The purpose of traceability with Blockchain is that consumers have access to information on the origin and distribution of a product or production, from its origin to its final stage.
Within mining production there are a large number of stages from the moment the mining material is extracted until it reaches the consumer.
For this reason, at InnovaMinex we provide a solution that allows digitising these supply chains, optimising processes and controlling all aspects of the production and distribution chain.
Usefulness of traceability
- It is a tool for investors or buyers as they can reliably know the origin of the precious metal and its characteristics.
- It is a tool for companies as it can record all the processes in a chain, from production to the final sale of the product.
Another objective of traceability with Blockchain is to be able to guarantee the integrity of the supply chain and to protect goods against any kind of counterfeiting or problems related to overproduction.
This is prevented by the availability of real-time information on any operation, which allows for quick action to be taken on any incident.
Advantages of the Blockchain
Decentralisation
As the information is not stored in a central location, it offers greater user privacy, greater security and fewer errors.
Accuracy
A large network of computers approve blockchain transactions, which almost completely eliminates the human factor and the risk of errors.
Efficiency
While finance companies and banks have limited opening hours, the blockchain operates 24/7. Within minutes, transactions are completed and within hours they are considered secure.
Security
After a transaction is made, the blockchain network verifies its authenticity and after validation it is added to the blockchain in the form of a block. Each block contains its own cryptographic hash function, which means that if any information in that block changes, the code also changes, but it does not affect subsequent blocks.
Transparency
The technology is almost always open source, which means that users of the network can modify the code and also that tampering with it is much more difficult. It is almost impossible for someone to change something and go unnoticed.
Traceability applied to mining projects
We are going to show you how traceability through the blockchain can work in practice in a mining company that serves a fast-moving consumer market.
Investors are interested in buying precious metals. They like to know the attributes associated with their provenance, that the processes are as environmentally friendly as possible, the treatment of the material, the times and the amount of material processed.
The company naturally wants to satisfy these interests, but it also has its own information needs. It wants to know about production methods and quality. It wants to know about availability, and not only in the short term. It wants to know about business transactions at different points in the supply chain. And you want to know about business practices at all levels, from mine to distribution.
To ensure that the product and all processes are best-in-class, the mining company must track not only the precious metal, but also the materials and tools needed to produce it.
A well-designed blockchain traceability system is the best option for large-scale mining projects like the ones we are managing together with MinexCorp.
