• By admin

How Blockchain Can Help Modernize
the Mining Industry

It's no news that the mining industry is a lucrative sector, with lots of potential. It's a crucial component of the worldwide economy that has contributed immensely to modern civilization. There’s no doubt that the industry is rapidly growing. According to Statista, the top 40 mining companies globally generated a net profit of about $159 billion. These companies, which are about 60% of the industry, generated over $700 billion in total revenue. All these were achieved amidst the unfortunate pandemic that crashed the world economy. Despite the earning potential, there are pitfalls and risks that you may face.

X-raying the Problems of the Mining Industry

The path to mining these minerals and their supply chains has become cumbersome. Furthermore, the traditional mining method has become too rigid, antiquated, and expensive. Most of these minerals are found over 500 feet below the surface, which requires expensive equipment to extract. In an industry where commercial practices are still paper-based, millions of dollars are lost each year to theft and fraud due to security vulnerabilities and lack of data transparency. When these materials are extracted, they move between chains, each of whom must verify some papers. In the course of this verification, avenues are created for exploitation. Due to the paper-based model, tracking these minerals becomes a Herculean task.

The trading aspect is also outdated. It’s so traditional that the seller has to check and manually confirm if the contract with the buyer is still valid or has been fulfilled. If an issue develops, the seller and the buyer will be on each other's necks to fulfill the contract. This happens because the process is wholly dependent on intermediaries. The back and forth is energy-draining, and more money is spent

Besides, the current strenuous mining practices have made the working conditions unsafe for workers around the globe. Minerals like granite aren’t easily found in the most hospitable locations. They need to be mined responsibly and sustainably to avoid any blowback on the workers and the environment. However, this has proven very challenging due to the energy expended in the extraction and the method employed.

How Blockchain is Revolutionizing the Mining Industry for the Better

The mining sector has long suffered the effects of paper-based practices, resulting in reduced performance. The need for transparency, in correlation with stricter ESG compliance rules, has pushed the industry to adopt blockchain solutions to mitigate the challenges in the sector. Blockchain adoption will bring transparency, scalability, security, and traceability to the industry, particularly in supply chains. Blockchain has the potential to modernize the mining industry due to its immutability and cryptographic attributes. One company that is leveraging blockchain to address these challenges is Metallika.

Metallika is a blockchain-based company that increases access to mining services and products through tokenization. The company is leveraging the power of decentralized technology to improve mining efficiency at a reduced cost. One of the objectives of Metallika is to reduce the entry barrier for investors incapable of investing big in an industry that's capital intensive.

Metallika aims to use blockchain to bring the following changes to the mining industry:

1. Ensure Compliance

Mining companies must remain updated with the industry's rules and regulations, despite significant improvements in compliance. A CNN report reveals that child labor is still a relevant issue in the mining of cobalt in DR Congo. With this brought to light, industry players will step up to ensure that mining companies are accountable for where they purchase or extract the minerals. By leveraging blockchain, Metallika will address these compliance issues. All parties involved in mining will have access to the data and stay updated. It results in greater transparency and eliminates potential malicious actors.

2. Expedite Transactions

The nature of blockchain expedites transactions and allows mining participants to be notified of any trade development simultaneously. It happens as a result of automation, driven by smart contracts. With Metallika, consensus will be reached faster and intermediaries will be removed. That means minerals will move from the point of mine to the sellers. Besides, the information logged on the blockchain, combined with scalability, will reduce the number of disputes and make resolutions more convenient.

Metallika solutions will apply to all investors connected to the value chain, from financial institutions and shipment to warehouses. Being connected will drive innovation and strengthen compliance.

3. Drive Paperless Process

The mining industry is heavily reliant on paper. Cargo shipping is paper-based – you will have to deal with several documents that need to be signed by intermediaries and other players involved in the transaction. Sometimes, the shipment may be held up at the port because the physical paperwork required to redeem it is yet to arrive. These processes are cumbersome and time-draining. With Metallika, all the data is stored on the blockchain to reduce paper documentation and speed up transactions. This act will lead to greater transparency and traceability of minerals. Additionally, paperless transactions will save costs and lead to stronger security.

4. Improve Supply Chains

With Metallika, tracking minerals and ores is made easy. Each bag of minerals will have a unique identifier that will be logged into the blockchain company to ease tracking. The ID will have all the information about the mineral and will be continually updated as it moves between several points. It will provide clients with peace of mind and verify that the minerals are from compliant/conflict-free regions. Plus, it reduces the chances of the minerals being mixed with others.

5. Reduce Complexity in Mining

Mining, as you know, is a series of complicated processes that involves exploration, extraction, feasibility, and production. However, it’s too expensive for a commoner to participate. Metallika has unveiled a plan to onboard these people through tokenization. By purchasing the native token METALLIKA, smaller investors can invest in the industry without actively participating. This digital token will represent a specified quantity of minerals that Metallika offers, such as graphite, granite, and beach sand. Not only that. Holders will access valuable insights and data that will influence their investment decisions.

Metallika, through blockchain, can take the mining industry to a whole new level of immense success. Clearly, the technology can offer the industry more than envisioned. There are compelling use cases for mining. Early adoption is the key to making the sector more sustainable and rewarding. You can invest in the mining sector by purchasing METALLIKA today.

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