With Minerac, the collaborators hope to increase the efficiency of mineral supply chain operations while boosting profits.
According to a July 9 announcement, blockchain software company ConsenSysand the cloud-based metal concentrates exchange Open Mineral have collaborated to develop a blockchain conglomerate intended to improve mineral commodities trading and supply chain management. The blockchain platform they are developing is called Minerac.
Boris Eykher, the CEO of Open Mineral, said of the project:
“Commodity trading transactions involve multiple parties, located in different jurisdictions. Logistics are complex, financing is difficult to acquire and the entire process is very paper heavy. Thus, the industry is primed for blockchain disruption to simplify the trading process, increase efficiency and profitability.”
Perhaps it is the longevity of the mining and minerals business that has led to outdated and inefficient operational and commercial practices. Such practices can perpetuate critical data omissions, security vulnerabilities, and data corruption.
To address sustainability and security problems it sees in the current system, the Minerac team is considering the development of a process by which minerals and ore are stored in sealed containers or bags when they are being transported. These bags and containers will be stamped with a tamper-proof identification containing specific information about their contents. The information will be logged into the Minerac system and continually updated as it moves through the supply chain.
The Minerac team hopes this process will provide clients who are transporting valuable materials with increased security for their products as well as ensure they were purchased from conflict-free regions. The Minerac system itself rests on the development of a unique enterprise platform, which is said to conform to industry standards set by the Enterprise Ethereum Alliance. ConsenSys is on hand to supply integration with its cloud-based TMS logistics platform.
Ethereum co-founder Joseph Lubin voiced his support for the project:
“At ConsenSys, we are dedicated to building the Ethereum ecosystem and committed to supporting new use cases across all industries. We look forward to collaborating with Open Mineral to build blockchain solutions for mining and mineral supply chains. Minerac will offer a solution where all parties involved in the supply chain will benefit from digitization, secure data collection, the seamless exchange of data and immutability of their records, made possible by the Ethereum platform.”