Strategic Intelligence: Blockchain in Mining (2024)

Strategic Intelligence: Blockchain in Mining (2024)

Summary

Blockchain is a method of storing information that makes it difficult to alter the information or cheat the system. The technology can be viewed as a digital record of transactions-like a ledger-that is decentralized, meaning no central authority, such as government or bank, validates a transaction. Instead, transactions are shared or distributed among all participants on a peer-to-peer (P2P) basis within the network. The technology suits applications where data must be shared, and data integrity and traceability are paramount. Supply chain management is the main use case of blockchain in mining.

Blockchain is a small but fast-growing industry

According to GlobalData forecasts, the global blockchain software and services market will grow from $12 billion in 2023 to $291 billion in 2030, expanding at a compound annual growth rate (CAGR) of 55%.

Blockchain is a method of storing information that makes it difficult to alter the information or cheat the system. The technology can be viewed as a digital record of transactions-like a ledger-that is decentralized, meaning no central authority, such as government or bank, validates a transaction. Instead, transactions are shared or distributed among all participants on a peer-to-peer (P2P) basis within the network. The technology suits applications where data must be shared, and data integrity and traceability are paramount. Blockchain applications are limited in mining but include supply chain management and tracking Scope 3 emissions.

Supply chain management is the main use case in mining

The mining industry’s supply chain is complex, and implementing blockchain-based platforms can enable the tracing of materials. With blockchain, mining companies can maintain digital records of the entire mineral value chain. Every attribute can be captured, and documents can be updated when the process demands an upgrade. Mining companies can enhance their visibility and engender trust within the market, while sellers can share their digital register details. However, robust IT infrastructure and a high degree of digitalization are prerequisites to adopting blockchain. Small mining operations that rely on paper-based documentation will struggle to adopt blockchain.

Blockchain is not always appropriate

The capabilities and drawbacks of blockchain are not widely understood. A poll conducted by GlobalData in 2024 revealed that just 24% of respondents fully understood the technology. Lack of understanding, coupled with the hype surrounding blockchain, can lead to misaligned expectations, resulting in blockchain adoption being driven by novelty without consideration for its appropriateness. Mining companies must remember that blockchain is not always the optimal solution. Implementing blockchain can be complex, whereas a traditional database offers efficiency and simplicity and will suffice for many use cases.

To mitigate the risks of adopting blockchain, mining companies should use blockchain as a service (BaaS) to avoid the high upfront costs of developing blockchain solutions in-house.

Scope

• The “Blockchain in Mining” thematic intelligence report gives you an in-depth insight into the impact of blockchain in mining, including key players, challenges, and market size and growth forecasts.
• The report elucidates the growing importance of blockchain in the mining sector along with the progress made by the leading mining companies to adopt blockchain. These detailed analyses are critical in developing effective business plans to gain a competitive edge.

Reasons to Buy

This report -

• Discusses the challenges the mining industry faces and how blockchain can be used to help address them.
• Evaluates the impact of blockchain in the mining sector, including various use cases and case studies.
• Benchmarks leading blockchain vendors, and leading mining companies based on their adoption of blockchain.