02nd Global Gold Dore Forum on 14-15 Jan 2018 at Hilton Dubai Jumeirah, Dubai, UAE. Concluded Successfully...
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‘Distributed Ledger’ can Establish Trust across the Gold Supply Chain

 

Scott D. Austin, Executive Senior VP, Everledger, speaks about benefits of ‘distributed ledger’ in blockchain technology that can support the precious metals industry immensely in establishing trust across the supply chain. Excerpts…

Blockchain technology has created sensation all over the world and people are using this technology across industries. In precious metals it is no longer an exception. Tell us what kind of work you company is currently engaged with?

Everledger is best known for the kind work done in diamond industry, creating a platform of trust around the provenance around the diamond. Where it came from, who owns it now are addressed. Subsequently, it applies to gold. We are looking to creating a similar form of trust around the gold industry and that has the fundamental benefit of really supporting the trust in the collateral, financial services and ethical trade around gold.

How does it work?

I prefer the term ‘distributed ledger’. I think this provides the real image how blockchain technology works. In it you have many transactions or DNA around the transactions or in our case an object that together provide consensus around the object’s history, its provenance, and built a trust as a result of independent participation across the supply chain.

Through this technology, can I track gold right from mine to end user?

That’s certainly the ambition. These things do not happen overnight. It requires embedding of a technology platform and infrastructure for the industry; we need industry to trust this platform which really has the benefit of serving the industry best in the long term. It is a long journey.

Now coming to the question of how can we track the gold? It depends upon level of participation and generally, if you have participation across the supply chain, (you have various form of identification around that blockchain) point of provenance can be embedded. For example, where the gold is cast, distribution elements of gold, trading element and subsequently refining of gold bullion can be embedded. Subsequently, if you have all of these positions in supply chain, which are able to deposit key data on the blockchain, supported by other technology that authenticate the secured trusted tamperproof technology throughout its supply, then ultimately one can say that we have provenance and trust around the history of that gold.

Who are your target customers?

At Everledger, we go work closely with industry. So, there is no one point that we are looking at underlining the trusted platform for vertical supply chain. Everyone in the industry essentially needs to participate and adopt the technology in order to get the maximum success.

How did you enjoy the conference?

This conference is excellent. It is good to see participants from around the world gather here to support Singapore and other ASEAN countries in promotion of the industry. SBMA has been doing fantastic job as always.

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