Shanghai Gas has signed a partnership agreement with VeChain to develop a blockchain-based energy project.

The move aims to lower operating costs and boost supply chain efficiency, as well as establishing a trust-free “Energy-as-a-Service” ecosystem.

As one of the countries that seek to meet the growing demand for natural gas, China is facing the challenge of effective management of its domestic market.

In 2017, the National Development and Reform Commission (NDRC) has announced a plan on energy development to facilitate building an energy network. However, lack of information sharing between stakeholders led to major difficulties. Accordingly, there was an urgent need for a blockchain-based solution.

Shanghai Gas, as a leading domestic energy player, has joined ENN and VeChain to deploy the blockchain-enabled liquefied natural gas (LNG). Upon the success of the project, Shanghai Gas plans to improve the partnership so that it can benefit more through launching a new blockchain-based energy project.

The project’s first phase includes processing and uploading the information of LNG delivery and storage tank on the VeChainThor through using the VeChain ToolChainTM; a one-stop BaaS Database Framework.

VeChain aims to integrate DeFi

Earlier, VeChain CEO Sunny Lu has unveiled that his company seeks to integrate the decentralized finance (DeFi) into its VeChainThor (VET) blockchain.

He indicated that it is the time for his company to use “financial applications that you can use in collateral, assets, for cross-chain protocols.”

“The VET token will be used in a different way, more representing the valuation of assets for open finance applications. In the upcoming whitepaper 2.0, we have a dedicated section to elaborate on open finance applications,” he added.

At the time of writing, VeChain moved down 1.15 percent to $0.00296. It ranks 35 among cryptocurrencies with a market cap of $191.00 million.

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