The British Royal Mint to use Live Blockchain For Tracking Gold
Nov 04, 2017 Posted / 8325 Views
At the London Blockchain summit recently, a demonstration of how Blockchain can be used to track Gold was showcased by Nicola Robinson, senior strategic marketing manager at the U.K.'s Royal Mint. Mr. Robinson passed a gold bar to the audience and conducted a stunch to show how difficult it can be to trace the gold bar. He then later presented how blockchain technology can help release some of that difficulty. Blockchain however can not be used to store physical call but it can be used to manage ownership of the precious commodity. The Royal Mint gold runs a platform for trading gold instantaneously with its first transaction completed around august this year. On the role of Blockchain towards the success of Gold Business Robinson said,
“ The Royal Mint Gold has created a digital presentation of the real Gold in a Blockchain platform. Our platform is updated every second to update with latest price charts of Gold across different markets around the world.”
Blockchain will help in managing ownership of the Gold as it changes hands from one person to another implying that the ownership of the Gold at every time is recorded on the Blockchain. This way a bullion obtained in wrong ways or stolen can be traced on the online sales counter. Owners of Gold are given certificates to show that they legally obtained that amount of Gold. to sell the Gold the certificate is required for verification of ownership. This way with a database of all legal certificates in a blockchain, illegal gold can be trapped during their sales. In major Gold markets, the commodity is processed into bars before it is traded but in small markets commonly seen in Asia and Africa middlemen buy gold directly from the miners on site and resell it to bigger traders. The current market price of a kilogram of Gold stands currently at over $40,000 with a rather low fluctuations in prices.
Recently Royal Mint partnered with the Chicago Based Exchange Group CMI to develop a platform that would be used for trading Gold. According the CMI Group the new trading platform built with technology companies Alpha Point and BitGo was already in it’s testing stage. On the new platform Royal Mint Gold (RMG) will be traded as a digital token to institutions with every RMG representing the value of 1g of Gold. Transactions on the platform will be stored on a Blockchain that allows a network of Computers to keep track of all the transactions and verify asset ownership on the platform. Royal Mint will produce up to $1 Billion worth of RMG available for transaction on the Trading platform. Igor Telyatnikov, president and chief operating officer of AlphaPoint said,
“Blockchain technologies come with Higher levels of traceability and audits since participants are given permanent immutable records of ownership and chain of ownership custody”
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