Producers and royalty owners spend too much time just calculating and checking payments. But when you add the major cost and effort spent resolving disputes, frustration and profit bleeding
Fortunately, new technology holds great promise to simplify, automate and reduce administration and disputes in royalty contract transactions.
Distributed ledger and blockchain, the technologies behind Bitcoin
Guided by two decades of helping energy stakeholders tame the royalty beast, GuildOne has developed a solution based on distributed ledger and blockchain.
A validated and mutually
agreed-upon contract is at the core of ongoing payment calculations.
An expected 80% efficiency
gain through trusted efficient and secure royalty settlements.
Blockchain and distributed ledger technology enable restricted access to only the parties involved.
Ability to scale tens of
millions of royalty contractnsettlement and payment transactions per month.
Distributed ledgers enable secure digital transactions and reduce the costs of administration, mistakes
Instead of entering contract terms into separate systems, distributed ledgers let the relevant parties encode their negotiated “smart” contract into the same system. The ledger then carries out all subsequent digital transactions based on the agreed-upon terms.
Once made, each royalty transaction becomes a block in a permanent ledger (or chain), making it and its metadata traceable, indisputable, and tamperproof.
Third-party approval is less important: trust is inherent in the mutual agreement between the relevant parties.
Distributed ledger concepts and technology are evolving well beyond finance and into other sectors like government, energy and entertainment industries. The concepts carry forward: encoding a smart contract between parties and allowing all transactions to flow from those terms, each transaction an unchangeable record that can be traced to its origins.
Applications beyond oil and gas