August 2nd, 2018
Digitizing Timber with Blockchain and IoT to Modernize Energy and Manufacturing Sectors in Laos
Derun (Laos) Investment Trade Limited Corporation (Derun Laos) will utilise a custom technology suite developed by International Digital Asset Management (IDA) that integrates blockchain, artificial intelligence (AI), and Internet of Things (IoT) technologies to manage a large-scale timber project in the Bolikhamxay Province, Laos.
As part of the Renewable Energy Strategy Development (2011-2025), Derun Laos acquired the logging and processing rights for 9,400 hectares from the Provincial Government to clear-cut a reservoir flood basin to power the anticipated Nam Theun No. 1 Hydroelectric Dam.
To increase the transparency, tracking management, utilisation, and value creation of the associated timber project, IDA is developing a custom application combining blockchain, AI, and IoT technologies optimised for the unique industry and site-specific challenges of the remote forest.
Based on a comprehensive 5,500-hectare survey of flora diversity conducted by the Institute of Forestry Sciences Research at the National University of Laos, in addition to the Derun Laos’ timber resources, IDA is working with additional suppliers to harvest the herbal resources for global Traditional Chinese Medicinal consumption.
Capacity building for the local Lao economy is an important focus for Derun Laos, projecting up to a 15-fold increase in value creation for forest resources. The deployment of a low-energy sensor network and wide area network (WAN) technology designed by French IoT leader Sigfox will contribute to better tracking and logistical coordination for an estimated 2.5-fold increase in timber utilisation.
Furthermore, the creation of a digitised supplier ecosystem on a public blockchain developed by MATRIX AI Network will support a network of value-added manufacturing services; leading to an estimated 6-fold value increase compared with current production practices.
The Nam Theun No 1 Hydroelectric Dam is expected to generate 650 megawatts of energy, constituting an additional 10% gain to Laos’ 2016 nation-wide production capacity, according to figures from International Renewable Energy Agency.
The hydroelectric energy distributed by state corporation Edl-Electricite’ du Laos will lower costs and increase access to modern power for Lao citizens in rural areas. Surplus energy will also be exported to neighbouring Thailand through the Electricity Generating Authority of Thailand.
“We’re proud to support the Bolikhamxay provincial government and contribute to capacity building by collaborating with global investors and world-class technology providers to upgrade the efficiency, safety, and transparency of resource management in the local timber industry.
Timber constitutes the largest export of the Laos economy but exhibits systemically low utilisation and value-added manufacturing. We intend for the IDA platform to make a long-term contribution to environmental sustainability and economic development.”
– Arthur He, IDA Founder.
“The deep forest of Laos is one of the best arenas to showcase how narrowband IoT capabilities and wide area networks can transform the face of the industry. We’re developing leading-edge data tracking capabilities for low-cost broadly dispersed resource management in some of the most rugged industry conditions.
We are excited to partner with the MATRIX blockchain to enhance the range and operational efficiency of IoT applications.”
– Yanick Yan, Senior Director, Global Ecosystem Partners, Sigfox.
“The ambitious scale and logistical complexity of the IDA project provide an exciting opportunity to further refine our enterprise suite of AI-optimised blockchain solutions, like deploying advanced IoT applications in the field.“
Owen Tao, Chief Executive Officer, MATRIX AI Network.
Press Release for ida.im