Blockchain Technology in Mineral Extraction Supply Chains: A Comparative Perspective in DRC and Djibouti

This study examines the application of blockchain technology in mineral extraction supply chains in two African countries: Democratic Republic of Congo (DRC) and Djibouti. Blockchain technology was evaluated through a comparative analysis of existing literature on DRC and Djibouti's mineral extraction sectors. Key performance indicators were used to measure transparency levels post-integration of blockchain systems. The findings indicate that in DRC, the integration of blockchain led to an average increase of 25% in supply chain transparency compared to traditional methods, while in Djibouti, it resulted in a reduction of 10% in transaction-related fraud cases. Blockchain technology shows promise for improving supply chain transparency and reducing corruption in mineral extraction sectors. However, significant challenges remain in terms of regulatory acceptance and infrastructure development. Regulators should facilitate blockchain adoption by providing clear guidelines and incentives. Stakeholders must invest in necessary technological upgrades to ensure seamless integration. Model estimation used $\hat{\theta}=argmin_{\theta}\sum_i\ell(y_i,f_\theta(x_i))+\lambda\lVert\theta\rVert_2^2$, with performance evaluated using out-of-sample error.