Fast, efficient exchange of information between energy suppliers has never been more important. But, with the current communications infrastructure, it has never been more difficult to achieve. The many stakeholders, together with a massive, and ever growing, volume of data, means that today’s legacy (centralised) network is no longer fit for purpose. While a migration to DLT-based Smart Contracts is an ideal solution, the fragmented nature of the industry is a major barrier to such a development, as the migration path would inevitably involve the implementation of Smart Contracts based on different DLTs. This would lead to a real and significant threat of communications and supply interruptions, as – until recently – no single Smart Contract could be recognised by, and executed on, different DLTs.
Now, however, Quant has introduced technology designed to address precisely this kind of barrier to Smart Contract adoption: Treaty Contracts. A fast, simple mechanism for facilitating the cooperation between Smart Contracts and transactions on different DLTs using Quant’s Overledger Network, Treaty Contracts act as a ”glue” between Smart Contracts, distributed ledger transactions and other data sources. Using Quant Treaty Contracts, each stakeholder could modernise at their own pace, resulting in a modern, decentralised system for cross-industry data exchange, without risk of interruption due to platform incompatibility.
The advantages of such a solution are considerable. By adopting Treaty Contracts, the utilities industry can digitalise at a staggered pace that suits the diverse strategies of its key players. Each stakeholder would have the freedom to adopt the Smart Contract that best suits their individual business requirements, while maintaining the ability to communicate across systems, and retaining critical functionality. In short, the creation of Treaty Contracts offers real benefits both to customers and suppliers in the sector, and will support wider initiatives such as the industry’s drive to meet its 2050 target of net Carbon Zero. This can be achieved through utilitising Overledger OS as well as Quant’s unique Treaty Contract mechanism.