RMIT University, Melbourne, Australia, e-mail: julianadamwise@gmail.com"/> RMIT University, Melbourne, Australia, e-mail: mengchak@gmail.com"/> Mining3, Brisbane, Australia, e-mail: dtadic@mining3.com"/> RMIT University, Melbourne, Australia, e-mail: s.e.miles2@gmail.com"/> RMIT University, Melbourne, Australia, e-mail: j.a.cornish42@gmail.com"/> Mining3, Brisbane, Australia, e-mail: esellers@mining3.com"/> RMIT University. Melbourne, Australia, e-mail: dbrenecki@gmail.com"/> Mining3, Brisbane, Australia, e-mail: idzakpata@mining3.com"/> RMIT University, Melbourne, Australia, e-mail: barti.murugesan@rmit.edu.au"/>
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2020 Volume 35
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RESEARCH ARTICLE   Open Access    

Legal smart contracts for derivative trading in mining

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  • Abstract: This research demonstrates financial derivative trade of unprocessed materials, for the mining industry through legal smart contracts. Within the mining supply chain, a stock of mined resources can reside in a mineral stockpile for over twenty years without gaining financial interest and without undergoing the mineral extraction process to derive value from the asset. This research elaborates on a blockchain solution implemented to increase miners’ short-term cash flow for business operations through the issuance of derivative assets on mineral stockpiles which can be traded through legally binding smart contracts. The system is the first to enable mining companies’ access to the underlying asset’s value earlier in the production lifecycle through smart contract technology whilst providing hedge funds with access to new financial products for investment portfolios.
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  • Cite this article

    Julian Adam Wise, Meng Chak Chan, Dihon Tadic, Stephanie Miles, Jack Cornish, Ewan Sellers, David Brenecki, Isaac Dzakpata, Barti Murugesan. 2020. Legal smart contracts for derivative trading in mining. The Knowledge Engineering Review 35(1), doi: 10.1017/S0269888920000144
    Julian Adam Wise, Meng Chak Chan, Dihon Tadic, Stephanie Miles, Jack Cornish, Ewan Sellers, David Brenecki, Isaac Dzakpata, Barti Murugesan. 2020. Legal smart contracts for derivative trading in mining. The Knowledge Engineering Review 35(1), doi: 10.1017/S0269888920000144
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RESEARCH ARTICLE   Open Access    

Legal smart contracts for derivative trading in mining

  • Received: 14 June 2019
  • Revised: 09 February 2020
  • Accepted: 10 February 2020
  • Published online: 19 March 2020
The Knowledge Engineering Review  35,  2020, 35(1)  |  Cite this article

Abstract: Abstract: This research demonstrates financial derivative trade of unprocessed materials, for the mining industry through legal smart contracts. Within the mining supply chain, a stock of mined resources can reside in a mineral stockpile for over twenty years without gaining financial interest and without undergoing the mineral extraction process to derive value from the asset. This research elaborates on a blockchain solution implemented to increase miners’ short-term cash flow for business operations through the issuance of derivative assets on mineral stockpiles which can be traded through legally binding smart contracts. The system is the first to enable mining companies’ access to the underlying asset’s value earlier in the production lifecycle through smart contract technology whilst providing hedge funds with access to new financial products for investment portfolios.

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    Julian Adam Wise, Meng Chak Chan, Dihon Tadic, Stephanie Miles, Jack Cornish, Ewan Sellers, David Brenecki, Isaac Dzakpata, Barti Murugesan. 2020. Legal smart contracts for derivative trading in mining. The Knowledge Engineering Review 35(1), doi: 10.1017/S0269888920000144
    Julian Adam Wise, Meng Chak Chan, Dihon Tadic, Stephanie Miles, Jack Cornish, Ewan Sellers, David Brenecki, Isaac Dzakpata, Barti Murugesan. 2020. Legal smart contracts for derivative trading in mining. The Knowledge Engineering Review 35(1), doi: 10.1017/S0269888920000144
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