Does crude oil trading need blockchain? Let's see what this energy trading executive has to say.

【CryptoWorld】Is traditional oil trading relying on political promises to protect investments? The risks are significant. A senior energy trading executive recently pointed out the core issue—political guarantees are simply not strong enough.

His innovative approach is quite interesting: using blockchain tokenization technology. How does it work? Establish a transparent “trust layer” for each barrel of crude oil, track ownership changes in real-time, and embed automated smart contracts to ensure compliance. This way, oil trading shifts from a purely political game to a verifiable, programmable asset transfer.

Data shows that recently, some countries’ oil sales prices enjoy a 30% premium. It sounds good, but this premium is actually quite fragile and can evaporate with a change in policy direction. Instead of betting on politics, it’s better to play with technology.

Another detail worth noting is the inclusion of an “environmental cost” premium in the price of each barrel of oil. This money is earmarked solely for environmental restoration projects, promoting sustainable development and helping foreign companies shed indefinite environmental responsibility burdens. In other words, environmental costs are settled directly within the transaction.

This approach combines blockchain’s transparency and programmability with the practical needs of energy finance, and it’s worth the industry’s serious consideration.