May 9th, 2019, I bumped into Andrew Bruce, founder of Data Gumbo, at OTC 2019. Data Gumbo was founded by Andrew Bruce, a former executive at National Oilwell Varco and MHWirth. Bruce built Data Gumbo after identifying a multi-million dollar cost-saving opportunity to eliminate a sizeable inefficiency between an oil supermajor and one of its suppliers. Bruce devised a blockchain solution, spurring the creation of Data Gumbo to automate contract execution in the O&G supply chain. Here is what he had to say.
Most blockchains perform tasks called mining and consensus when doing transactions between parties. These tasks require computers to solve complex algorithms that are computing intensive. To solve these computations quicker, the solution is often to increase computing power, by adding more computers, CPUs or GPUs. These resources consume energy.
Bruce explains how energy intensive blockchain can be.
Most blockchains come from “fintech” (Financial Technology), where financial transactions are in focus. The reason for wanting to do transactions quicker on a blockchain is very similar to the requirements of banking systems – where you need to do a high volume of transactions very quickly to handle the workflow.
Bruce continues to elaborate on how his service saves energy.
Data Gumbo’s blockchain does not require the blockchain participants to execute heavy computing tasks to do transactions, but can still achieve consensus. Data Gumbo has tailored its blockchain, so that the hardware footprint is minimal, while achieving the same result.
Bruce concludes with the following statement:
Data Gumbo’s blockchain is an industrial blockchain, and has a different architecture than most fintech blockchains. This equates to large amounts of data, and timed transactions, rather than small and fast transactions.
Please read their below given press release:
Equinor Technology Ventures and Saudi Aramco Energy Ventures Invest in the Blockchain-as-a-Service Company
Houston, TX — May 7, 2019 — Data Gumbo Corp., a Houston-based technology company that has developed a Blockchain-as-a-Service (BaaS) platform to streamline smart contracts management for industrial customers, announced today completing a $6M Series A equity funding round co-led by Saudi Aramco Energy Ventures, the venture subsidiary of Saudi Aramco, and Equinor Technology Ventures, the venture subsidiary of Equinor, Norway’s leading energy operator.
Data Gumbo’s new capital will be used to expand the company’s commercial blockchain network, in addition to growing the technical, sales and marketing teams at their Houston headquarters and office in Stavanger, Norway. This Series A round brings Data Gumbo’s total funding to $9.3 million.
“We enabled the first application of blockchain technology in the offshore drilling industry and will continue to break new ground with applications of BaaS to improve the bottom line of companies of all sizes. Blockchain will have a major impact on the oil and gas industry – and all global industries – and we will lead the charge in its broad adoption for sweeping operational improvements,” said Andrew Bruce, Chief Executive Officer of Data Gumbo. “The partnership with Equinor and Saudi Aramco, and their associated supply chains and partnerships, will provide the momentum for the Data Gumbo BaaS network to gain critical mass.”
Data Gumbo was founded by Bruce, a former executive at National Oilwell Varco and MHWirth, and serial entrepreneur with 20 years of experience in the software and energy industries. Bruce built Data Gumbo after identifying a multi-million dollar cost-saving opportunity to eliminate a sizeable inefficiency between an oil supermajor and one of its suppliers. Bruce devised a blockchain solution, spurring the creation of Data Gumbo’s BaaS distributed ledger network to automate contract execution.
The overarching problem that industrial companies, including those in oil and gas, face is that transactions resulting from measurements are interpreted differently by companies, their service providers and suppliers, be it weight, speed, height, connection, delivery time, volume, quality controls, or any other number of related contract terms. Each company in the supply chain has different interpretations of the data, and when it comes to payments, filings and audits, there are significant delays and disputes. The supply chain parties currently lose hundreds-of-millions of dollars in extra expenses and delays each year due to these delays and disputes, and ensuing reconciliation between supply chain parties.
Data Gumbo eliminates these differences in interpretation with the power of its BaaS network and smart contract technology, facilitating automated calculation, reconciliation and payment of invoice line items in near real time with total transparency — driving reconciliation time between supply chain counterparts down to zero, among other benefits. After removing disputes and enabling automated payment, the BaaS network records the result in an immutable record shared among all parties to the transaction. Benefits include significant cost savings, better reporting, bills paid on time, and clarity and certainty over financial positions for all parties in the supply chain. Customers realize savings of 5-10 percent off the top on Data Gumbo-managed contracts from a combination of fewer disputed invoices, fast-pay discounts, and performance contracts. Additionally, Data Gumbo offers a subscription model, freeing industry from building and sustaining standalone, in-house blockchain solutions with their inherent lack of interoperability and neutrality.
“While we started in energy, we already have value for bulk commodity haulage, trucking and shipping, with plans to parlay our momentum into other global industries. Wherever two or more organizations share a contractual relationship that can be verified with a digital source of data, opportunities abound to realize efficiencies and cost savings utilizing our blockchain network,” said Bruce.
“Distributed ledger technologies have the potential to bring win-win efficiencies between industrial companies and their suppliers, and Data Gumbo is at the forefront of introducing this innovation,” said Daniel Carter, senior investment director, SAEV. “While they have started in the energy sector, Data Gumbo’s platform has broad industrial applicability.”
“Over the past two years, through our internal and external efforts, we have learned a great deal about how blockchain can create efficiencies and save cost in our operations. We believe now is the time to put that knowledge to work by supporting a promising company in this space and to realize value by implementing their technology,” said Rannfrid Skjervold, managing director, Equinor Technology Ventures.