Timber Tracking: Reducing Complexity of Due Diligence by Using Blockchain Technology

Abstract

Managing and verifying forest products in a value chain is often reliant on easily manipulated document or digital tracking methods – Chain of Custody Systems. We aim to create a new means of tracking timber by developing a tamper proof digital system based on Blockchain technology. Blockchain will be combined with new digital protocols for physical verification and authentication. Deliverables include online traceability system, and procedures for entering and verifying data inputs. Certification schemes and governments gain increased legitimacy from tamper-proof means to comply with timber trade requirements. Global companies gain from efficient traceability; society at large benefits from increased tax revenues, anti-corruption, and environmental benefits from sustainable forestry. We think this potential collaboration between government and industry can help simplify a variety of current due diligence processes, in this paper we focus on timber tracking.

Keywords: Blockchain, Timer Tracking, Distributed Ledger Technology