Many intermediaries and third-party logistics companies participate in the gold trading process, ranging from extraction to retailing, and a good portion of these supply chains are relatively inefficient. Amidst the blockchain hype, recent technological innovation is making gold production more efficiently trackable. In the past, the paperwork needed in the gold mining process was recorded independently, which made it difficult to merge all relevant data and provide a full picture to investors. However, as technology improves, GoldFinX’ blockchain solution offers new ways to track the entire process of artisanal gold production.
Boosting small gold mining productivity
GoldFinX smart contracts automatically execute the digital assets transaction between parties when predetermined conditions are met. This system significantly reduces data entry error, fraud and delay.
“The reason why people do not invest in artisanal gold mining can be attributed to the source of gold probably being unethical, such as from forced labour, inhumane work conditions, or child labour. Institutional investors avoid investing in gold mines as they may get involved in legal disputes or PR disasters .” GoldFinX CEO Philippe Bednarek pointed out. “Gold mining is a time-consuming process involving numerous stakeholders. For conservative investors who expect higher security, smart contracts can drastically enhance the trust and transparency of this investment process.” These services ensure that the source of gold is accurately recorded, and in turn meet financial regulatory restrictions, prohibiting transactions without proper records or sources. The smart contract is a convenient game-changer for tracking small-scaled gold mine transactions.
Investors can now divest their capital from the exhausting industrial gold mine to ASGM without worries. GoldFinX helps to build investors’ trust in the artisanal gold mining industry, mostly before they become a hot-pick on Wall Street. The distributed financing establishes a traceable supply chain management system to ensure the untameable integrity of the original extraction source. This new function will comply with the regulatory needs of financial sectors and update previously undocumented sources.
Higher Legitimacy of Gold Mine
Miners can sell gold at higher prices through the established GoldFinX channels. They can minimise expenses as they bypass banks and agents for unnecessary paperwork. Moreover, more investors will plough money into gold mines when the fear of illegal gold sources is waived. Miners are also less likely to fall victims to forced labour or gold mine sweatshops since GoldFinX smart contract prohibits trading undocumented, illegal gold.
In Summary
With the help of smart contracts, the digitised supply chain of artisanal gold mining will have a higher level of automation. It also consolidates a trust mechanism that enables investors to monitor the entire process from gold production to delivery. More importantly, miners’ production will enjoy higher legitimacy and reputation. The more transparent the gold source, the more attractive it is to investors. The Smart contract will bring a whole new world to artisanal gold miners with more capital and profits.
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