Why is Blockchain Important in the Mining Industry?

Why is Blockchain Important in the Mining Industry?

Implementing blockchain technology will have a significant impact on mining, from exploration and resources to the supply of metals to industrial and retail customers.

FREMONT, CA:  The mining and metals sector has seen a lot of technologies so far. A lot of technology firms talk about the disruptive potential of what the industry provides. But, the truth is that most of the companies don't want to be disrupted. Let's look at one such technology that helps to unlock the door to efficient data sharing, Blockchain.

Blockchain technology solves several problems with traditional information-sharing techniques. Blockchain platform helps to manage high-value assets across the supply chain platform from the mine to end buyer. Firms participate in a common network to share the data by reducing the need for trusted third-party to manage the data and transactions.

Blockchain participants retain full control, security, and ownership of their data. It still resides on their servers under their security policies, and the firms decide the permissions for who sees the data. But now, they can seamlessly share that data with their relevant counterparts, which allows all parties to make much more informed and often faster business decisions a critical component to driving operational efficiency.

Each type of supply chain participant will see its essential benefits. For instance, mining companies gain real-time visibility on whether their assets are moving through the platform to the intended recipient.

The more significant challenges the industry face are integrating the technology into multiple companies while managing the platform's governance by the consortium. The firms must keep in mind that the purpose of building smarter business through technology for the mining industry is innovation and efficiency, with minimal disruption.

Blockchain could lead to the automation of invoice reconciliation. Ore is assigned a quality certificate, and the customer sends it for lab testing for reassurance. There may not be a dispute over the ore quality and price. This whole process can leverage Blockchain technology with the three parties involved in BHP to started a project using Blockchain to record movements of wellbore rock and fluid samples to secure better the real-time data that is generated during delivery.

See also: Top Blockchain Technology Solution Companies