Blockchain will enable authentication and tracking of gold in the supply chain.
Blockchain is a revolutionary database technology. Organizations are using it in different ways.
London Bullion Market Association (LBMA) and the World Gold Council (WGC) announced on Monday that they are collaborating to develop an “international system of gold bar integrity, chain of custody and provenance” based on blockchain technology developed by companies aXedras and Peer Ledger.
The initiative is called Gold Bar Integrity Program. It will help in the authentication of bullion by enabling a global ecosystem that will create an immutable record of a gold bar’s place of origin and chain of custody.
The so-called Gold Bar Integrity Programme is being supported by organizations such as CME Group, Metalor, Barrick Gold, Brinks, Royal Canadian Mint, Newcrest Mining, Hummingbird Resources, Argos Heraeus SA, Asahi, Aura Minerals, Perth Mint and others.
The plan is to encourage all major participants in the gold industry to adopt this technology and add to the global ecosystem. With this, all gold bars will be registered and tracked across the entire supply journey from mine to vault, and ultimately to end consumers such as jewellery manufacturers, effectively digitizing the global supply chain of gold bars.
This blockchain-backed ledger will register and track gold bars, capturing the provenance and full transaction history. It will create an immutable record of a gold bar’s place of origin and chain of custody.
Ultimately, this will help consumers, investors, and market participants to trust that their gold is genuine, and has been responsibly and sustainably sourced.
Traditionally, blockchain is synonymous with cryptocurrencies because the initial implementation of blockchain was in the digital asset space. Now it is being used in a variety of industries such as supply chain, maintenance of land records, etc.
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