Blockchain Helps Track Diamonds

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Diamonds are as valuable as they can be controversial. The “conflict diamonds” or “blood diamonds” are those mined in war-torn areas and often used to illegally finance the fight.

Blockchain technology is now being used in boosting clients’ confidence that the stones they purchase do not come from illicit sources.

De Beers, one of the diamond giants, announced that it tracked 100 high-value diamonds all the way from the mine to the retailer. The entire journey was tracked using the Blockchain technology.

This is the “first time a diamond’s journey has been digitally tracked from mine to retail.”

Tracr

De Beers, together with five other diamond manufacturers, developed Tracr. The new platform aims at ensuring that the diamonds only come from legitimate sources.

“The Tracr project team has demonstrated that it can successfully track a diamond through the value chain, providing asset-traceability assurance in a way that was not possible before. This is a significant breakthrough made achievable by the close engagement of the pilot participants who share our commitment to industry progress and innovation…”

In short: each diamond gets a unique “Global Diamond ID” assigned by Tracr. The ID consists of various individual characteristics, like carat, clarity and colour. Data is stored in a digital ledger and verified at each step from the mine to the retailer.

De Beers operates in 25 countries around the world. It was founded in 1888 and had a global monopoly all until the beginning of 21st century. It operates mines in Botswana, Canada, Namibia and South Africa.

 

Do you think that the Blockchain technology will have an impact on Diamond industry? Let us know in the comments below!

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