By

MarEx

2018-07-10 19:19:08 Blockchain venture studio ConsenSys and cloud-based metal concentrates exchange Open Mineral have announced a joint venture establishing Minerac, a blockchain consortium for mineral commodities trading and connected supply chains operations. A number of mining companies and financial institutions will join as stakeholders and collaborators.

The companies state that the mining and metals industry is a critical component of the global economy, however, many operational and commercial practices remain inefficient and antiquated, leading to critical data omissions, security vulnerabilities and even corruption. These inefficiencies can be eliminated with blockchain, an immutable and cryptographically secure archive of records stored on a distributed ledger, by using smart contracts built on the Ethereum platform.

Minerac will allow stakeholders to securely exchange critical trade documents, such as bills of lading and letters of credit, via the use of smart contracts. “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,” says Boris Eykher, CEO Open Mineral.  Minerac stakeholders will benefit from increased compliance, transparency and ease of auditability, he says.

Because the Minerac ledger will be shared, all parties involved in a transaction can be confident that all data is up-to-date, which will reduce errors and create greater overall transparency, eliminating the potential for bad actors to take advantage of loose record keeping. Minerac is also set on addressing key sustainability and security issues by creating processes that would require sealed bags or containers to be stamped with a unique, tamper-proof, identifying ID that will be logged on the Minerac ecosystem. Read more from maritime-executive.com…

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