An American financial technology company is hoping to use blockchain technology to track the gold supply chain, with the goal of ensuring that it is responsibly sourced and genuine.
Emergent Technology hopes to begin digitally encoding the supply chain during the first half of this year, according to its Chief Commercial Officer, Mitchell Davis. The company has partnered with Yamana Gold with the intention of creating a blockchain-based liquid asset called the g-coin, representing 1g of responsibly sourced, 99.99% pure gold.
The value of the g-coin will be pegged to the spot price of gold and will act as a digital certificate of ownership that can be traded, invested and used as a method of payment. The gold itself will be fully traceable and authenticated by the process of digitally recording each stage of its journey along the supply chain, from mining onwards.
The use of g-coins as a digital token to represent gold should also allow the precious metal to be traded with greater liquidity, Davis has said.
Other organisations have also made attempts to track gold using blockchain, but Emergent Technology claims to be the only one focussing on ensuring responsibly sourced gold. The company believes that it will be able to guarantee provenance and check purity by attaching a cryptographic seal to each gram of gold, and recording and connecting every stage of the supply chain. The tamper-proof seal will contain a smart chip that can be scanned using a mobile app, and each stage will be publically visible and transparent.
Blockchain represents a digital ledger consisting of unchangeable, fixed units of information. When a transaction is recorded it cannot be altered or deleted and forms a block of information, connected to previous and subsequent blocks in a chain that is not maintained by any one party.
Steve has over 28 years of success as CPO, MD and Procurement BPO leader in a range of industries. Steve is COO at Odesma, responsible for Odesma’s delivery capability & infrastructure.