Blockchain technology has been adopted by gold traders and is now demonstrating its potential to transform other sectors of the global physical commodity market.
While this innovation does not necessarily increase commodity prices, it can provide a safe way to trade raw materials, open up trading channels for buyers and sellers that are still considered credit risk, and provide more for markets that are gradually losing favor of financial institutions. More transparency and mobility.
This technology provides a way to audit financial transactions. It solves the vulnerability problem in the process of storing asset transaction data. Many people associate blockchains with bitcoin. This cryptocurrency has grown tremendously this year, with prices rising more than 17 times. Both CBOE and CME Group launched Bitcoin futures in December.
Although there are still people who compare the bitcoin trend to the 1636 tulip bubble, the mainstream adoption of this currency is beyond doubt. It's just that we don't know if this cryptocurrency will work more as a medium of exchange or as a value store. We don't know how long it lasts. After all, it has many competitors. According to Cryptocoins Charts, there are currently 4,453 cryptocurrencies with a total market capitalization of $567.7 billion. However, no matter how many cryptocurrencies can succeed or fail, the blockchain technology that supports these digital assets will continue to exist and make commodity trade safer.
The most liquid commodity – the gold trading market – has benefited from this new technology. From November 1st, people can already store physical gold as a digital asset in a digital wallet and send it to other wallets. Although gold has a variety of tradable products (spot, futures and options, ETP, index, physical), the blockchain has features not found in other products – all market participants (miners, smelters, wholesalers, finance) Institutions, investors, traders and retailers are brought together.
The Royal Mint and CME Group have jointly created the “Royal Mint Gold†blockchain, which represents the physical ownership of gold in the Royal Mint. Earlier this month, Euroclear and Paxos announced that a number of companies, including Societe Generale, Citibank and Scotiabank, completed the first pilot of the blockchain gold trading platform developed by Euroclear. Canada's GoldMoney also announced a blockchain product that provides customers with the ability to trade gold in cryptocurrencies.
Before the blockchain appears, the transaction is recorded in the accounting book and eventually exists as an entry in a spreadsheet or database stored in the computer system. This is risky because it is not always safe. Data may lose reference value or be tampered with or deleted. Distributed digital ledger solves this problem. Blocks do not store data on a server or database, but instead exist on multiple computers and networks. If there is a change in the chain, it will be reflected in every copy immediately.
The advantage is that the replication of distributed digital books provides a security mechanism. The cryptographic proof is permanently stored on the chain, eliminating any controversy over the sequence of events. The blockchain is validated and validated by the high visibility of each transaction, ensuring that the participants reach a consensus. There is no single central authority in the blockchain, and each participant in the chain is an administrator of the same identity.
The physical commodity market tends to be lagging behind in innovation and cutting-edge technology. That's because they are the least regulated. Commodities are able to circumvent more and more financial market regulatory scrutiny because their production, storage and transportation often involve many unregulated areas.
Commodity traders know that, in general, metal freight is not only from mines to smelters or from smelters to buyers; it may involve ships, trains, warehouses and factories. Moreover, even if the goods are on board for a month or stay in the factory for one year, their ownership may change several times. The same is true for oil or coffee.
Today, despite the efforts of the Trump administration to curb financial regulation, global financial markets are still struggling with an increasingly large regulatory framework. Commodity markets are no exception, as regulators aim to review parties and enhance transparency and stability. Quality standards for raw material supply chains are set higher, and regulators require shipments to be more transparent and more traceable.
Blockchain can help commodity traders break through traditional market barriers while ensuring timely settlement, accelerating the allocation of funds, and providing proof of collateral.
The gold market’s use of this technology has paved the way for increased transparency in physical goods. This is just the beginning of a broader adoption of book-based technology that will transform a variety of commodity sectors (including other precious metals and industrial metals, energy, and grain).
This article only represents the author's personal opinion, does not represent the position of the blockchain pencil, does not constitute investment advice, the content is for reference only.
Corona Resistance Enameled Round Copper Wire
About Corona Resistance Enameled Round Copper Wire. |
Capable of working under extreme situations where strong resistibility against very high and low temperature, powerful cryogn,hard radiation and forceful heat shock are needed.
Be suitable for refrigerator compressor and aire condition compressor, microwave oven electric instrument and other pressuring motor.
Products Feature. |
Name |
Corona Resistance Enameled Round Copper Wire |
Conductor |
Copper |
Dimension(mm) |
Diameter: 0.20 ~ 2.50 |
Thermal Class(℃) |
200(Class C); |
Standard |
J B / T 10930-2010 |
Packing |
PT 4 – PT 200 or ply-wood spool |
Application |
Variable frequency motor, speed regulating motor, lifting motor, elevator motor and other fields. |
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