Data Gumbo – A Blockchain Network for Industries

The Kingdom of Saudi Arabia isn’t what it says on the tin. We shortly realized that over a number of weeks within the nation meeting with technology startups and native Saudis who’re overwhelmingly pleasant in the direction of guests. Like any nation, there’s the great and the dangerous. The roads are a few of the most dangerous in the world to drive, and that’s not simply because they’re full of girls drivers now. Our feminine Uber driver speculated it’s as a result of the nation is a melting pot of cultures who all drive in a different way, and plenty of immigrants have by no means pushed earlier than.

Gone are the spiritual police and necessary gown code for the women. The nation’s youthful ruler, MBS, is all about making the nation a vacationer vacation spot. (The Saudis not too long ago held one of many largest music festivals within the area – the MDL Beast Festival – with 400,000 attendees.) While tourism could also be stalled now attributable to “the Rona,” the Kingdom remains to be investing closely in one other {industry} they wish to diversify into with their ginormous stash of oil {dollars} – know-how. One of their current tech investments is an organization known as Data Gumbo which hopes to construct the biggest industrial blockchain community on the earth.

Smart contracts, powered by blockchain know-how, are pioneering a brand new method to business relationships.

Data Gumbo

About Data Gumbo

Founded in 2016, Houston, Texas startup Data Gumbo has taken in a complete of $15 million in funding to develop GumboInternet, “a massively interconnected industrial blockchain network that delivers transactional certainty to business relationships.” Built from the bottom up, their blockchain answer is right for heavy industries like oil & fuel, building, and mining. It’s no shock that Data Gumbo’s first goal {industry} is oil & fuel, not as a result of they’re headquartered in a state with greater than 187,00 oil wells, however as a result of that’s the founder’s forte.

Data Gumbo Founder and CEO, Andrew Bruce, involves the desk with in depth expertise innovating within the power {industry}, He created the NOVOS product, a first-of-its-kind semi-autonomous drilling system, after which he based Data Gumbo after recognizing a possibility to eradicate a large price inefficiency between an oil supermajor and one in all its suppliers. Having contacts within the power {industry} could also be what helped him convey on two notable traders with deep pockets. Lead traders for Data Gumbo embrace Saudi Aramco, the world’s most worthwhile firm, and Equinor, a Norwegian state-owned multinational power firm with 2019 revenues of $64 billion.

Investors don’t simply convey cash to the desk, they’re typically a startup’s first consumer. Earlier this summer time, Data Gumbo confirmed a number of the world’s largest oil corporations their capabilities by efficiently finishing the primary industry-wide use of a blockchain-native community for produced water haulage.

Blockchain for Oil Wells

Blockchain For Energy is a consortium of oil and fuel corporations that features names like Chevron, ConocoPhillips, Equinor, ExxonMobil, Repsol, and Shell. Together, these corporations have recognized dozens of use instances within the oil and fuel {industry} for blockchain know-how. The profitable completion of its first pilot leveraging blockchain know-how was a GumboInternet implementation at 5 of Equinor’s oil wells within the Bakken discipline of North Dakota.

The life span of an oil nicely is predicated on the lively years the nicely is producing, and that common is between 20 to 30 years. Most individuals most likely don’t know simply how a lot water may be produced by oil wells (it’s conveniently known as produced water), all of which must be disposed of as industrial waste attributable to its excessive salinity. There are corporations that do nothing however haul water from oil wells and eliminate it, and that course of is the place Data Gumbo utilized some blockchain-powered automaton – from discipline studying to bill fee. As every truckload of water was disposed of, the platform was recording the occasion, and issuing an bill for the service. The impression of this new course of reveals simply how dangerous the outdated course of was.

The image’s a bit blurry, however let’s respect the poor advertising intern who spent two weeks creating it – Credit: Data Gumbo

Numbers don’t lie, at the very least not if you’re utilizing a distributed ledger. The course of workflow used to take 90-120 days to finish. With GumboInternet, it takes simply 1-7 days, and requires zero handbook intervention. The consequence was a 25% – 35% reallocation of sources versus present enterprise course of for operator and trucking firm.

The produced water haulage use case is only one of many recognized by Data Gumbo which believes that blockchain needs to be part of any new nicely construct. Smart contract administration alone can have a noticeable impression to the underside line when utilized at scale.

Smart Contract Management

In our previous piece on Using Blockchain for Commercial Real Estate, we talked about how digitally signed good contracts utilizing blockchain know-how can mechanically execute transactions. Once a sensible contract is issued, invoicing and funds may be automated. That’s a compelling worth add when you think about that good contract administration can enhance profitability by up to 9% of annual revenues.

As robust instances befall the oil {industry}, we’re fearful our two power dividend champions – Chevron and Exxon Mobil – gained’t be capable of proceed growing dividends. All oil corporations are most likely hurting proper now, and any know-how answer that saves cash will probably be welcomed with open arms, particularly when there’s no setup charge and implementation takes simply 90 days. For giant capital-intensive corporations which might be extremely regulated, traceability and transparency will probably be welcomed by senior managers who can at all times use some extra CYA.

Conclusion

In our previous article on real estate blockchain startup Othera, we discovered how the corporate’s founder spent 5 years chatting with greater than 500 corporations working within the residential mortgage market to determine what issues wanted to be solved with blockchain. Having area experience appears critically necessary to getting a blockchain startup off the bottom, and Data Gumbo seems to have a lot.

Blockchain began out as an answer searching for an issue. Like each different disruptive know-how, distributed ledgers had been hyped to the moon earlier than everybody forgot about them to give attention to buying worthless initial coin offerings. Today, blockchain is slowly climbing up Gartner’s Slope of Enlightenment as area specialists are swiftly executing underneath the radar to deal with large issues in industries the place change is sluggish and also you want some actual contacts to get issues accomplished.

We’re presently holding two power shares – Exxon Mobil and Chevron – in our 30-stock dividend progress portfolio. While each shares have been crushed these days, our funding on the earth’s largest renewable power has profited handsomely. Find out which inventory that’s in “The Nanalyze Disruptive Tech Portfolio Report,” now out there for Nanalyze Premium annual subscribers.

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