Goldcorp Inc. Deposits $4 Million in Gold onto Tradewind's VaultChain Platform

Vancouver-based gold production company Goldcorp Inc. made a 3000 oz gold deposit (valued at $4 million) into Tradewind Markets’ VaultChain platform, in what symbolizes an important landmark for blockchain’s ability to store and track precious metals in an institutional setting.

The deposit forms VaultChain’s ‘genesis block’ - in other words, the first block on its Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term. Using VaultChain, Goldcorp will be able to sell gold directly to brokers and banks.

Blockchain could reduce the margin of error in gold settlements

Tradewind is hoping that its new platform will address what it sees as important problems in the precious metal industry in its current form. According to a Reuters report, Tradewind believes that trade settlement times are too long and ownership records aren’t transparent enough, all factors that lead to higher instances of error.

Goldcorp Deposits the First Gold on Tradewind Blockchain https://t.co/8us15H5cKO

— Goldcorp Inc (@Goldcorp_Inc) March 29, 2018

If all goes according to plan, the Tradewind platform will lower costs while increasing efficiency and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term. At the same time, blockchain’s immutable distributed ledger technology will allow for the creation of “forgery-proof” ownership records.

“We believe that our technology will enable gold producers like Goldcorp to overcome existing limitations and move into the electronic age,” said Matt Trudeau, President of Tradewind.

Showing similar sentiments, Goldcorp President and CEO David Garofalo said that his company “[believes] physical gold stored on a blockchain will increase the utility of the commodity and, ultimately, drive value in the price of gold.”

“We believe Tradewind has the potential to change the gold investment industry like the introduction of ETFs (Exchange Traded Funds) did over ten years ago,” he said.

Gold and Blockchain may have a bright future together

There have been a number of blockchain firms who have worked to create chains that interact with gold and other precious metals. Emergent Technology Holdings is planning to launch a blockchain-based gold supply chain in the first half of this year.

Emergent’s focus is slightly different. While liquidity and transparency are equally important to the platform, the company is hoping that its chain will help buyers acquire gold that has been responsibly sourced.

In an email to CNBC, Emergent’s Chief Commercial Officer Mitchell Davis said that “Emergent is looking to build an ecosystem.” The company tracks all the gold that it produces directly from its source mine, “[connecting all steps in the supply-chain.”

In a way, the emergence of an increasing number of digital currencies backed by hard assets is a sign that the market may be moving away from the volatile coins that its known for and toward assets that can be counted on long-term.