Asia Times | The blockchain can not fix slavery, but it could help



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It is highly likely that the device on which you are reading this contains cobalt, a metal essential for the production of batteries in phones and laptops. It is also likely that the cobalt of your device was extracted by slaves.

Nearly two-thirds of the cobalt extracted in the world comes from the Democratic Republic of Congo (DRC). This Central African country has a notorious reputation for its human rights violations, including forced labor.

It is virtually impossible to know if the cobalt of the DRC is free of slaves. The same goes for many other products and products around the world, from tuna to coffee.

Some companies see a solution in blockchain, the technology behind Bitcoin, to check global supply chains.

This is the latest promise of a technology already presented as a solution to unregulated prison economies, climate change and counterfeiting. Even if we can not put all our hopes in technology to solve complex social problems, maybe this time will be part of the solution.

Slavery of the supply chain

It is increasingly difficult to determine whether products are purchased and manufactured ethically as supply chains become more complex.

In the case of cobalt, the supply chain can include countless middlemen who buy and mix cobalt from countless mines. This means that it is almost impossible for a cobalt buyer such as a battery manufacturer to trace the origin of the metal.

The cobalt industry in the DRC encompbades a wide range of working conditions. Some miners are relatively well paid and work safely, but about one-fifth of all cobalt is dug up by about 110,000 to 150,000 workers in small "artisbad" mines. Those working in this unregulated sector often earn a fortune and struggle in dangerous conditions.

Working in such mines involves descending into small, hand-dug holes without basic safety precautions. Poor construction and poor ventilation resulted in injuries and deaths.

While sales of electric cars are boosting demand for cobalt, these conditions are deteriorating.

It is difficult to know exactly what proportion of the cobalt industry in the DRC uses forced labor. But a survey conducted in 2013 by the Washington-based organization, Free the Slaves, found that 866 of the 931 people surveyed in three mining communities were slaves.

The report identified seven types of slavery, including forced labor and bonded labor.

Nearly one in four slaves was under 18 years old. According to a 2014 UNICEF report, 40,000 children were working in mines in southern DRC, most of them digging cobalt.

The promise of Blockchain

This is not just cobalt. The same goes for everything from copper to cocoa. It's hard to know how the products are made or where they come from.

So, how can we ensure that supply chains are not corrupted by modern slavery?

It's here that companies are experimenting with blockchain technology. To understand their interest, let's recap the basics of this technology.

Think of blockchain as a great public book online. Once a transaction is made, a permanent and unalterable record of that transaction is created and must be validated by other people in the blockchain. These records are called "blocks" and are chained chronologically.

Blockchain technology can therefore be used to create a verified and tamper-proof record of supply chains from the source to the end user.

A recent study has revealed the links between tuna fishing and forced labor, but the World Wildlife Fund is currently working with technology partners and a tuna fishing company to use blockchain technology to track tuna fishing. 39, bait plate.

A consumer will be able to know when and where the tuna was caught by scanning a code on the package. The mining and resource giant, BHP, wants to use the same technology to check copper supplies.

The blockchain is also used to track cotton, fashion, coffee and products from organic farming.

Ford and IBM are part of a consortium looking to use this technology to monitor cobalt supplies. This would mean the ability to track the metal from the mine to the battery. Ethically extracted cobalt can be saved in the blockchain and tracked as it moves through the supply chain.

Challenges remain

Although the blockchain is promising, we have to face a number of challenges if we want it to work.

The "consensus protocol" is a crucial element of any blockchain. This determines who can validate a transaction, be it all participants, a majority, a restricted selection or a random selection. In a blockchain dedicated to ethical sourcing, it is essential that workers can attest to their working conditions. There is no guarantee that this will happen, especially for marginalized or oppressed workers.

Secondly, it is important to know which standard for the ethical supply of a blockchain is respected. There are several blockchain platforms, so different standards, potentially less robust, could easily be developed. This is a problem for other areas of ethical certification, where competing systems exist for products such as coffee.

Third, we should always question the connection between a "block" and its material reality. It would be extremely lucrative to find a way to insert goods made with slave labor into the blockchain. Since the integrity of blockchain data is human-dependent, they are vulnerable to inaccuracies or fraud.

Fourth, the blockchain can create a "digital divide". Large suppliers with technical experience will have less difficulty using this technology, while smaller suppliers may be left behind. We must ensure that the blockchain does not become a barrier for small suppliers entering the market.

No technological solution

As a transparency tool, the blockchain can – in theory – give an insight into where the goods come from. But no single technology can solve a complex social problem.

In the end, as with any other technology, the saying "garbage in, garbage out" applies. If human beings want to undermine accountability systems, they will find a way to do it.

Simply saving transactions is not enough. However, as part of a comprehensive program to tackle the myriad of factors underlying modern slavery, this tool could prove useful.

Martijn Boersma is a lecturer at the University of Technology Sydney. Justine Nolan is Associate Professor at the University of New South Wales Law School.

This story first appeared in The Conversation. You can see the original report here.

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