Just as the name describes, blockchain is a decentralized digital ledger made up of individual pieces of data, called "blocks," permanently attached to other blocks to make up an immutable chain of information stored across a vast array of computers. Appropriately, the very first block in a blockchain is called the "genesis block."
History was made today with mining behemoth Goldcorp (TSX:G)(NYSE:GG) making a 3,000-ounce gold deposit valued at $4 million U.S. on the VaultChain blockchain of Tradewind Markets, representing the genesis block. Fittingly, the world’s biggest miner sourced the gold from its world famous Red Lake Gold Mines complex in Ontario.
Tradewind, a "DisruptMining" finalist in 2017, built VaultChain for the purpose of using blockchain technology for recording and managing physical precious metals in an institutional setting. Through the platform, Goldcorp can now sell gold directly to dealers and banks, ringing-in a new age of the market’s ecosystem and a more efficient, electronic pricing and liquidity venue.
"We believe physical gold stored on a blockchain will increase the utility of the commodity and, ultimately, drive value in the price of gold,” said Goldcorp president and chief executive David Garofalo.
Matt Trudeau, President and co-founder of Tradewind, added, "We believe that our technology will enable gold producers like Goldcorp to overcome existing limitations and move into the electronic age."
Goldcorp is an investor in Tradewind and will continue to work with the tech firm on expanding VaultChain to add value to all involved in the metal industry.
As of about noon in Toronto, shares of Goldcorp are up three cents at $17.51.
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