With gold’s consistent value and vulnerability to fraud, transparency is both incredibly difficult and profoundly important. Blockchain could hold potential to act as a facilitator in gold tracking projects. However, it won’t do it on its own.

Blockchain technology provides immutable and transparent nature. The gold industry faces fraud, imitation and governance problems, and as of yet there has not been a reliable, efficient solution. We could solve this with the help of blockchain.

Help, not a solution

Blockchain will never be the solution to tracking on its own.

This is because blockchain technology isn’t its own product or platform. In simple terms, it functions as a database that stores data in a transparent and permanent way. This database can’t track your gold on its own.

Instead, it’s necessary to implement tracking methods such as RFID tags or photographic evidence that can be uploaded to a blockchain-backed platform.

The real solution

To identify and mitigate risk in gold supply chains, we need a blockchain-backed platform that can identify and analyse gold fraud. Instead of relying on blockchain to do all the work itself (which it can’t), we must create an integrated solution to the imitation and fraud problem.

This will be the only ‘real’ solution.

There are other areas in which blockchain is a good fit for gold. For example, the technology can help to track gold supply chains to identify any cases of illegally and unethically sourced gold. This has taken interest globally of recent times, with companies such as IBM participating in a blockchain-backed jewellery tracking initiative.

This appeals to the wider public: consumers gain peace of mind, and companies benefit from an improved ESG reputation. Implementing blockchain-backed supply chain management provides a single source of truth that inspires faith and trust in consumers.

Blockchain technology has profound potential to transform the gold industry in a variety of different ways. Blockhead Technologies is securing supply chains with blockchain-backed STAMP Supply. You can find out more here or download our free STAMP Supply eBook here.