During the past week, there was great news in the precious metals market. The largest diamond company in the world, Alrosa, became a believer in blockchain. The company announced that it would be adopting blockchain technology in a bid to increase transparency in the production and supply chain process. This news came shortly after JPMorgan made a move to tokenize gold on the blockchain.
Blockchain And Precious Metals
For a while now, blockchain has been penetrating the precious metals industry. This industry relies heavily on supply chains as thousands of cargo pass through various geographical locations before they reach their final destination. The technology has been used to reduce corruption and increase efficiency during tracking of these valuable assets during each milestone of the transportation process.
Blockchain has been used to improve the gold industry. This fact has been established. On the 19th of October, a wholesale giant that takes care of over the counter trading of gold and silver, London Bullion Market Association, announced that it was making plans to improve transparency and modernise the industry using blockchain technology. Blockchain technology can be used to identify and remove metals that are either mined illegally or traded illegally. If can also identify metals that are used to finance conflict.
In March 2018, Reuters reported that the LBMA asked all its members to offer their opinions on the best way to track gold. 26 proposals were submitted from the 144 members of the association. 20 out of the 26 proposals were about using blockchain technology to enhance the industry. The LBMA said it is making plans to create a project outline that would allow them to tap into the power of blockchain technology. In the first half of 2019. They are already implementing standards that will be used for tracking on the blockchain.
When mass adoption takes place, blockchain technology will potentially eliminate corruption in the precious metal industry. This may happen sooner than expected as there has been a rise in interest in blockchain technology for a while now.