Building a Blockchain Platform for the Mining Industry

According to international research, the Blockchain market is predicted to grow to 39.7 billion USD in 2025. This rapid growth creates an increasing need for Blockchain platform development. The banking sphere was the first to invest in and adopt this technology; however, other industries, like mining, also keep up with the latest tech trends.

Here we will discuss what Blockchain technology is, how it works, what the Pros and Cons of this technology are, and how Blockchain is changing mining and metal supply chains.

What Is the Blockchain Origin?

Blockchain technology was first mentioned in 1991 by Stuart Haber and W. Scott Stornetta. These mathematicians wanted to create a system where document timestamps could not be tampered. In the late 1990s, Cypherpunk Nick Szabo proposed using Blockchain to secure a digital payment system known as bit gold.

Thus, Blockchain is a record-keeping technology created to prevent the system from being hacked or stored data from being forged, making it top secure and immutable. The Bitcoin cryptocurrency was the first widespread application to use Blockchain successfully. For this reason, Blockchain is often associated with Bitcoin and its alternatives.

Nowadays, Blockchain has various working functionalities apart from Bitcoin. Healthcare, fintech, supply chain, logistics, mining industries, and many other fields use this technology to build applications and platforms.

Pros and Cons of Blockchain in Supply Chain

To have a bigger picture, let’s dive deep and see the advantages and disadvantages of this popular technology in the supply chain.

Pros come first.

  • Decentralized structure. Blockchain supports sharing data within a business network where no single entity is in charge.

However, we need to mention some Cons of the Blockchain technology too.

  • System support. Many blockchain-based solutions need help from other systems and processes to verify that the data being added to Blockchain is accurate — for example, the use of Blockchain for the supply chain management.

How Blockchain Is Changing Mining and Metal Supply Chains

How blockchain is changing mining and metal supply chains

The mining and metal market has suffered the inefficiencies of paper-based, manual processes that have impacted industries’ performance for a long time.

The need for transparency and strict ESG compliance regulations has pushed this sector towards adopting the Blockchain technology and solutions to address these challenges. MineHub, FOBI AI, Glencore, Aspen Technology, and Minespider are leading companies turning to Blockchain solutions.

This innovative technology brings transparency, scalability, reliability, and traceability to mining supply chains allowing these companies to track the metals and mining supply chains for transparency in carbon emissions, water use, human rights, and finances.

Let’s move on to the actual steps needed to build a Blockchain platform for a mining company.

Tips to Build a Secure Blockchain Platform

The supply chain that deals with mining and raw minerals like tin, tantalum, cobalt, or gold is very complex. We can divide this process into several steps.

First of all, the minerals are mined, then a transporter delivers the minerals to a processor. The processor makes all preparations for the manufacturing process. Finally, transporters mix minerals from multiple sources before they make it to a processing facility. And this complex process requires high tracking transparency based on the Blockchain technology.

Let’s see the main steps a mining business can take when building a blockchain-based solution.

  1. Find a professional software development team with experience and experts in this domain;

In our original article, you’ll find more practical insights from our developer based on the Minespider case study. Follow the link to read it in full.



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