Article published on April 1, 2019 on StoryBitcoin.com
Recently, a report emerged that revealed that the automobile giant Ford was partnering with IBM and other tech-based businesses to put a stop to the funds being siphoned off to conflict areas where raw material has been gathered through child labor. The reports mention the Dominican Republic of Congo, but the DRC is not the only conflict area that can be affected by this.
Conflict Places and their Roles in Manufacturing
In this specific case, a major raw material for Ford’s lithium-ion batteries is cobalt. Among the biggest developers of cobalt in the world is that the DRC, where child labor is used to mine coal. The DRC is a conflict zone and also a significant lump of this case it gets out of its cobalt sales are siphoned off to war funds that only serve to expand the conflict and enlarge it. This is the reason why dealing with these regions is such a major problem.
Businesses that use the cobalt and other similar metals can almost never tell the source of the raw materials. Most metals are often blended with others — or smelted together — before they’re sent off to a factory. If the blockchain were employed from the manufacturing process, it would be possible to know the history of each metal.
The way the Blockchain Can Help
Rather than dealing with paperwork which may easily be forged and made to represent something that’s not true, the blockchain is an open digital ledger that everyone can view. The transfer of data taking place on the blockchain permits anybody to see what’s going on and monitor the origin of that specific dealing from its location in the blockchain. This means that anything goes on may be monitored.
With the monitoring of trades and the flow of cash available at any moment, with no risk of forgery, companies can now monitor exactly where the raw materials they purchase come from and will ensure that the resources of these metals come from non-conflict places. Moreover, in Ford’s case, using AI along with other chemical tests will help find out how much of a smelted raw material comes from conflict areas and just how much of it’s “great”.
The usage of this blockchain in this manner points out to its nature. The blockchain isn’t under the management of any group or any individual. Instead, it’s a decentralized entity that can be utilized by everyone to store their personal information and make their transactions happen. This decentralization factor has played to the invention of community-based cryptocurrencies since Liracointhat govern themselves, and soon the concept is going to be utilized and explored by mainstream companies…..