GuildOne Inc. announced the first execution of a royalty smart contract using the company’s new Royalty Ledger application on R3’s Corda blockchain platform. The announcement was made at the Blockchain, IoT and Machine Learning in Oil and Gas Conference on February 14th in Calgary, Alberta.
Utilizing blockchain technology, Royalty Ledger successfully executed an oil royalty contract settlement and payment transaction. As a Proof of Concept, Royalty Ledger is the first implementation of a smart contract in the oil and gas royalty sector and was delivered together with NAL Resources Management Limited, PrairieSky Royalty Ltd. and ATB Financial.
James Graham, President and CEO for GuildOne, announced Royalty Ledger as part of his keynote address entitled Blockchain: Beneath the Hype the New Operating Model Emerges to conference attendees. “Distributed ledger and Blockchain technology have the potential to greatly minimize and ultimately eliminate resource and royalty-based disputes. The democratization of these tools to all the stakeholders and communities can increase fair and equitable production of resources while initiating a more efficient operation model,” says James Graham. Blockchain, artificial intelligence, and automation are empowering a digital transformation that is affecting a reorganizing principle for industry, government, academia and general society.
Wellington Holbrook, Chief Transformation Officer at ATB Financial says, “We’re proud to have supported GuildOne in applying Blockchain technology to a normally resource intensive process, thereby creating an opportunity for Alberta’s energy industry to realize on significant time and cost savings. This execution leverages our rapidly expanding Blockchain capabilities and underscores our commitment to supporting Alberta businesses.”
David Rutter, CEO of R3, comments: “Corda’s strength comes from its vibrant ecosystem of interoperable applications for finance and commerce. We are pleased to welcome GuildOne to our rapidly growing network of partners, harnessing the power of Corda to overcome the specific challenges faced by their customers.”
Digital assets, distributed ledgers (of which Royalty Ledger is one of) and smart contracts are impacting, or are about to impact, all levels of modern society. Business networks are forming – including oil and gas operators, producers, rights owners, banks, and government regulators – to improve the efficiency and outcome of energy industry contracts.
“This approach should primarily address any inconsistencies in interpretation of royalty rate and any disputes associated with this. This will significantly lower costs, improve efficiencies and improve the transfer of money in our industry,” said NAL Resources Management CFO Keith Steeves.
Projects are focused on eliminating dispute, enhancing collaboration, and ensuring transparency and completeness in oil and gas royalty transactions. Blockchain can help eliminate dispute – with tremendous potential for the increased equity, sustainability, and transparency in – and between – all nations and their citizens. Pioneers like GuildOne are helping to ensure that the power and promise of these technologies is applied to underserved communities and social groups, worldwide.