Mining is the hidden gem amidst blockchain opportunities. We don’t talk about it enough – and yet the potential of blockchain technology in mining stretches as far as bullion, supply chain and even fuel tracking.
There are a myriad of ways that blockchain can enhance the way we do mining by mitigating money loss and enhancing productivity.
1. Blockchain-backed supply chain tracking
Supply chain tracking is perhaps the most commonly discussed implementation of blockchain in mining. This is because blockchain provides massive opportunitiy for data management and tracking across a multitude of vendors.
The opportunity for blockchain in supply chain tracking lies in its decentralised and secure nature. Blockchain (or, at least, blockchain-backed platforms) can be used to track supply chains from the beginning-to-end. For mining, this means from the mine itself to the end consumer as a product such as a bullion bar.
The value of this is that it allows the final customer to track their product throughout the entire supply chain. With previous supply chain technologies – many of them manual and paper-based – it was nearly impossible to track an asset from production into the market and know that that information is correct and hasn’t been tampered with. With blockchain, it’s very difficult – if not nearly impossible – to lose information.
Blockchain can also provide easier insight for JV partners and increase auditability across supply chains. This provides provenance for not only the consumer but also organising and regulating bodies.
2. Data management in mining
Mining companies deal with large amounts of data. Part of this is the result of a company’s supply chain, which often takes the focus. However, there are other forms of data, such as internal (for example fuel consumption and financials), ESG, forecasting and exploration data. These are all produced within companies at a large scale, and yet are often difficult to centralise and analyse.
Blockchain can transform the way companies see their own data, by securing, centralising and tracing it. It prevents the unnecessary loss and siloing of data by ensuring its traceability and permanence.
3. Contractual agreements and intermediaries
Often, in mining, there are contracts between a myriad of parties. In many cases, these contracts and agreements require intermediaries, which can be costly. The processes that companies have to go through can also be massively time consuming.
Contracts and agreements can be put on the blockchain, ensuring that the contract is permanent, trustworthy and traceable. This means that there is no need for intermediaries as both bodies have easy access to the contract and can identify any deletions or changes.
Blockhead Technologies is bringing blockchain into the mining sector with STAMP Fuel and STAMP Supply. You can find out more about Fuel here or Supply here, or contact us at [email protected] for more information or a demo.