R Fintech & Bilur – Using Blockchain to Commoditize Energy

By using a decentralized exchange and other financial tools to create a cohesive ecosystem that brings together investors, traders, and oil operators, R Fintech aims to lower the costs of energy trade and to create new business opportunities for the general public. By using a digital token backed by an actual commodity – real units of stored energy – Bilur token helps to lower the risks of investment. R Fintech decided to explore Chinese market with Bilur Energy and its new branch Bilur Panax.

In addition to opening new markets, lowering business costs, and giving digital assets real value, R Fintech and Bilur are developing cutting-edge financial tools and services that promise to revamp energy markets worldwide. To understand just how disruptive R Fintech and the Bilur ecosystem promise to be, it helps to have a better understanding of how blockchain technology, the demand for energy, and barriers to energy trade are all interconnected aspects of an important problem facing the world today.

Blockchain, Business, and the March of Technology

Technology can be a double-edged sword. It makes things simpler, easier, faster, and cheaper, but at the same time, rapid progress can be harmful to the world. Consider this: the Earth is about 4.5 billion years old. If we scale that down to 45 years, we have been on this planet for less than 4 hours, the Industrial Revolution began about 60 seconds ago, and since then we have, according to Greenpeace, destroyed more than half of the world’s rainforests. This is by no means sustainable, but can you imagine a day without, for example, electricity? It is a cornerstone of any modern society and is needed to run homes, hospitals, transportation systems, road and communication infrastructures, and financial services. Electricity may have transformed the world, but are we going about things the right way?

The same line of thinking can be applied to how we create value, how we trade, and other commonly accepted business practices. Globalization and technological advancements are great for opening new markets and improving the efficiency of doing business, but as blockchain technology is fast proving, we can do things in a much better way. This is one reason why blockchain solutions are disrupting every industry from healthcare and energy to transportation and even entertainment.

Large Monopolies – Raising the Cost of Trade

The CME Group operates some of the world’s largest and most diverse commodity trading marketplaces. It provides memberships on the Chicago Mercantile Exchange, Inc. (CME), the Chicago Board of Trade, Inc. (CBOT), the New York Mercantile Exchange, Inc. (NYMEX), and the Commodity Exchange, Inc. (COMEX) Exchange. If you want to be a player in the oil industry, you need an account with them. However, they, as is true with every other major commodity exchange in the world, are run by a board of managers, meaning they can unilaterally make decisions that suit themselves. Trading on their platform is expensive as well: membership fees can range from $800 to over $450,000 annually. This high cost of membership, a lack of transparency, the risk associated with engaging in trade with large players, and the highly illiquid nature of commodity trading make this a market ill-suited to most people. What are needed are lower barriers to energy trade, not higher barriers, but the status quo does not provide that.

Blockchain technology, however, with its built-in transparency, privacy, security, low cost of operation, and fairness to all players large and small, can drastically improve this market. Unfortunately, it faces many challenges to adoption. The first is direct intervention from the likes of government, but the next biggest challenge is from large companies, such as the CME Group, that do not want to lose the power and control over their market. One thing should be clear, though: when it comes to energy markets, the biggest issues are caused by centralized conventional energy players, illiquid markets, a lack of transparency in business practices, and the high cost of market participation.


Introducing Bilur – The Next Major Revamp in Energy Exchange

As is clear, blockchain can bring about a much-needed revamp to many markets to make them more efficient, transparent, and open to all, including the energy market. However, a major shortcoming of many blockchain projects today is that they are based on tokens with no intrinsic value. Just like paper money replacing valuable metals as units of exchange, tokens are actually worth zero themselves and only carry the value assigned to them by the market. Bilur was envisioned to bring the benefits of blockchain to energy exchange as well as to solve both this problem of intrinsic token value.

How does it do this? Simply put, Bilur is a digital token backed by real units of stored energy. Launched by R Fintech, a company involved in the design, development, implementation, maintenance, and promotion of financial tools and services that are based on new technologies, it is creating a new and completely decentralized money system that allows you to protect your investment with physical energy and gold because each Bilur token traded on the exchange is backed by stored physical energy and gold reserves.

System Benefits

There are numerous benefits to trading on the R Fintech platform using Bilur, including the following:

• Bilur actually has intrinsic value because it is backed by real commodities

• Independently run on a decentralized exchange free from the involvement of financial institutions, Bilur can be traded transparently, easily, fluidly, and by anyone

• There are no trusted 3rd parties needed to oversee transactions or for other services

• Rules cannot be unilaterally decided or implemented since the use of smart contracts and voting remove uncertainty and improves the efficiency of the system in the interest of the entire user base

• Participation costs for the system are low: transaction fees are zero, and there are only daily maintenance costs of roughly 0.01%

• The platform and ecosystem as a whole combine numerous financial services and tools, including but not limited to arbitrage, forex strategies, and risk minimization strategies

Marching to China

After its successful launching Bilur in Europe and US, R Fintech recently decided to bring Bilur to China along with the latest branch, Bilur Panax. Bilur Panax using the same securitization structures and blockchain technology as Bilur Energy, while backed up by wild ginseng crops. Ginseng is a high value cash crop strongly demand in China, Japan, Korea and other East Asia countries, Bilur Panax arms to make ginseng a commodity to be traded on financial market like soybean and wheat that utilizing the extra spread and liquidity brought by blockchain upsurge.

The Bottom Line

It has been too long that the traditional energy market has faced issues that stem from centralized conventional players, illiquid markets, and a lack of transparency in business practices. The problem will only worsen: an increase in the demand for energy, the high cost of traditional sources of energy, and greater awareness of climate change are together pushing people towards the renewable energy market. Although trying times may be ahead, they present a unique opportunity as well.

R Fintech and Bilur will disrupt the energy-trading sector by using blockchain and a decentralized exchange to replace the middleman and to execute peer-to-peer trades that are transparent and secure. They provide a high level of transparency for all market participants while lowering barriers to trade and the cost of doing business. Backed by one million barrels of oil already purchased to give real value to all the tokens that run the ecosystem, the energy market is on the brink of a revolution. R Fintech, with Bilur and its suite of financial services, is helping to make it happen now.

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Company Name: Rfintech PLC
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Website: http://www.rfintech.eu/