Ukraine will use blockchain technology to track the supply chain of timber on international markets. It is thus the second country in the world, after China, to test this pilot initiative.
On November 19, Deputy Chairman of the State Forest Resources Agency Victor Smal announced on his Facebook page that Ukraine will join the Forest Stewardship Council (FSC) initiative aimed at tracking the movement of timber on the international market.
The supply chain will be tracked using specially developed software based on blockchain technology. All data on timber lots will be recorded and stored in decentralized international databases. This eliminates the risk of loss or misuse of information.
State-owned companies operating in the Zakarpattia region will be the first to test the system. Illegal logging is an ongoing problem in Ukraine, so the initiative also aims to track down those whose operations break the law. It will also help strengthen the position of Ukrainian timber on the international market.
It is not news that blockchain technology can be beneficial for supply chains in various industries. In fact, many companies and manufacturers have already used it to improve their quality. As CoinIdol, a world blockchain news outlet, has already reported, global giants like Tesla, BMW, IBM, etc. are exploring the potential of this innovation.
Currently, Italy is leading the way in integrating blockchain technology into supply chain management. So far, the technology has been transforming the country's agrifood and textile industries. Thanks to transparency and traceability, it offers great opportunities to ensure the quality of goods and protect consumers from counterfeiting.
If the current initiative is successful, Ukraine could use the technology in industries other than timber. Especially since the country is known for its friendly attitude towards blockchain and its general openness to digital innovation.
Back in 2020, the Ukrainian Ministry of Digital Transformation launched a TV series to educate citizens about digital technologies that have the potential to change their lives. In July 2021, Ukrainian MPs approached EU officials with a cooperation proposal aimed at building a single infrastructure for blockchain services. Perhaps joining the FSC initiative is a first step towards this goal.