Hi Daniel, Hi Safex Team, Hi everyone else on the forum
First post here and I have to say I am really pleased at the progress that’s been made this year on this project. It’s quite impressive.
I have a question, and perhaps the team would be able to provide a quick answer.
So here is the deal:
Aside from being involved in Crypto (as a business owner), I work in Canada’s Oil industry
The company I work for is a HUGE actor in the Oilsands in Alberta, Canada and I’m really well positioned internally to get my idea going.
In a nutshell, what we do is heat-treat huge pieces of metal sent to us by big oil companies like Chevron, etc.
In the past few weeks the nerd in me has been wondering how a game-changing technology like blockchain could be applied to the oil Industry.
From experience I know that when Oil companies need to get something done quickly, they will pay premium for their items to get tagged “priority”.
So my idea is… what if our business could sell “priority spots” on the Chille Marketplace? Where I currently work we anticipate that the price of premiums for priority spots will increase significantly in the next few years. The price of these spots on the Chille Marketplace could reach silly prices!
If, after careful consideration, you tell me that doesn’t sound like a silly idea… I would love to start a pilot soon-ish where I work and try to work out a client-side solution as well. If that works, I’d like to share that solution to other actors in the Oil Industry.
There would be no need to make it a priority transaction. Simply put, they can have a secure private transaction not visible to other people – and it would be quick. Dan confirmed that a private company could:
Encrypt the listing for only someone else; or receive a share link that only those with the share link can access.
The one drawback: if the “chille” coin is volatile, you are subject to large losses while you wait for it to process and then ultimately cash out. Further, I don’t know if banks are going to be fully on board with seeing very large payments come through from an anonymous cryptocurrency rather than a traditional wire transfer.
Hopefully, the confirmation of proceeds received along with proper documentation from both parties confirming the payment was processed will be enough to have this be “acceptable” from the transparency / documentation side of things for a corporation. Over time, this is a must if we want this to have mass adoption.
Bump this thread. It would be fantastic if Dan and the original poster of this thread could have a private conversation and try to get this implemented, or at least talk about a pilot study. Safex used by oil industry would give instant credibility and the market transactions would be exponential compared to people slowly putting misc goods for sale on the marketplace. Having a Safex community member who is well positioned in a huge industry (as FPEGroupLTD) stated, could be THE CATALYST for this marketplace.
We are definitely moving ahead with a pilot. Spoke to colleagues and partners and only positive feedback so far. Our CEO is on site as well, so will have a conversation this afternoon regarding the pilot.
If the pilot is successful, other actors will join the party… It’s a tight knit community.
I will get in touch with Dan for guidance… Expect an email from me today Dan!
I sent a message to Dan regarding this project and I am looking forward to reading his feedback and possibly working with him on this.
So basically what my company will do is sell “priority contracts” on Chille, aimed at clients in the oil industry.
Here is a breakdown of what will have to be done for this to happen:
We will have to write an application that will allow us to “broadcast” to our clients the availability of furnaces (we have 6 of those), in which we heat treat metals for the Oil Industry. Clients will be able to see in real time which furnaces are available and to book a spot.
Integration with the Chille Blockchain. Once a furnace becomes available, a priority contract in the form of a listing will be deployed to the Chille Blockchain with a price attached to it. A client who wants to place a priority order only has to purchase the priority contract on the Chille Blockchain (that is how they would book the spot) and send their material over to us.
Our preliminary timeline looks a little bit like this:
17th of November - We start coding the application that will allow us to broadcast priority spots. On the client side, using the same application, they will be able to monitor the availability of furnaces and purchase priority spots on the Chille Blockchain.
8th of December - Integration with Chille Blockchain. We would like to be able to test drive the Chille Blockchain ie post listings. I know an early version of the Blockchain will be deployed in December.
1st of January - That could be pushed a bit later, depending on the state of the Chille Blockchain. Start of the company wide pilot. 20 transportation companies involved + 10 huge oil players in the industry: Chevron, Shell, etc.
I’m quite happy I got the green light from up above and that I can move forward with this. Absolutely no one in the Industry will see this coming. An application like this doesn’t look like something too complicated to code and implement company wide and I’m sure the community will be happy to see a use case like this for the Chille Blockchain!
Just a thought:
**This is only one use case of the Chille Blockchain.**That is, just for the Canadian market, millions of dollars a year, moving around via Chille. In light of this I really do believe that much talked-about target of 500M$ for the Chille Blockchain is a target that can be reached. We just need more people in the right place, working to onboard high revenue companies and Industries.
Great post! I was going to ask what you estimated the annual monetary amounts to be with a project like this? Once deployed, would you see other companies in the oil industry adopting Safex?Chille rather quickly?
Yes, if the pilot is successful I can see all of them getting on board… Transportation companies, refineries, Big Oil.
Something I did not mention in my first post: our company and our partners will allocate resources to acquire Chille coins. Once a partner decides to purchase a priority spot, they will need to have Chille coins at hand in order to close the transaction as fast as possible. So this pilot will require Oil companies to become Chille holders.
In the end the success of our pilot rests on the progress being made on the Chille Blockchain
Thanks for this Thread @FPEGroupLTD - very much enjoy seeing this type of thinking as it accumulates.
Some things to consider…
First, @FPEGroupLTD, be certain that your employer knows that you are an investor in SAFEX. There is likely no conflict of interest clause that you are violating, but be sure that this is the case.
Second, this is a viable Use Case and important to keep track of as it unfolds. Having a template for other investors to follow, in fields in which they have a background, can be invaluable to the entire SAFEX Community. @dandabek - whatever you are doing on your end to facilitate, this also would be helpful to include in a Template. Consider that each SAFEX Investor is a potential marketplace genre that can be delivered to the overall marketplace. This means we need to know of any regulatory hurdles that Investors might encounter, as many of the SAFEX Community Members seem to be far more than just Investors and more like Partners in an LLC. Legal advice may be beneficial for all of us.
Finally, in the overall Crypto-Universe, the unfolding Use Case of SAFEX seems like something that we would want to share across multiple Communications outlets - not necessarily in real-time, but certainly in the future. Academics, students, and newbies to the Crypto-space, as well as long-standing participants, Coders, etc., could benefit from better understanding what is happening with SAFEX. I would suggest connecting with the PR Firm and garnering insights from them as to how to keep track of the unfoldment of this project and how to share this through a coordinated and well-orchestrated marketing & communications plan for SAFEX. To this end, perhaps @dandabek you will introduce us to the PR Firm much as you did @Ivana.
I am speaking at a conference here in Toronto tomorrow and Friday on Blockchain & Blending Capitals for Corporate Volunteering. The more we can know about how to integrate our work and investment in SAFEX the more likely we can improve the collective understanding of projects such as this.
I had a quick conversation with Dan 5 days ago (shortly after the initial post) and he told me my project is feasible. I was happy to read that. He did point out the fact that it will be a while before the Chille Blockchain (not just the Alpha, which is due out soon) rolls out.
The real pilot will be held when the Chille Blockchain rolls out obviously, so the only things me and my company can focus on for now is the application itself (coding), design, client side UI, compliance, internal promotion… integration to the Chille Blockchain will come later when it is in a functional state. When the Chille Blockchain rolls out, we will be 100% ready to go!