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Blockchain Technology

11.6.4  Intelligent/Smart Contract

A smart contract is a hard-coded program that implements a predetermined con­

tract’s provisions. It was an idea generated through blockchain. The innovation of

blockchain often included smart contracts that miners would run dynamically. This

motive is the rationale behind the development of more intelligent contract sites.

The IoT and finance are the targets of blockchain technology. Many sectors, such as

banking, operate using blockchain technology (Peters et al., 2015, 2016). We expect

intelligent contract analysis to fall into development and evaluation categories. The

project could be an intelligent contract creation, implementing an intelligent con­

tract framework, or both. In the Ethereum network, some intelligent contracts were

introduced (Wood, 2014). Ethereum and Hawk have become popular platforms while

developing an intelligent contract system. Evaluation applies to code interpretation

and output evaluation. Bugs from intelligent contracts can cause catastrophic dam­

age. As a result of recursive call errors, hackers stole over $60 million from the DAO

(Jentzsch, 2016). DAO is ‘Decentralized autonomous organization’ formed on the

Ethereum blockchain concepts. Thoughtful analysis of contract breaches is critical

to performance. Intelligent contract efficiency is also essential for smart contracts.

Blockchain technologies are now developing exponentially and are widely imple­

mented in smart contracts. Companies must take the output of the application into

account.

11.6.5  Artificial Intelligence

Current advancements in blockchain technologies provide exciting prospects for

artificial intelligence (AI) ventures (Omohundro, 2014). AI technology could assist

in solving several blockchain challenges. There is always an oracle tasked with

deciding whether the contractual obligation complies. This seer is a reputable

third source. Research on AI has the potential to help create a smarter predictor.

Data is not regulated by any one institution, but rather is researched and educated

externally.Thus, there are no disputes in the intelligent contract. AI is crucial now.

Blockchain and smart contracts could discourage misuse and provide insight into

AI benefits. Autonomous vehicle misbehaviour can be regulated using intelligent

contracts.

11.7  CONCLUSION

This chapter extensively reviewed the potential uses of blockchain technology for

the oil and gas industry. On the one hand, blockchain technology offers tremendous

promise to the oil and gas sector, and on the other hand, it presents possibilities,

obstacles and threats, as it has only begun in recent years. An energy blockchain may

be a game-changer for industry and operations. The chapter emphasizes that block­

chain use in the petroleum and gas sector is currently in the testing stage, and those

in the petroleum and gas industry do not recognize it enough. Asia and Europe are

the most prominent nations using blockchain in the petroleum and gas sector. BP and