Coca-Cola, the U.S. State Department and two other companies announced on Friday they have an upcoming project in which they will combat the use of forced labor internationally by developing a blockchain-based transparent registry for workers, reported Reuters.
Using a blockchain-based technology is the first initiative of its kind by a U.S. State Department, as they mentioned.
The blockchain technology is much more secure than a lot of the current industries’ system. It can also help many of them like social and humanitarian aid.
For example, 25 million individuals are working under forced labor condition, and 47 % come from the Asia-Pacific region, according to the International Labor Organization.
The ones who are expected to address the use of forced labor are food and beverage companies.
An association created by the Humanity United named KnowTheChain (KTC) explained in a recent study that food and beverage companies’ effort is not sufficient to solve the current problem worldwide.
The same study also mentioned that by 2020, Coca-Cola will conduct more than 25 national studies on child labor, forced labor, and land rights for their sugar supply chain.
The company’s global head of workplace rights, Brent Wilton expressed in an e-mail:
“We are partnering with the pilot of this project to further increase transparency and efficiency of the verification process related to labor policies within our supply chain.”
According to Blockchain Trust Accelerator (BTA), an non-profit organization part of the project, this initiative will create a transparent registry managing workers and their contracts by using blockchain validation and digital notary capabilities.
The deputy Assistant Secretary mentioned in an e-mail,
“The Department of State is excited to work on this innovative blockchain-based pilot.”
He also added that since all the information concerning the contract will be recorded on the blockchain, it will create a validated chain of evidence, which will incentivize employers to respect the contracts.