Canadian blockchain startup, MineHub Technologies partners with the world’s largest mining companies (BHP) to execute an iron ore trade with China Baowu on the blockchain.
Two months ago, Chinese firm Baosteel was involved in a blockchain transaction transaction for letters of credit. Reports reveal that the latest transaction was valued at $14 million. The system was built with the help of IBM.
“This series of transactions, each focusing on different aspects of the post-trade process, will allow MineHub to incrementally expand the platform’s functionality and scalability into the iron ore and other mineral commodity markets, incorporating real-life user experience,” said Minehub CEO Arnoud Star Busmann.
The platform will integrate processes such as logistics, contracting, specification and financing. The development team is currently working on integration with base metal concentrates, structure finance, and emissions tracking.
The use of blockchain in supply chains has gained popularity as mines and relevant stakeholders seek more ways of improving operations. In 2019, the World Economic Forum (WEF) joined forces with seven metals and mining companies to create a blockchain consortium that enables supply chain transparency and develops sustainability solutions.
According to Head of the Mining and Metals Industry, World Economic Forum,
“Material value chains are undergoing profound change and disruption…the industry needs to respond to the increasing demands of minerals and materials while responding to increasing demands by consumers, shareholders and regulators for a higher degree of sustainability and traceability of the products.”
Cryptocurrency use cases are on the rise. Data provided by Bank of America Securities shows that $1 invested in Bitcoin in 2010, would now be worth over $90,000. Despite recent slides in prices, Bitcoin continues to soar above more traditional investments over the timespan. Analysts suggest that a dollar invested in a 30-year US treasury bond over the same period of time would be worth $2.08 today. Similarly, $1 invested in gold in 2010 would now be worth $1.34. The worth for oil is significantly lower at 0.74 cents.