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Today, the metals and mining industry plays a significant role in the global economy. However, many commercial and operational practices remain obsolete and inefficient, leading to security vulnerabilities, critical data omissions, and corruption. But when it comes to security, the technology that is gaining huge acceptance and acknowledgment across the world is Blockchain technology. It has the potential to serve as a powerful tool in the mining industry and could improve its social, environmental and governance standards. It is a cryptographically secure set of records stored on a distributed ledger which utilizes smart contracts based on the Ethereum platform. Security, immutability, and accountability are the three major aspects of Blockchain, which makes it convenient and relevant to the mining industry.
While blockchain in the mining industry won't appear to be an invincible concept, many are considering it the future of mining. Applying Blockchain to the mining industry may seem to be a strange thought, but people associated with this vast technology consider it a milestone for the same. As per a recent survey conducted by PwC, 84 percent of companies are dabbling in Blockchain technology to efficiently minimize fraud, theft and related insurance costs. Let’s discuss the potential uses & future of exciting Blockchain applications in the mining industry and what it can provide for its improvement in the global economy.
Applications of Blockchain in the Mining Industry
1. Security from Cyber-attacks: Mining is considered the no. 1 industry when it comes to spam messages & notifications. Blockchain application uses the idea of the digital ledger that tracks every transaction and securely encrypts that data in the form of data blocks. Also, by eliminating the requirement for a mediator, it decreases the revelation of information to the hackers as the validation is handled automatically and electronically. In this way, Blockchain can add another dimension of security for miners.
2. Cost reduction: As mines operate everywhere throughout the world, the cost of cross-border payments is a major problem for the mining industry. However, remittances are undergoing immense changes because of Blockchain. Not only can Blockchain eliminate security issues, but also speed up the transaction process. As Blockchain provides the option of payment in digital currencies, you can also get rid of costly exchange rates.
3. Compliance: Mining organizations need to manage endorsements of documentation made in the explorations, asset/reserve estimation, mine structure, and planning process. Blockchain improves the traceability of saving estimation for stock trade detailing and the traceability of inventory into the ERP for stock management of the asset/holds. It can be utilized to approve the work process/review of activities and outputs utilized in the asset/reserve calculations.
4. Broad adaptability: Blockchain arrangements are applicable to all the partners associated with the broader value chain, from money related foundations and ship administrators to surveying laboratories, distribution centers, and many others. Also, the synchronized nature of Blockchain allows ecosystem participants to be notified of trade developments at the same time.
5. Smart Contracts: They are basically designed to execute specific commands such as advising the proprietor or even law enforcement when they are presented to the external data output. By using the Blockchain technology, a mining company can recognize its ore body and get this data verified by a trusted third party, which would be recorded in the form of a smart contract.
6. Reconcile amount produced and sent to processing plants: It’s difficult for mining companies to reconcile the amount produced in the mines and transfer it to the processing units. When combined with adequate measurement procedures and technologies, Blockchain can automate and enforce this reconciliation to such an extent that each esteem is enlisted in the record book automatically.
7. Processing the IoT data: Most of the miners use Blockchain to process the data generated by connected devices in a more effective way. For example, a digital ledger could link a vehicle with a warehouse, allowing the two components to “talk” and order new stock, with payment processed on delivery.
8. Automatically execute procurement and other contracts: Mining organizations are huge buyers of fuel, which include diesel, electrical energy, tires, reagents, consumables, etc. Blockchain permits the automation of procurement of those items, utilizing auction motors, utilizing their negotiating abilities with the market, and permitting opportunistic purchase strategies.
What Blockchain Has in Store For Miners in the Future
The above-written applications of Blockchain demonstrate that it is bound to make a massive impact on the mining industry in the coming time. In this 21st century, security has turned out to be one of the real worries for major businesses like mining. According to Softpedia, almost 22 mining companies reported major cyber-attacks between 2010 and 2016. Due to this reason, mining companies are spending lavishly on a dizzying array of security products.
Today, many mining companies are hiring Blockchain consulting firms or creating an in-house department for data migration and handling security issues. In September 2016, the world’s largest mining firm BHP Billiton announced that they are planning to use Blockchain technology to record the movement of wellbore rock and fluid samples.
In a nutshell, Blockchain technology can have a tremendous impact in all areas of mining, from exploration and resources to the supply of metals to retail and industrial customers. If you are looking for a company that can provide customized Blockchain solutions to help propel your business to greater heights, then look no further than Debut Infotech. Our highly-skilled Blockchain developers are continuously researching for the new use cases of Blockchain and are committed to developing customized Blockchain applications for diverse industries. To know how we can help you with your industry, drop us a line at firstname.lastname@example.org or contact +1-703-537-5009