Blockchain Company Minespider and automobile manufacturer Volkswagen have announced a partnership bid to improve battery supply chain with blockchain technology. A press statement signed by Ella Cullen, Chief Marketing Officer at Minespider indicated that supply chain transparency, sustainability and regulatory compliance would be the top priorities of the partnership.
It is apparent Volkswagen comprehends the value Blockchain technology brings to the auto industry. Marco Philippi, Head of Strategy for Volkswagen Group Procurement, asserted:
“Sustainability in the supply chain is one of our top priorities. We see blockchain technology as part of the solution to ensure compliance with environmental and social standards along the entire supply chain.”
Nathan Williams, the founder of Minespider, stated that the ultimate goal is the transformation of the whole industry with a public protocol which any responsible supplier can participate.
The collaboration which is commencing this month (April) will first take off with a pilot working with suppliers and sub-suppliers who account for more than two-thirds of the Volkwagen’s total lead starter battery requirements.
According to the release, the car maker’s ultimate purpose is to ensure that all the raw materials are coming from a socially and environmentally sound source.
Like other industries, the Automobile sector hasn’t escaped the murky nature of the supply chain alongside accountable procurement. Both companies are therefore leveraging Blockckchain technology to make the procurement process more secure and transparent.
With the Blockchain’s ability to trace the supply chain from the point of origin to the factory, the partnership is in the right direction. There is no single point of failure when Distributed Ledger Technologies are in place in such a process, and transparency is assured.
Background of Minespider
Minespider believes it is time for responsible products. Therefore, using the Blockchain, they have created tools that combat corruption, human rights abuses, and environmental devastation in the raw material supply chain industry.
With a public and decentralised protocol, It is set up to reconstruct the whole raw materials industry, so that illegal practices and dirty money become a thing of the past. By using the public protocol procedure, Minespider has created a paradigm shift from previous supply chain tracking initiatives that employed private, permissioned blockchains.
Minespider believes using public Blockchains prevents the peril of significant players with a private Blockchains monopolising the global mineral supply chain. The release further stated that the Minespider’s protocol uses nested encryption to ensure a company’s data remains private on a public blockchain.