Emerging ASX-listed tech play Security Matters (ASX:SMX) has further solidified its entrance into the mining industry with a $710,000 partnership with key participant Trifecta Industries.
It told its investors today that Canada-based Trifecta would put up US$500,000 ($AU710,000) over 10 months to develop a ‘track and trace’ product aimed at the diamond industry, with an eye towards using the product in the middle of 2020.
Security Matters referred to the partnership in its prospectus, a sign that the company is following through on its stated roadmap.
While the deal with Trifecta is firmly within the diamond industry, Security Matters has been making moves in the mining space more broadly.
CEO Haggai Alon previously talked to Star Investing about the potential of the space and earlier this month filed a patent in the US for the development of its tech in the mining space.
The Trifecta deal will see the Canadian company and Security Matters form a new company to commercialise the tech within the diamond sector, with the former already entrenched in the industry.
“SMX’s technology has enormous commercial application within the industry and has the potential to increase traceability and transparency throughout the entire supply chain,” Trifecta said in a statement.
“In addition to providing protection against fraud and theft, it has the potential to provide a clear traceable path for each diamond from mine to consumer.”
Transparency within the mineral sector is a hot topic at the moment, with increasing awareness around fraud and unethical practices leading to calls for more transparency.
However, it’s only been in recent years that technology has caught up to provide a solution at scale.
Security Matters provides a ‘track and trace’ solution by adding a chemical barcode to physical objects, which doesn’t alter the physical state of the object being tracked.
It is then able to detect the chemical barcode using a unique reader made by Security Matters.
It can then verify each transaction on a blockchain-backed ledger — giving it visibility over the whole process.
While companies such as DeBeers have had a blockchain solution in place, it is only available to some customers and is costly to implement. It also doesn’t track physical objects, merely verifies transactions to ensure authenticity.
It’s why Security Matters’ technology could change the game for the sector, as it provides full visibility at a reasonable price point.
“This agreement is a fantastic step towards commercialising of our technology for diamonds” Security Matters CEO Haggai Alon said.
However, the company isn’t just betting on the diamond industry.
Security Matters’ ‘digital twin’ mission
It was just one of a slew of proof-of-concept deals Security Matters has struck in recent times, with the company aiming to provide a solution for industries as varied as:
It’s signed the deals as it’s attempting to prove up its concept of a ‘digital twin’ for all physical objects.
By applying a chemical barcode to any object without altering its physical properties, it’s hoping to create a vast database of objects.
From there it can trace each object as it makes its way around the world — providing a track and trace solution to anybody who wants it.
This content is produced by Star Investing in commercial partnership with Security Matters. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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