Blockchain Technology in Gold Mining Industry
Several major gold mining organizations have initiated the launch of a “gold bar integrity program” based on blockchain technology.
The London Bullion Market Association (LBMA) and the World Gold Council (WGC) announced a collaboration on gold mining. The initiative’s main goal is to develop an international system of control over the gold bar integrity, chain of custody, and provenance based on blockchain technology.
The technical implementation of the project is being carried out by aXedras and Peer Ledger. The distributed ledger will record all stages of gold bars’ production and distribution cycle: from mining to acquisition by jewelry manufacturers.
The program is expected to allow market participants to avoid fraud and help manage the supply chain. The initiative has already been supported by companies such as:
- CME Group;
- Barrick Gold;
- Aura Minerals;
- Newcrest Mining;
- Royal Canadian Mint;
- Argos Heraeus SA;
- Hummingbird Resources;
- Perth Mint and others.
The project is a pilot for now, but it is planned to be massively implemented in the gold mining industry in the future. It will solve the industry’s most significant problems — illegal gold mining and counterfeit bullion circulation.