This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Gold supply chain management system
Blockchain-based system
for end-to-end tracking of gold
Blockchain solution enabling gold supply chain transparency and efficiency
This custom web & mobile application integrates with the Ethereum private blockchain network for managing gold bar production and delivery from end to end, controlling their quality and origin, and providing a complete history of evidence for the end client.
Business context
Gold mining industry is subject to multiple environmental and labor regulations from the World Gold Council and continuous financial investigations. The solution was created for compliance purposes as a secure tool for verifying that gold is mined without violating human rights or safety regulations.
Whatās more, the system has become a trustworthy source of consolidated data detailing the movements of every gold transaction for all supply chain participants, including any violations. The system verifies that gold mines have attained all the necessary certifications and comply with every regulation: CRAFT code, Market Entry Standard, Fairmined Standard, etc.
There are a vast number of companies that take part in the production and supply of gold all over the world (factories, refineries, jewelers, etc.). Until very recently, they have only been able to manage their particular part of the gold lifecycle without a consolidated view of the goldās origin and the entire chain of movement.
Business challenges to overcome
Meeting compliance requirements is a challenging and complex task for gold mining and production companies as the process of collecting and presenting proofs of evidence often experiences delays and requires substantial financial investments to complete.
Lack of real-time visibility and transparency into the origin of mined gold
Gold supply chains are complex, making transparency challenging. Due to its value and ease of transport, gold is easy to smuggle, exchangeable worldwide, and traded anonymously via cash transactions. All of this makes even the smallest amount of gold difficult to trace.
Need for a secure method that is capable of verifying responsible sourcing
The mining and jewel sectors have begun to use sustainability certification as a means to assure consumers, supply chain participants, and other stakeholders that gold production is taking place in a sustainable manner - without environmental and human rights violations. Regulatory institutions need a secure tool capable of controlling the availability of all required certifications within the production and supply lifecycle of mined gold.
No unified source of information for tracking data authenticity
Each supply chain member is responsible for managing the internal data relating to the processing of gold on their own. Thus, there is no platform capable of combining data from different members in the chain and providing a service for use and verifying data for gold tracking.
Gold supply chains are complex, making transparency challenging. Due to its value and ease of transport, gold is easy to smuggle, exchangeable worldwide, and traded anonymously via cash transactions. All of this makes even the smallest amount of gold difficult to trace.
The mining and jewel sectors have begun to use sustainability certification as a means to assure consumers, supply chain participants, and other stakeholders that gold production is taking place in a sustainable manner - without environmental and human rights violations. Regulatory institutions need a secure tool capable of controlling the availability of all required certifications within the production and supply lifecycle of mined gold.
Each supply chain member is responsible for managing the internal data relating to the processing of gold on their own. Thus, there is no platform capable of combining data from different members in the chain and providing a service for use and verifying data for gold tracking.
Blockchain-based solution for gold supply chain tracking
01
Gold is mined, QR code is applied to each ingot to track it
02
Gold ingots
are in transit
to refinery
are in transit
to refinery
03
QR code is scanned, unique hash is recorded in blockchain
04
Gold bars are transported to the jeweller
05
QR code is scanned, unique hash is recorded in blockchain
06
Gold bars are
transported
to the vault
transported
to the vault
07
Jeweller verifies gold quality and shipment details in the system
08
QR code is scanned, unique hash is recorded in blockchain
Technological challenges for Unicsoft team
Tracing something that is constantly changing
Our highest priority was coming up with a way to track the origin of every gram of gold electronically. Issues arise because the supply chain of gold involves a number of different factors and variables that have to be taken into account:
As a result, the original "product" is crushed into smaller components. It is necessary to track the journey of each component back to that original ingot from which it was forged.
01
a mine produces large ingots of unrefined gold 03
other institutions can melt these slivers into smaller pieces 02
refineries clean it and one unrefined gold ingot is used to produce several bars
of a smaller size of high-grade gold As a result, the original "product" is crushed into smaller components. It is necessary to track the journey of each component back to that original ingot from which it was forged.
Ensuring system security
It was expected that the system would store a large amount of genuine information about a cache of goldās origin, quality, movements, and transactions.
Since this data is sensitive may be subject to legal violations and supply chain frauds, we had to ensure it could never be hacked, lost, or compromised.
Since this data is sensitive may be subject to legal violations and supply chain frauds, we had to ensure it could never be hacked, lost, or compromised.
Solution
End-to-end gold bar tracking
In order to account for each piece of gold created within the gold production cycle, we applied a QR code to each gold ingot and every derivative of an individual ingot.
For this purpose, we developed a custom system for registering every operation and displacement of gold:
The logic of the ingotās operations is programmed in the form of smart contracts, so their consistency can not be altered by anyone. This ensures trust and transparency for the entire supply chain.
Immutable data storage
Due to its integration with the Ethereum private blockchain network, the system can guarantee the storage and absolute security of all sensitive information from different companies about the movement of gold.
Since all transactions are recorded in blockchain nodes, it is impossible for hackers to alter data or ācheatā the system.
Strict continuity of supply chain flow
The system ensures a specific flow for the lifecycle of gold production and delivery statuses that are strictly defined in a smart contract. Thus the possibility of the flow being hacked or altered is all but eliminated.
Only after meeting every strict condition pertaining to the particular status of the gold supply chain are you allowed to execute the code using EVM (Ethereum Virtual Machine) and apply the next relevant status update.
IAM (Identity & access management)
The system features different levels of management and access for user roles to guarantee process security and eliminate unauthorized actions.
Superadmin (back-office role)
has the right to view the list of registered companies within the platform, manage them, create new companies, and perform similar actions with users
Account Manager
responsible for their company and has complete access for adding and reviewing the profiles of new users (account managers and site managers, except operators)
Site Manager
handles their companyās information and users, manages the companyās gold stocks: creates new gold bars in the system, initiates new deliveries, and tracks gold
Company Operator
can send and receive gold batches, verify gold parameters and waybills with the help of QR code scanning, reports cases of potential fraud using the mobile application and special form
Bank-level security
The solution guarantees high reliability and integrity of data and supply chain cycle due to advanced security measures applied:
Encryption of all data and traffic
Limited access to confidential information (user-based access control)
Strict access control to the mobile app (operators use fingerprint, facial recognition, or ID to sign in)
User permissions can only be granted by a user with the authorized role (operator can only activate their account after the site manager grants their authorization, site manager initiates the creation of a new operator user, etc)
Physical verification of matching goods with their data in the blockchain by the operator (for comparison, similar solutions only provide formal tracking of deals on the document level)
Transparent management of shipments
In the Shipments section of the system, all supply chain members can track the status and check the details of each shipment:
- Type of gold bar;
- Name of the company;
- Status of delivery;
- Attached documents needed to verify the shipment: waybills, shipping documents, invoices, bar list, etc.
Through the systemās integration with a private blockchain network, each shipment receives its own unique hash so that the chain of custody for every shipment along with individual information for every gold bar can not be broken.
Blockchain Expertise
Private
blockchain network
blockchain network
Ethereum
platform
platform
Solidity
smart contracts
smart contracts
Technology Stack
Node JS
GO
Jenkins Git
Ethereum
Swift
AWS
React.js
Results
As a result of Unicsoftās collaboration, our client now operates a reliable tracking system that allows for a deeper level of control over the goldās origin including the entire chain of events, from the mine to the end customer.
From now on, the gold mining industry will leverage supply chain transparency via the tracking of each piece of gold electronically and consolidating data from different supply chain members in a highly secure manner.
Achieved business results
Improved visibility over the gold supply chain
Increased operational efficiency
24/7 secure tracking of each piece of gold
Decreased time spent on problem-solving
Optimized routine tasks and order processing
Reduced risk of fraud and smuggling
Ready to strengthen your supply chains?