Blockchain, a transparent way for mining and metal industry
Mining and metal industries play a pivotal role in the global economy. Traditional ways to handle operational activities are very inefficient and leading to data loss and security vulnerabilities.
Blockchain technology has numerous benefits in the different industries, and mining industries is one of them. It has the capabilities to subvert the ways the mining industry and supply chain operates. The blockchain is immutable and securing the data with the help of cryptographic hash. Supplier and buyers can exchange letter of credit, letter of guarantee using smart contracts, and each and every transaction is logged on the distributed ledger.
Building Trust
Various firms are trying to exploit the opportunities to track and record the lifespan of the commodity, in particular, to prove its origin. Cuprum announced a Blockchain initiative to support the copper mining industry to ensure transparency in copper trade and to increase the growth of copper mining industries. According to Cuprum white paper, production facility has been set up in Russia to support this initiative.
Digitization
To get the maximum benefit of Blockchain technology in the supply chain, it should reflect the real-time status of each stage. Auditing and analyzing each stage and process is a daunting task. Having decentralized ledger and unique id for each customer and transaction will suffice this requirement. Moreover, detection of falsified data and error is very easy in Blockchain.
Compliance
In mining and metal industry, utmost care is taken to make sure all processes are compliant and using the sustainability. But, still, there are various issues in relation to the mining of copper, such as child labor. Cuprum is aiming to follow all regulations and compliance features in its upcoming Blockchain project
Fast Transactions
Synchronized nodes of Blockchain will help to swiftly complete the transaction in a short time. Moreover, it will allow each participant to get a notification about each trade development during the course of the transaction. When exact information is logged in the Blockchain, the number of disputes and their resolution time will decrease.
Sustainability
When each transaction will be assigned with a unique id, tracking of sealed bags and other ore will be easy. Unique ID on Blockchain will help to identify the quality and quantity of each sealed bag. Furthermore, it will also help to identify if minerals are purchased from the compliant region or not.