Blockchain is perhaps best known for cryptocurrency but there are a great number of applications of the raw technology. It is used to create a refutable ledger of various types of information and as such, has found a lot of use in industries that rely on supply chain and logistics. This includes the tracking of food, the issuing of degree certificates from various institutions around the world and the tracking of various raw materials around the globe. Blockchain has also found use within the fashion industry for verification of authenticity or simply the tracking of goods.
Now, Convergence.tech, a Canadian-based blockchain firm, has developed a new blockchain-based app that will help Mongolian cashmere farmers manage the sustainability of their product.
A Sustainable Future
This new product was developed in conjunction with the United Nations Development Program (UNDP) and is based on Backbone, which is the company’s Ethereum-based blockchain. For this pilot, cashmere farmers were chosen as they often face economic instability, as well as harsh working conditions and this, also ties into the fashion industry which tends to have an unreliable supply chain system which means that customers cannot verify whether the products they are buying were ethically sourced or not.
“The nomadic community is one of immense pride but one with a volatile and unstable income. Leveraging blockchain technology within the transformation of the cashmere industry can provide numerous benefits for Mongolian herders, buyers, and sellers alike,” said Convergence.tech CEO, Chami Akmeemana.
This new development works via a mobile app for android devices. This app allows the farmers to register their cashmere bales and a tracking device is put in the bales that help to monitor its movement and break down its lifecycle. On top of this, customers will be able to see where the cashmere is coming from as well as its economic impact across its lifespan.
“Our learnings are pretty significant on this, and that’s why everything was around watching from afar. But now that that’s completed, we’ve been going around the world. We were in Singapore and Bangkok a couple of weeks ago presenting to the UN, USAID (the United States Agency for International Development), the World Bank, et cetera. So now we’re going to start seeing a lot more applications coming out,” said their CEO, stating that the company is looking into expansion into other regions.