Blockchain’s Many Benefits Will Improve Global Mining SupplyChain Efficiencies
How Blockchain Can Revolutionize the Global Mining Supply Chain
Recently, the White & Case international law firm published a report indicating how blockchain technology can be used to enhance transparency and mitigate the challenges facing the global mining supply chain.
The report, written by Rebecca Campbell and Andrzej Omietański, stated that the industry is ready, and it is only a matter of time before the technology is implemented. Also, the report covered how this nascent technology can disrupt the supply chains of various minerals in the mining sector.
The report defines both blockchain technology and smart contracts and then proceeds to explain how both of these are applicable to the mining industry. As per the writers, the mining sector is currently marred by inflated cots, non-transparency and frequent cases of fraud, especially in the supply chain.
For this reason, blockchain technology should be deployed since it is the solution to the aforementioned challenges. Specifically, the technology will improve efficiency and enhance transparency by enabling miners to track every step of the supply chain.
Regarding smart contracts, the report mentions that the blockchain-based contracts can be used to fund mining operations. In this case, the smart contacts would work similar to the way they work in ICO crowdsale events. Alternatively, these contracts can be used to solve disputes between involved parties. The report acknowledges although initiating contacts on the blockchain will not prevent disputes, it is easier to solve such disagreements due to the immutability of the distributed ledger.
Additionally, the report also covers the issues that are likely to inhibit the seamless integration of smart contracts and blockchain tech in the global mining industry. Among the concerns raised in this section is who should develop smart contacts.
Normally, computer scientists are charged with this takes, although the recent cyber-attack on the EOSBet smart contacts has led to some investors calling for the inclusion of lawyers in the drafting of these contracts.
Overall, the White & Case report is optimistic about the introduction of blockchain technology to the mining supply chain. However, Christian Lanng, the CEO of Tradeshift, believes that blockchain technology is not developed enough to handle such a task effortlessly. Precisely, Christian said that he believes that the technology could significantly improve the operability of supply chains.
Nonetheless, he indicated that the integration cannot materialize presently since the tech is still in developmental stages. According to him, it may take five to years for the integration to become possible.