https://preferredbynature.org/newsroom/fsc-blockchain-across-board-five-years
https://www.ledgerinsights.com/two-blockchain-solutions-target-timber-supply-chain-sustainability/
https://diia.data.gov.ua/value/forest
Блокчейн здатний мінімізувати похибки, допущені людьми, які вносили інформацію в рамках системи FSC без запиту утримувачів сертифікатів на розміщення конфіденційної ділової інформації на централізованих серверах або загальнодоступних технологічних платформах.
Використання цієї технології забезпечить передавання конфіденційної ділової інформації і дозволить гарантувати користувачам доступність даних, які адресовані лише для них. Крім того, підвищиться рівень цілісності системи FSC.
World Forest ID – важливий інструмент, який FSC використовує для підтвердження походження деревини в ланцюгах постачання.
Ця технологія дозволяє ідентифікувати деревину, використовуючи лише зразок волокна за породою та місцем заготівлі. Тепер можна перевірити походження деревини та впевнитися, що вона не заготовлена, наприклад, у пралісах.
Problem
The timber industry has tolerated the illegal trade of logs from unregistered logging operations. This has impacted severely on the long-term sustainability of forests and contributed heavily to the destruction of habitats.
- forest-related supply chains, like many global supply chains, rely on paper documentation, including a paper trail of invoices, bills of lading, and other “wet” signature/stamp trade paperwork. Paper systems open the potential for fraudulent claims, because bad actors can tamper with or falsify documentation.
- supply chain investigations allow to investigate, uncover, and address fraudulent activities carried out by certified organizations, but this has two major downfalls: 1) it only allows to investigate events that occurred in the past, once the damage has already been done; 2) it only allows to investigate with a very narrow and fixed scope on a particular supply chain.
Solution
Information Technology tools can help overcome the obstacles of inefficiency and not having timely verified information while protecting the privacy of business relationships:
- help users manage the critical supply chain data needed for regulatory compliance,
- cater for enhanced materials accounting and mass balance calculations,
- deliver advanced analytics,
- all through a platform where all data is encrypted at the point of entry to maintain business confidentiality.
Product/Market fit
- expect to have a working prototype developed by the end of 2023
- plan to make the FSC’s platform available to general users from 2024 onwards
- the State Forestry Agency of Ukraine is considering the possibility of creating an improved second-generation EOD, which should improve the transparency of the timber control mechanism and allow for a full transition to modern IT technologies and tools. The implementation of the new generation of EOD should use blockchain technology to track the chain of origin of wood from the moment of logging to further sales by market participants, and subsequently to export of wood
worldwide solutions:
FSC platform (mentioned above) https://connect.fsc.org/innovation-sustainability/blockchain
Timber Chain by Preferred by Nature and iov42 https://timberchain.iov42.com/
Benefits
Blockchain can fundamentally change how compliance and traceability of timber materials across supply chains are verified using secure technology:
- breaking free of paper-based documentation, and the exclusive reliance on that documentation, to determine whether materials are compliant.
- helps overcome IT limitations related to delivering a full package of immutability, information security, and consensus when the participating parties may be unknown to each other
- a certified organization of course knows their direct suppliers, but generally doesn’t have knowledge of their suppliers’ suppliers
- certified organizations verify that the materials they trade are compliant and traceable to the source
- allows trading partners to be connected to all parties handling materials down to the source
- allows to verify the compliance of the materials as they move through the supply chain, without the need to reveal or even identify business relationships beyond those direct relationships an organization already has today
Costs
in 2018 Spain received €93,530 subsidy (80% is from EAFRD (European Agricultural Fund for Rural Development) for the design stage and will need additional funding for execution https://www.ledgerinsights.com/spain-plans-blockchain-wood-traceability/
Feasibility
In 2021, FSC developed and piloted its first cloud-based blockchain platform. The pilot involved ten participating companies and focused on two relatively simple, “short” supply chains in Ukraine and China.
This pilot concluded in early 2022. Based on feedback received from participants, FSC is currently developing its Next Generation Blockchain
