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Shailesh Panwar
Jan 21, 2020
by Shailesh Panwar

Canada Forms Development Deal For Steel-Tracking Blockchain

Canada
Recently, the government of Canada has awarded a procurement contract to Mavennet, a blockchain-based startup for development of the steel-tracking platform. On November 12, Innovation, Science and Economic Development Canada (ISED), a Canadian government agency, published a procurement award that would finance the research and development project for six months with 169,427 Canadian dollars. According to ISED, Mavennet would create a  proof-of-concept based blockchain model that could share and monitor real-time data across the Canadian steel industry's supply chain that produces typically well about 10 million metric tons a year. Canada has been promoting blockchain technology. Earlier, Walmart Canada tied up with DLT Labs to start freight blockchain solution.

Mandic's Statement On The Deal

In an interview, Patrick Mandic, CEO of Mavennet, stated with a blockchain to track AI and live data points to make meaningful patterns, the system could have passed through the multi-billion-dollar industry. Mandic cited if lots of data is gathered with new granularity or on a real-time basis that could be trusted; new opportunities could be opened for the government. The media relations manager to ISED, Hans Parmar stated the new digital technology adoption into the Canadian industry would guarantee their firm sharpen their competitive advantage.

Tax concerns

The steel industry of Canada is a significant international exporter, primarily to the U.S.A. But the 2018 steel tariffs by President Trump rocked this heavy reliance, and this resulted in market uncertainty. Last year, exports were dropped by 22 per cent. Mandic told the tariffs presented a context to Canada's quest for a blockchain-based solution for the steel supply chain. He also cited that Trump's decision was driven in part by worries of tariff dodgers, which directed their exports in untaxed markets. According to Mandic, the immutability of blockchain could support claims of product origin. 

ISED's Parmar opposed the view that the project was started in response to section 232 steel tariffs. In another statement, he explained the platform could benefit from blockchain technology. Parmar stated the blockchain solution might help trade and adjustments of domestic policy, including joining the nation of origin marking regimes, certification and labelling if accomplished.

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Canada Forms Development Deal For Steel-Tracking Blockchain
Shailesh Panwar
Shailesh is an ardent follower of the crypto world and keenly watches every development taking place in the cryptocurrency space. He loves to voice his opinions through well-curated blogs and articles, which throw light on different facets of the crypto industry.

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