In Sichuan, a gold refinery has tokenized the first bar of this precious metal on BSN's blockchain technology, all in order to ensure the traceability of precious metals such as this.
During the Gold Technology Innovation Conference, which was held yesterday in Sichuan Province, China, a gold refinery He showed The first physical gold bar, weighing about 100 grams, tokenized using technology blockchain. The gold bar integrates a chip, which uses a unique algorithm that guarantees the security and integrity of the information, he said. Great Wall Precious Metals, the gold refinery responsible for issuing and presenting the prototype.
The digital infrastructure of the Blockchain Service Network (BSN) China will be the platform for the digitalization and circulation of physical gold bars on the blockchain. According to the technical staff of Great Wall Precious Metals, during the technological innovation conference, chips are attached to the top of each gold bar.
«We place a unique chip on each piece of gold. This chip uses a unique algorithm to prevent reverse writing and ensure the security of the information.»
Great Wall Precious Metals claims that thanks to technological innovation, which allows the design of these unique chips, the production and circulation of tokenized physical gold can be achieved on a blockchain network such as the BSN. This initiative responds to the aspirations of the Asian nation to legitimize the technological and blockchain industry before national and international regulators. In addition, it further consolidates China's position in the world, to become a leader of the technological and digital revolution of our era.
In the face of the demonstration, a senior executive of UnionPay He said that soon other metals and products will also be able to be digitalized and circulated without problems.
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Unparalleled traceability
The integration of a single chip makes it possible to guarantee the traceability of precious metals such as gold, which can then be easily tracked within a blockchain. In this regard, Zhang Yongtao, Vice President of the China Gold Association and special guest at the event, said that many countries in the world have very high standards and requirements for gold trading. Therefore, in order to achieve efficient and effective issuance and circulation of this product, and to ensure compliance with the highest quality standards, product tracking from its origin to its destination is indispensable.
Source: Sichuan.com
Yongtao says that thanks to technological innovation and blockchain, verifying the quality of a product such as gold and its circulation is an easy process to carry out today. Likewise, to guarantee the authenticity of the piece, the technical staff of Great Wall Precious Metals indicates that both the chip and the protective cover of the gold bar must be intact. If these pieces are damaged or torn, they cannot be restored and there will be no way to verify the legitimacy of the precious metal bar on the network. It is therefore a unique piece that must be kept in optimal condition.
Similarly, Wang Lixin, Director of the World Gold Council China, said that blockchain technology has the potential to prevent risks such as real weight tampering, gold bars with fake materials or recycled gold, and other types of fraud from occurring within the market. Lixin also said that blockchain technology is a blessing that can “ensure the security of physical gold transactions online.”
BSN, the digital infrastructure
BSN, the Blockchain Service Network, which will function as the internet of blockchains, integrating millions of decentralized applications (dApps) managed and interoperable, will be the basis for the issuance of gold bars on the blockchain. According to Great Wall Precious Metals, these will be issued as a corresponding digital asset, possibly as a non-fungible token (NFT).
The refinery also explained that the BSN will ensure that data on the origin, supply, issuance, purchase, and other operations carried out with the products are stored on the blockchain in a secure and reliable manner. The BSN's digital infrastructure makes it tamper-proof, thus guaranteeing the integrity of the data.
Finally, the chairman of the Chengdu Gold Industry Development Promotion Association, Yang Hong, pointed out that blockchain technology provides gold with a “unique digital identification card” that cannot be altered or tampered with. With this, the gold industry can solve its opacity problem from the root, leading to the true construction and consolidation of a favorable ecosystem for the development of this industry in Chengdu and the world.
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