Gold now needs blockchain in an ironic twist of fate | CryptoSlate


Two of the most notable players in the global gold industry are collaborating to design a scheme to help investors “trust that their gold is genuine and has been responsibly and sustainably sourced.”

The London Bullion Market Association (LBMA) and the World Gold Council (WGC) are developing a new international system of gold bar integrity, chain of custody, and provenance. The world’s oldest store of value is ironically reaching out to decentralized ledger technology to prove its legitimacy.

How To Get Free Crypto  

The partnership selected aXedras and Peer Ledger to demonstrate the efficacy of their blockchain technology. aXedras produce a product they call the Bullion Integrity Ledger™, a “product platform that connects all stakeholders of the global precious metal industry.”

Meanwhile Peer Ledger “use blockchain technology to solve environmental, social and governance problems in global supply chains.” Neither company runs a public blockchain or publicly tradable token.

The news is not necessarily bullish for the broader crypto market. Both companies operate private blockchains instead of a public ledger that most people are familiar with.

Further, Peer Ledger criticized Bitcoin for using “copious amounts of energy to perform,” whereas their blockchain’s “energy consumption is comparable to other cloud-based technologies companies already use.” Private blockchains remove the transparency and trustless nature of decentralized public ledgers like Bitcoin or Ethereum.

Coinbase Banner  

The goal is to inspire the gold industry to adopt this technology so that all gold bars are documented and tracked throughout the entire journey from mine to jewelry manufacturers.

Ruth Crowell, Chief Executive Officer, LBMA, commented:

“The international trade in wholesale, physical gold depends on confidence. The initiative announced today underlines the confidence that all participants in the market can have in the integrity and accountability of the gold they trade, and the gold they buy. This is a major advance in furthering transparency for the common good of the gold industry.”

A private, permissioned blockchain, means that only a selected number of individuals are authorized to update the blockchain, which is only visible to authorized users. Given their goal to create a “proof of providence” for the precious metals industry it seems counterintuitive to use a system that can be easily changed by authorized individuals. An auditor cannot know that they have been given the correct version of the ledger if they do not have full visibility of the blockchain.

The simple question becomes, what is the point? The gold industry is experimenting with blockchain within a remit that renders moot the best parts of the technology. A cynical person may think the initiative has been designed to fail. Bitcoin is the biggest threat to gold’s position as the world’s premier store of value after all.

Go to Source
Author: Liam Andrew Wright

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.