Canadian authorities have approved funding of two blockchain firms, Peer Ledger and Mavennet, to create a platform that enables steel traceability, reported Ledger Insights on March 9.

The Innovation, Science, and Financial Development Canada (ISED), a government initiative in charge of promoting the research and development of Canadian small and medium-sized enterprises, adopted the measure, granting both companies CAD $150,000.

Strengthening digital traceability on the steel supply chain

Peer Ledger (Halifax-based) and Mavennet (Toronto-based) will be working on a proof-of-concept (PoC) prototype for digital traceability of the entire steel supply chain process by using blockchain technology and artificial intelligence.

According to Statista, Canada produced more than 13.4 million metric tons of steel in 2018 alone. The proposed blockchain platform, according to the ISED, would be in charge of controlling and sharing in real-time the information of the chain availability within the national metal industry.

According to a study conducted by ISED in 2018, the creation of a mechanism that allows steel traceability can cover the need for the industry to produce in a sustainable and environmentally friendly way.

An opportunity for blockchain technology in the steel industry

The Canadian government entity detailed their opinions in a study regarding the application of the blockchain in the field:

“An opportunity exists for the Canadian steel industry to implement a new, cutting-edge approach to the sourcing of steel and inputs, and therefore establishing ‘responsible steel’. This goal could be achieved through a rigorous industry-wide tracing mechanism within the supply chain, and through increased transparency.”

Peer Ledger is known for developing a blockchain-based MIMOSI SaaS platform for responsible sourcing, generally focused on tracking metal production, including gold.

In the case of Mavennet, this announcement came that the U.S. Department of Homeland Security (DHS) awarded $182,700 to integrate a blockchain system into cross-border oil imports between the U.S. and Canada.

Cointelegraph reached out to Mavennet and Peer Ledger for additional details but received no response as of press time. This article will be updated accordingly should a response come in.