For centuries countries have backed their wealth, currency, and value with precious metals like gold and silver. This lucrative industry is currently valued at $680 dollars, making it an enormously appealing market for all sorts of businesses looking to get in on a piece of the pie.However, the metals mining industry, for all its financial success, is still one fraught with issues surrounding fraud, corruption, child labor, environmental challenges, and stringent regulatory compliance. These issues not only affect those directly involved in the industry itself but all types of communities and businesses around the world. With headlines like "Precious metal frauds push up VAT gap by 25%" appearing ever more frequently in the media, it's evident that these problems are not going away by themselves.
Some may find it surprising that an industry that has been in existence for such a long time can still face such fraudulent activity. A large portion of the challenges faced by the mining industry, particularly from regulators, is the number of processes and borders crossed along the supply chain from mine to market. Without having sufficient technology to efficiently, responsibly, transparently, and securely track the necessary data, the metals can, in some cases, move somewhat under the radar.
To solve this problem, Richard Verkley founded Karuschain, an enterprise blockchain solution designed to bring a complete end to an end tracking and tracing solution to the precious metals industry.
Richard Verkley recently made headlines for teaming up with "The Bitcoin Man", Herbert Sim, who has become both an investor and advocate for Karuschain.
Recently, Neha Soni (ex IBMer turned entrepreneur) from Corum8 has interviewed Richard Verkely, CEO of Karuschain and The Bitcoin Man, aka Herbert Sim. In the interview, Richard spoke about the fraud-fighting technology behind the company's latest MVP, stating, "Karuschain SecureCapture will function as the secure data flow to the Karuschain platform. By integrating Karuschain SecureCapture into the mine operation tech ecosystem, Karuschain technology will capture data across selected databases and provide data immutability. Data immutability will ensure that even system administrators will not be able to change data retrospectively in order to commit data fraud. It will act as the first step to securing provenance and solving the long-standing issues around efficiency, data integrity, transparency, information sharing, and traceability for miners and others throughout the precious metals supply chain." Neha asked Herbert, aka The Bitcoin Man, what triggered your decision to become an investor in Karuschain?
Herbert replied, "Karuschain's blockchain project is unlike the thousands of others in the industry I have seen thus far. The project brings together a complete supply chain solution for the precious metals mining industry utilizing blockchain technology. Moreover, I see the serviceable market size which this project is about to tap into, and it's a whopping 21.6 billion dollars. As early player in blockchain SCM tech if we are able to get in early and provide a customizable solution for this industry we stand a very good chance of making excellent ROI .
Even if we tap into 10% of the serviceable market, the enormity and stability of it as an industry creates the potential for it to be a highly valuable space for investors like myself."
Neha then asked Richard, what are you doing at Karuschain that's are different from all the other projects in the market?
Richard replied, "As a single source of truth from mine to market, Karuschain tackles the entire supply chain while meeting the global mining industry at the place of one of its most significant pain points – compliance. Compliance is a multi-billion-dollar global expense for miners, and the social and government pressures facing the industry for ethically mined minerals doesn't look to be going away. Unlike other projects, Karuschain's KRS token value & network economy depends on the exchange volume of ethically sourced minerals and the related compliance burden, rather than on the amount of the minerals themselves.
Another way we're doing things differently is that our blockchain solution is designed to be fully customizable and readily available to plug into existing mining software systems. Karuschain is currently inviting different stakeholders in the mining industry's supply chain to join the platform and to create a sustainable, stable, long-term and widely distributed ecosystem. This is the only way to tackle an industry of this size."
Karuschain is partnered with the world's largest ERP mining software company, MineRP. As one of the key ecosystem partners, the teams have been working closely together and have now established proof of technology, a key milestone in Karuschain's development. Prior to this, Karuschain signed a landmark mining consulting agreement with Jim Porter Mining Consulting Pty LTD - JPMC International South Africa.
What is Karuschain?
Karuschain is a blockchain technology platform for the precious metals mining industry, giving mining companies a powerful tool to ensure data integrity, safeguard human rights, reduce risks, and improve environmental regulations in their supply chain.
The germination for the idea for Karuschain was planted in 2008 during the global recession when founder Richard Verkley observed that many investors who bought into unallocated metals or paper metals experienced huge losses. Speaking on the matter, Richard said, "Gold, silver bars and coins unbeknownst to investors had been hypothecated, traded or lent and therefore those who thought they were a sole owner discovered their investments were held by multiple owners leading to a painful loss. "
The identification of this key pain point within the precious metals industry lead the team behind Karuschain to look at all the points in the supply chain where the source or ownership of precious metals must be tracked and develop its SCM blockchain solution to solve pressing investor, environmental, and industry compliance issues.
With over 270 years of combined experience in the global precious metals industries spread-out throughout the team, Karuschain's foundation is deeply grounded in the needs of the industry. From mining expertise to blockchain development to legal and crypto advisors, they seem to have it covered. The team has already successfully developed and implemented blockchain technology for tier 1 Swiss banks.With an end to end solution like this in place, mining and all of those affected by its fraudulent behavior will be a thing of the past and a far more secure, efficient, and quite possibly for Karuschain, profitable future lies ahead. Disclaimer: The views, suggestions and opinions expressed here are the sole responsibility of the experts. No Forbes India journalist was involved in the writing and production of this article.