Announcement: Digital Asset Identification Certificate to strengthen authentication and credentials in livestock and meat supply chains

The BeefLedger Decentralised Asset Identification Certificate (DAI-Cert) functionality has recently been implemented on the BeefLedger Proof of Authority blockchain network.

The DAI-Cert is based on the Ethereum ERC721 non-fungible token protocol enabling the minting and tracking of unique digital assets on the decentralised ledger. A non-fungible token is unique; no two tokens are alike.

We are using non-fungible tokens as key features in our asset tracking + DeFi ecosystem.

The BeefLedger DAI-Cert can be minted when new livestock or meat product assets are created and registered to the POA network.

In practice, this means that every animal with a unique National Livestock Inventory System (NLIS) identity number (the Australian system), or any other unique identification tag, can be tracked with a unique and transferable digital token that is directly linked cryptographically to the animal identity.

The same can be done when individual products (eg., boxes of beef, or even individually packed portions) are registered to our blockchain ledger.

Digitalised Authenticity

“We describe this as an Asset Identification Certificate, as it functions just like an old fashioned certificate of authenticity and ownership. As the physical asset moves through the supply chain and is tracked through events into our ledger, we can also facilitate the transfer of ownership of the asset by the exchange of the DAI-Cert.

Charles Turner-Morris explains that the DAI-Cert is a powerful anti-theft and anti-counterfeiting tool, together with asset management transparency benefits.

“The DAI-Cert goes a long way towards resolving many supply chain challenges including grey-channel or unofficial sales, theft and substitution. If someone tries to sell livestock or boxed beef without the DAI-Cert, the potential buyer will be alerted to the fact that the counter-party does not have in their possession proof of ownership.

“Put plainly, without the right DAI-Cert in the cryptographically secured wallet, there’s every possibility that the person is either not dealing in genuine goods or does not have authority to trade in the goods in question.

“Once an Asset is consumed for good the DAI-Cert is redeemed for a reward in recognition of the authentication service performed by the redeemer. A one-way smart contract does the job, and the DAI-Cert remains searchable together with its transfer history.

Transparency and Liquidity for Investors

“The DAI-Cert also provide transparency to asset owners, such as investors, wanting to maintain visibility on asset transfers and management in situations such as managed investment schemes (MIS). Here, the DAI-Cert provides the means by which investors in an MIS can verify for themselves what assets are being purchased and sold, and determine for themselves the market value of the investment assets at any moment in time,” explained BeefLedger director Charles Turner-Morris.

According to Mr Turner-Morris – who has also over the last 10 years issued almost 200 managed investment scheme funds under an Australian Financial Services License, with funds raised in the value of AU$80m – this innovation is a “small step forward for BeefLedger but a big step forward for the Australian investor community.”

“Anything that can introduce greater transparency and liquidity for the investor is a step in the right direction. The digitalisation of assets can add great value to beef supply chain financing, as it opens the way for participation by many who had previously been unable to access this asset class,” Mr Turner-Morris said.

Project Fiducia

The development of the DAI-Cert is part of the broader deployment of tokens to enable the responsible development of financial, risk mitigation and capital solutions for the beef supply chain. This is what we call Project Fiducia.

More information about Project Fiducia will be released in the future.