Crypto Community in Canada

Canada Plans on Using Blockchain to Track Steel

The government of Canada has awarded Mavennet, an enterprise blockchain startup, a procurement contract for the development of an on-chain platform for steel-tracking.

A government agency with the mandate to foster technology innovation, Science and Economic Development Canada (ISED), published a procurement award on November 12, 2019 that will fund the R&D project for 6 months with US$130,000.

The goal set out by the ISED is for Mavennet for building a blockchain proof-of-concept prototype that can track as well as share real-time data across the supply chain in the Canadian steel industry, that continuously produces well over 10 million metric tons a year.

Patrick Mandic, the CEO of Mavennet, stated in an interview that with the use of blockchain for tracing live data points as well as AI for making those patterns meaningful, the system might needed ripples across the multi-billion-dollar industry.

He said –

“Ultimately, you’re collecting a lot of data with new levels of granularity. If you’re able to collect information in real time and in a way that you can trust, you’re opening up a world of possibilities for analysis and providing insights to the government.”

In case Phase 1 proves to be successful, the Mavennet might be able to get additional two-year government funding that would count CD$800,000 to continue building the system. It is dependably pursing similar government contracts across the world, incorporating an oil-tracking platform for the US Department of Homeland Security.

Hans Parmar, a media relations manager for ISED, said –

“The adoption of new digital technology into Canadian industry will help ensure our firms strengthen their competitive advantage.”

Concerns Associated with the Tariff

The steel industry of Canada is a primary international exporter, particularly to the US. However, that heavy reliance was rocked by the US President Donald Trump’s 2018 steel tariffs and the ensuing uncertainty of the market. In 2019, exports were down by 22%.

Mandic said that the tariffs offer a context for Canada’s search for a steel supply chain solution based on Blockchain Technology. He said –

“What the blockchain provides is the ability to have a specific set of records in specific points of time. You cannot go back in time and change the path.”

Even Parmar refuted the notion that the project was launched as a response to the Section 232 steel tariffs. However, in a a statement, he also explained that the platform might have blockchain benefits.

He said –

“The technology solution may facilitate trade and domestic policy adjustments, including aligning country of origin marking regimes, certification and labelling if implemented.”