Blockchain
CRU: With Cobalt from the DRC Rising, Tracing the Source is Vital – Could Blockchain Tech be the Solution
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Cobalt demand has grown by 21% between 2016 and 2018 and CRU forecasts that it will increase a further 55% out to 2023, due to the increasing uptake of electric vehicles.
Currently, the majority of the cobalt supply comes from the DRC (Democratic Republic of Congo) where, in addition to the large-scale global mining companies, artisanal miners utilise small pockets of land not owned by large-scale miners to produce cobalt.
It is believed that as many as 100,000 diggers, sorters and washers are involved in the artisanal mining trade in the DRC. Artisanal miners often work independently and sell their ore to local co-operatives, who sell it to local merchants and traders, who in turn sell to international traders. When done correctly, artisanal mining can be an ethical source of low-cost, high-grade cobalt which also puts income directly into the hands of locals with very few alternative options available to them. Artisanal mining in the DRC has increased dramatically between 2016 and 2018 on the back of strong demand growth and rising prices.
Artisanal mining has been key in satisfying skyrocketing cobalt demand in recent years. However, the practice raises many ethical concerns. Child labour is rampant in the artisanal mining sector, as many regions suffer from abject poverty and lack a functioning schooling system – in 2014, UNICEF estimated that 40,000 children were involved in artisanal mining of all commodities produced in the DRC. As a result, Western companies have sought to distance themselves from artisanal cobalt supply in the past to forego the risk of inadvertently using raw materials sourced from child labour. The low wealth generated by these practices has also come under scrutiny. Traders of artisanal cobalt concentrates will typically sell material for around 40-50% of its cobalt value, while the artisanal miners will typically only receive 1-3% of the intrinsic value of their ore. A lack of reliable information and the complexity of the supply chain makes artisanal mining far more challenging to track as a source of cobalt supply than traditional mining sources.
Can Blockchain provide a traceability solution?
Blockchain technology can increase transparency in mineral supply chains and provide a traceability solution, while reducing the need to have a one central owner of the database. A Blockchain system starts with a mine site audit to check there is no child labour. Once the audit is passed, the mines are given ‘approved bags’ with bar codes into which the ore is placed before sealing and being passed to merchants and traders. The bar codes can be scanned at any point, and the ore’s journey can be tracked on a public ledger which is where the Blockchain comes in.
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Blockchain
Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin)
Blockchain technology continues to drive innovation across industries, reshaping finance, infrastructure, and philanthropy. Today’s news roundup explores exciting developments in blockchain ETFs, tokenization funding, quantum-resistant chips, public blockchain initiatives, and impactful social projects. Here’s a deep dive into the latest blockchain headlines:
BlackRock ETF Embraces Blockchain with First Muni Bond Purchase
BlackRock’s blockchain-focused ETF has made its first foray into municipal bonds, signaling increased confidence in integrating blockchain technology with traditional finance. The ETF’s strategic investment demonstrates how blockchain can enhance transparency and efficiency in bond markets.
By tokenizing municipal bonds, BlackRock aims to simplify trading and settlement processes while reducing associated costs. This development underscores the growing role of blockchain in transforming financial instruments and fostering greater market accessibility.
Source: Yahoo Finance
Plume Secures Funding for Tokenization Platform
Blockchain fintech company Plume has raised significant funding to advance its tokenization platform. The company’s innovative approach enables businesses to convert real-world assets into digital tokens, streamlining asset management and unlocking liquidity.
Tokenization is rapidly gaining traction as a game-changer in sectors such as real estate, art, and commodities. Plume’s success reflects a broader trend of investment in blockchain solutions that bridge the gap between traditional assets and decentralized technologies.
Source: Fortune
SEALSQ and Hedera Partner for Quantum-Resistant Blockchain Chips
SEALSQ and Hedera have announced a groundbreaking collaboration to develop quantum-resistant chips designed to secure blockchain infrastructure. These advanced chips will provide robust protection against future quantum computing threats, ensuring the integrity of blockchain networks.
As quantum computing capabilities evolve, safeguarding blockchain ecosystems becomes increasingly critical. This partnership highlights the importance of proactive measures in maintaining the resilience and trustworthiness of decentralized systems.
Source: The Quantum Insider
Deutsche Bank’s Public, Permissioned Blockchain Initiative
Deutsche Bank’s Layer 2 blockchain solution is set to go public and operate as a permissioned network, according to its tech partner. This initiative aims to strike a balance between accessibility and security, leveraging blockchain to streamline financial services and enhance operational efficiency.
The decision to adopt a public, permissioned model reflects a growing trend among enterprises seeking to harness the benefits of decentralization while maintaining control over sensitive data. Deutsche Bank’s approach could serve as a blueprint for other financial institutions exploring blockchain adoption.
Source: CoinDesk
KuCoin’s “Light Up Africa” Initiative Brings Hope to Thousands
Cryptocurrency exchange KuCoin has made a significant impact through its “Light Up Africa” donation ceremony in Ghana, benefiting 36,000 children across the continent. The initiative combines blockchain technology with philanthropy to address energy poverty and support education.
By leveraging blockchain for transparency in charitable contributions, KuCoin sets an example of how the crypto industry can drive meaningful social change. The project demonstrates the potential of blockchain to empower communities and foster sustainable development.
Source: PR Newswire
Industry Implications and Key Takeaways
Today’s developments highlight the transformative potential of blockchain across multiple domains:
- Integration with Traditional Finance: BlackRock’s ETF underscores the synergy between blockchain and established financial systems.
- Tokenization Trends: Plume’s funding success reflects the growing demand for digital asset solutions.
- Quantum-Resistant Technologies: SEALSQ and Hedera’s partnership addresses emerging cybersecurity challenges.
- Enterprise Blockchain Adoption: Deutsche Bank’s public, permissioned network showcases the adaptability of blockchain in financial services.
- Social Impact: KuCoin’s philanthropic efforts illustrate blockchain’s capacity to drive positive societal outcomes.
The post Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin) appeared first on News, Events, Advertising Options.
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