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Snam becomes world’s first network operator to manage blockchain transactions

4 January 2020 13:28 (UTC+04:00)
Snam becomes world’s first network operator to manage blockchain transactions

By Trend

Italy’s Snam company has become the world’s first network operator to manage blockchain transactions, Trend reports citing the company.

Snam said it has managed, for the first time in the sector globally, bilateral transactions for the purchase and sale of natural gas based on blockchain technology.

The transactions took place starting from Tuesday 17 December on the Virtual Trading Point (PSV), the Italian gas Trading Hub managed by Snam as the national transmission system operator, and involved two users (Axpo Italia and Sorgenia).

“The experimentation, which will continue in 2020, aims to exploit the advantages in terms of immutability, security and transparency of the data guaranteed by the blockchain and more generally by the so-called "Distributed Ledger" technologies, ie systems that are based on a distributed ledger, also contributing to make interactions between users simpler and more immediate thanks to machine-to-machine transactions developed through smart contracts and algorithmic trading,” said the company.

In the future, moreover, these technologies will be able to support the development of renewable gases by facilitating the tracking of energy sources and flows, thus optimizing their production and consumption. The blockchain-based platform is owned by Snam and was developed in collaboration with the Italian startup Mangrovia. Snam has collaborated with Axpo Italia and Sorgenia in defining the requirements and testing the technology.

As part of the €6.5 billion investment plan by 2023, Snam plans €1.4 billion dedicated to SnamTec, from innovation to new energy transition businesses.

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