Open Mineral & ConsenSys To Develop Blockchain Project Minerac For Mineral Trading

Open Mineral and ConsenSys are building a conglomerate of financial organizations and mining companies to develop a blockchain-based mineral trading project called Minerac. Open Mineral is an online physical commodities exchange whereas ConsenSys is a decentralized developer of applications (DApp) from the US.

Minerac to simplify trading process

As per the report, the Switzerland-based exchange and ConsenSys blockchain project will focus on improving supply chain logistics and mineral trading. While explaining the necessity of developing such a blockchain product, Open Mineral’s Chief Executive Boris Eykher said that the overall process including complex logistics and acquiring finances is quite paper heavy. He further added that with the introduction of Minerac, the entire trading process will be simplified thereby increasing both efficiency and profitability.

According to Eykher,”Minerac will allow stakeholders to securely exchange critical trade documents, such as bills of lading and letters of credit, via the use of smart contracts.” He further stated that the newly-introduced consortium has started attracting mining organization and negotiations are already underway with some financial institutions and miners. However, Eykher did not disclose the name of these companies.

According to Eykher, the US-based developer using Ethereum (ETH) blockchain platform has already developed consortiums for trade finance and oil industry and hence has a good experience in building consortiums.

Minerac to address security issues & sustainability problems

Minerac will create a process according to which the sealed containers and bags will be given an ID and this ID will be recorded in the system of Minerac. The system will update the unique information related to each individual parcel with details of location and delivery movement. The project will thus, address the security issues as well as sustainability problems faced by the finance and oil industry.

The process will help to make sure that the high-value minerals are not only safe but all the commodities are from regions free from conflicts. The primary aim of Minerac is to act as a conduit in the minerals supply chain from mining, shipping surveying to financing and warehousing.

Lately, many big industries and companies have turned to blockchain-based technology to ensure seamless execution and efficiency in work. The logistics and supply chain fields have largely welcomed blockchain and have integrated the technology in their regular operations.