a memorandum of understanding (MOU) with paperless trader solution provider essDOCS.

Launched as an independent firm in December 2017, Vakt is a blockchain-based post-trade processing platform. The platform, which went live in November 2018, aims to digitalize the paper-backed processing of physical commodity deals using blockchain technology. It is backed by energy majors BP, Shell and Statoil; trading houses Gunvor, Koch Supply & Trading, and Mercuria; and banks ABN Amro, ING and Societe Generale. Other Vakt investors include Chevron, Equinor, and Reliance Industries.

essDOCS’ solutions digitize and automate paper-heavy processes, including online creation/approvals/management of all export documents (CargoDocs DocHub), data extraction and structure from paper documents and back-office automated checks (CargoDocs Auto-Document Processing), end-to-end eDocs management for key trade documents such as electronic Bills of Lading and Warehouse Warrants (CargoDocs DocEx) and application/issuance of electronic Certificates of Origin (essCert).

The two companies will be working closely together to develop a blockchain-based solution that will digitalize post-trade processes in Europe’s barge market.

“The combined VAKT-essDOCS solution allows that process to be handled entirely digitally, speeding it up, reducing the scope for error and cutting costs,” essDOCS said. “By working with VAKT, the key shipping documents (and data) can then be added to the immutable, tamper-proof blockchain platform, offering an easily-retrievable single source of truth for all parties involved in the transaction.”

essDOCS CEO Alexander Goulandris said that while their initial focus is the North-West Europe tank barge market, they are also exploring additional global markets where eDocs are key to full digitization.

“At its core, Vakt is a multisided platform that allows the various parties in a physical energy transaction … to exchange information securely and seamlessly,” Vakt CEO Etienne Amic added. “There are not that many well-conceived solutions allowing these documents to be passed safely in a digital form within current legal constraints. It was therefore a very natural step for us to enter into a collaboration with essDocs, who have been developing solutions in this field for a number of years.”