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- The World Gold Council (WGC) and the London Bullion Market Association (LBMA) are releasing a blockchain pilot to trace gold provenance.
- The aim is to inspire the gold sector to integrate this technology so that all gold bars are documented and tracked.
- A private permissioned blockchain means that only selected folks would have the authority to upgrade the blockchain.
Two remarkable leviathans in the gold industry worldwide are partnering to develop a scheme to facilitate the investors to trust that Gold is genuine and has been sustainably and responsibly sourced.
Gold Block “Chain”?
The World Gold Council (WGC) and the London Bullion Market Association (LBMA) are together creating a new international system of gold bar integrity, chain of custody, and provenance. It seems like the world’s oldest store of value is now tapping the decentralized ledger technology to prove its legitimacy.
The collaboration has chosen aXedras and a peer ledger to illustrate the potency of their blockchain technology.
aXedras basically generates a product that they address as the Bullion Integrity Ledger, which is a product platform that connects all the stakeholders from the global precious metal industry.
Whereas Peer Ledger utilizes blockchain technology to solve social, environmental, and governance problems in the supply chains globally. And both the entities do not operate a public blockchain or a publicly tradable token; they instead run private blockchains.
Peer Ledger also criticized Bitcoin for using high amounts of energy, whereas their blockchain already utilizes energy amounts that are comparable to cloud-based technologies that the company already uses.
Private blockchain does not maintain the transparency and trustless features of a decentralized public ledger like Bitcoin.
This collaboration aims to inspire the gold sector to integrate this technology so that all gold bars are documented and tracked all through the process from scratch, that is, from mine to jewelry manufacturers.
According to the CEO of LBMA, Ruth Crowell, international trade is wholesale; physical Gold depends upon confidence. The initiative announced highlights the confidence that all the participants in the sector can have in the accountability and integrity of their trade-in Gold and the Gold they purchase. And that this is a primary advance in furthering transparency of the common good of the gold industry.
A private blockchain signifies that only a few chosen folks will have the authority to upgrade the blockchain that is only visible to the authorized users. Given their aim to create proof of providence for the metal sector. It is to look forward to whether this plan proves to be efficient or not.
It’s ironic to see that, on the one hand, Gold is often compared to Bitcoin. On the other hand, now this initiative to integrate blockchain technology into the Gold industry is coming as a bit contrary.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
