Blockchain in mining industry

ALMATY, Nov 9 Reuters - Kazakhstan is struggling to meet the energy needs of its booming cryptocurrency mining industry, which is flourishing thanks to cheap power and an exodus of crypto miners from neighbouring China. The Central Asian nation of 19 million has become the world's second-biggest bitcoin mining location after the United States in recent months, according to the Cambridge Centre for Alternative Finance. Now the government is trying to decide how to tax and regulate the largely underground and foreign-owned industry, which has forced the former Soviet republic to import power and ration domestic supplies. Moreover, local mining farms are mostly powered by ageing coal plants which themselves, along with coal mines and whole towns built around them, are a headache for authorities as they seek to decarbonise the economy. While some people see crypto as the way to a quick fortune, many governments fear that privately operated highly volatile digital currencies could undermine their control of monetary systems, promote financial crime and hurt investors. China last month banned all crypto transactions and mining.

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Content:

• How Does Bitcoin Mining Work?
• As Kazakhstan Descends Into Chaos, Crypto Miners Are at a Loss
• Three Ways Blockchain Is Changing The Mining Industry
• Iran’s government recognises cryptocurrency mining with caveat
• Bitcoin Mining
• ‘Great mining migration’: Power-hungry Bitcoin leaves China
• Blockchain mining delivers flexibility to Sweden’s energy market
• A ‘false solution’? How crypto mining became the oil industry’s new hope
• Supplier Responsibility Projects

WATCH RELATED VIDEO: How does a blockchain work - Simply Explained

How Does Bitcoin Mining Work?

This site uses cookies to deliver website functionality and analytics. If you would like to know more about the types of cookies we serve and how to change your cookie settings, please read our Cookie Notice. By clicking the "I accept" button, you consent to the use of these cookies. The mining and metals industry is a critical component of the global economy. However, many operational and commercial practices remain inefficient and antiquated, leading to critical data omissions, security vulnerabilities and even corruption.

Blockchain technology has the potential to fundamentally change the way the mining industry and connected supply chains operate. Blockchain is an immutable and cryptographically secure archive of records stored on a distributed ledger, which uses smart contracts built on the Ethereum platform. The technology facilitates stakeholders connected on a chain to securely exchange critical trade documents, such as bills of lading and letters of credit, via the use of smart contracts.

The benefits of blockchain technology link perfectly to the commercial and operational aspects of mining, metals and other industries in the broader value chain such as shipping. To say that trade in minerals and metals is a paper-heavy process is an understatement. In shipping, for example, cargo is still for the most part only redeemable against a paper bill of lading.

To make matters even more cumbersome, in shipping, whether in bulk or by container, there are multiple intermediaries forwarding information and documents via email and fax.

Yes, fax. In some instances, cargo is held up at port because the physical paperwork needed to redeem it has not yet arrived. Similar examples can be found across the wider mining and metals value chain, from the letters of credit required for trade finance to the surveying certificates issued by laboratories certifying the grade of a commodity such as copper.

The synchronised nature of blockchain will allow ecosystem participants to be notified of trade developments at the same time. This will result in swifter consensus on additional trade terms, such as a shipment schedule, between parties. In addition, the exact nature of information logged on the blockchain, combined with synchronicity, should reduce the number of disputes and make their resolution more straightforward. Blockchain solutions are applicable to all stakeholders connected to the broader value chain, from financial institutions and ship operators to surveying laboratories, warehouses and many others.

It is hoped this will drive innovation and compliance beyond mining and smelting and into connected industries that might otherwise have lacked the resources to develop technology to address these needs. Mining and metals companies, despite significant improvements in the areas of sustainability and compliance, must continue to innovate and remain up-to-date.

A recent report by CNN suggested that child labour was still a prominent issue in relation to the mining of cobalt, for example. Socially responsible, tech-empowered consumers are already scrutinizing the circumstances connected to minerals and metals, such as cobalt, found in their cars and smartphones. The influence these stakeholders currently have on the opinions of their peers through social networks is already evident, and the prominence of this tendency is likely to increase.

An additional dimension and benefit of blockchain can be leveraged to develop applications that address compliance, transparency and accountability. This will reduce errors and create greater overall transparency, eliminating the potential for malevolent actors to take advantage of loose record keeping. Blockchain can also be used to develop comprehensive end-to-end tracking of ores and minerals.

The process would require sealed bags or containers of concentrates and ore to be stamped with a unique identifying ID that will subsequently be logged on the blockchain. The ID will contain information on the quality and quantity of each parcel of ore or concentrate, as well as being continually updated with an ongoing timeline tracking and logging movements. The initial applications of this are twofold; first, it will provide clients with peace of mind when transporting high-value minerals, and second; it will help confirm that the minerals being purchased are from compliant and conflict-free regions.

However, the risk that concentrates and ores could be mixed with materials of undetermined origin prior to being sealed in a bag and assigned an ID remains a possibility.

The future of both blockchain and the digital economy is still undetermined; however, the technology is evolving quickly and so far it is clear that there are compelling use cases for the mining, metals and connected value chains. Early adoption and experimentation will at the very least better prepare organisations for what is set to be a fundamental part of business technology going forward, but could also establish pioneering new frameworks for conducting and managing sustainable, international trade flows.

Minerac will be jointly developed and led by blockchain venture studio ConsenSys and Open Mineral, a cloud-based marketplace for metal concentrate trade..

The views expressed in this article are those of the author alone and not the World Economic Forum. Udokan Copper shares challenges and a strategy for more sustainable mining practices so copper can feed cleaner technology solutions with fewer emissions. I accept. Global Agenda Mining and Metals Blockchain 4 ways blockchain will transform the mining and metals industry. By cutting out paper, improving tracking and allowing data sharing, blockchain is set to revolutionize mining for ever.

Take action on UpLink. Forum in focus. Global ledger uses public data to help businesses turn green pledges into a green future. Read more about this project. Explore context. Explore the latest strategic trends, research and analysis. Have you read? From predictive analytics to mining virtual markets: the tech that offers hope for wildlife How can mining become more sustainable?

From diamonds to recycling: how blockchain can drive responsible and ethical businesses. License and Republishing. Written by. More on Mining and Metals View all. The Udokan project: How sustainable mining can feed clean tech Udokan Copper shares challenges and a strategy for more sustainable mining practices so copper can feed cleaner technology solutions with fewer emissions.

Alisher B. Usmanov 19 Jan Clean energy transition: how can we meet the metals demand? The answer to the aluminium industry's emissions issue? The energy transition needs metals. Join the Forum.

As Kazakhstan Descends Into Chaos, Crypto Miners Are at a Loss

Today, Bitcoin consumes as much energy as a small country. This certainly sounds alarming — but the reality is a little more complicated. How much energy does an industry deserve to consume? Right now, organizations around the world are facing pressure to limit the consumption of non-renewable energy sources and the emission of carbon into the atmosphere. As cryptocurrencies, and Bitcoin in particular, have grown in prominence, energy use has become the latest flashpoint in the larger conversation about what, and who, digital currencies are really good for.

Three Ways Blockchain Is Changing The Mining Industry

With the establishment of cryptocurrency, the era of a new means of payment has been ushered Crypto Mining in. We started with Bitcoin, which was first described in by the Japanese Satoshi Nakamoto in the Bitcoin white paper. His idea: The establishment of a digital currency. This should be organized decentrally, i. The maximum number of Bitcoins should be limited to a total of 21 million, in order to exclude inflation from the outset. Unlike central banks, however, Bitcoin units are not printed like banknotes, for example, but can only be generated digitally by computing power. These are then lined up in a linear sequence and linked together via a decentralized peer-to-peer network. The check number in turn contains the individual hash values of the current transaction as well as the hash values of the respective previous transaction.

Iran’s government recognises cryptocurrency mining with caveat

Bitdeer — a firm spun off from Chinese bitcoin mining giant Bitmain — is four-tenths of a mile down the road from Riot Blockchain , one of the biggest publicly traded mining companies in America. Both are tenants of property once occupied by aluminum maker Alcoa , but they share little else in common. Riot's Whinstone mine is run by a team that thrives on transparency and throws open its doors to media on a daily basis, while Bitdeer is aloof, steeped in mystery, and definitely not keen on visitors. Located an hour northeast of Austin, Rockdale looks like classic rural America. There are rolling hills, pastures of green grass, hay bales, a Walmart — which Mayor John King says is the main driver of sales tax, a key revenue stream for the city's annual budget.

Bitcoin Mining

Get updates on the latest posts and more from Analytics Steps straight to your inbox. With all of the excitement around Blockchain , virtually everyone believes it has come to transform the world. With its capacity to increase openness and fairness while also saving businesses time and money, technology is influencing a wide range of industries in ways ranging from contract enforcement to government efficiency. But first, we must comprehend what blockchain mining is and the many forms of blockchain mining. When using bitcoins or other cryptocurrencies , blockchain mining is a process that verifies each stage of the transaction. The people participating are known as blockchain miners, and their primary goal is to confirm the movement of cash from one computer in the network to another through a maze of computing gear and software.

‘Great mining migration’: Power-hungry Bitcoin leaves China

This site uses cookies to deliver website functionality and analytics. If you would like to know more about the types of cookies we serve and how to change your cookie settings, please read our Cookie Notice. By clicking the "I accept" button, you consent to the use of these cookies. The mining and metals industry is a critical component of the global economy. However, many operational and commercial practices remain inefficient and antiquated, leading to critical data omissions, security vulnerabilities and even corruption.

Blockchain mining delivers flexibility to Sweden’s energy market

At the webinar organised by the Consultative Commission on Industrial Change CCMI , EESC members, external delegates and stakeholders of the mining industry assess the impact of new technologies in the sustainable production of raw materials, highlighting benefits, limitations and potential risks from a social point of view. Blockchain technologies are an important step forward in the mining industry and could represent a new solution for future mining activities, but the digital transition should be carefully managed, taking into account the social consequences. Mining companies which embraced the digital transition have recorded improvements in terms of safety, sustainability, productivity and profits. More specifically, blockchain represents the future in this area, but its governance needs to be discussed and established.

A ‘false solution’? How crypto mining became the oil industry’s new hope

RELATED VIDEO: Ep 11. How Blockchain is Revolutionizing the Mining Industry

Communicate responsibility with Product Passports. Secured on the blockchain. I'm Upstream I'm Downstream. What is a Product Passport? A digital product ID that makes trade easier. Highlight your sustainability to clients and be recognized for your efforts.

Supplier Responsibility Projects

When Denis Rusinovich set up cryptocurrency mining company Maveric Group in Kazakhstan in , he thought he had hit the jackpot. Next door to China and Russia, the country had everything a Bitcoin miner could ask for: a cold climate, legions of old warehouses and factories where the mining rigs could be installed, and—especially—dirt cheap energy to power the electricity-guzzling process through which cryptocurrency is minted. Less than a year later, the initial buzz is history: Miners are now being confronted with frozen machines, popular unrest, and Russian troops roaming across the country. And leaving is not an option. Last week, chaos engulfed Kazakhstan as protests in the south of the country over a spike in fuel prices resulted in police repression, the removal of former president Nursultan Nazarbayev from his role as head of the security council, and an internet shutdown. Russian-led troops acting under the orders of the CSTO, a military alliance of post-Soviet states, were deployed to the country.

We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. To learn more or opt-out, read our Cookie Policy. Congress members sent a letter to companies mining Bitcoin in the US.