Blockchain is the best technology to keep inventory on gold and diamonds

During the last week, there was great news in the precious metals market. The largest diamond company in the world, Alrosa, became a believer in the blockchain. The company announced that it would adopt blockchain technology in an attempt to increase transparency in the production and supply chain process. This news came shortly after JPMorgan made a move to make gold on the blockchain.

Blockchain and precious metals

For a while, the blockchain is penetrating the precious metals sector. This industry relies heavily on supply chains as thousands of goods pass through various geographic areas before they reach their final destination. Technology has been used to reduce corruption and increase efficiency when monitoring these precious resources during each milestone in the transportation process.

Blockchain has been used to improve the gold industry. This fact has been established. On October 19, a giant in the gold and silver trade, the London Bullion Market Association, announced that it was making plans to improve transparency and modernize the industry using blockchain technology. Blockchain technology can be used to identify and remove illegally extracted or illegally traded metals. If it is also possible to identify the metals used to finance the conflict.

In March 2018, Reuters reported that the LBMA asked all its members to express their views on the best way to track gold. 26 proposals were presented by the 144 members of the association. 20 of the 26 proposals concerned the use of blockchain technology to improve the sector. The LBMA said it is making plans to create a project structure that allows them to harness the power of blockchain technology. In the first half of 2019. They are already implementing the standards that will be used for tracking on the blockchain.

When mass adoption takes place, blockchain technology will potentially eliminate corruption in the precious metals sector. This could happen sooner than expected, since there has been an increase in interest in blockchain technology for some time.

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