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Blockchain would be used to trace the Origin of Diamonds

Blockchain would be used to trace the Origin of Diamonds

On April 26, IBM announced that it has joined hands with the pioneers of gold and diamond industry to track the origin of finished pieces of jewelry.

The TrustChain Initiative will be a syndicate of jewelry retailer Helzberg Diamonds, precious metals supplier LeachGarner, independent verification service UL and jewelry manufacturer The Richline Group.  The aim of the group would be to introduce more transparency and trust across the supply chain with the help of blockchain technology.

The initiative is based on the Hyperledger Project and IBM’s Blockchain Platform. It will record a real time track of the diamonds from their place of origin to their retail location. The idea is to assure customers of the authenticity of the jewelry by providing “digital verification, physical product and process verification, and third-party oversight,”

IBM Senior Vice President of Global Industries, Platforms and Blockchain, Bridget van Kralingen, said: “Consumers care deeply about the quality and source of the jewelry they purchase. This is evidenced by the fact that 66 percent of consumers globally are willing to spend more to support sustainable brands. TrustChain is an example of how blockchain is transforming industries through transparency and viable new business models that specifically benefit the consumer.”

Through the use of blockchain technology the new formed group aims to digitalize the processes and establish a shared, immutable record of transactions within the network. It also wants to access trusted data in real time.

Richline Group’s Chief Marketing Officer, Mark Hanna, commented, “TrustChain is the first blockchain of its kind within our industry, designed as a solution that marries IBM’s leading blockchain technology with responsible sourcing, verification and governance by third party organizations, led by UL as the administrator.”

As per the latest reports the product will be launched for jewelry consumers by the end of the year. Back in this year, Lucara Diamond, a Canadian gem-quality diamond producer, purchased a digital platform known as Clara Diamond Solutions. The platform uses the blockchain technology to trace the origins of the diamonds.

Recently, the company was lucky to find a 327-carat top white-gem diamond. The incident took place just after two weeks of unearthing a 472-carat light brown stone. It is the ninth-largest diamond discovered by Lucara which has listed the company among the very best in the world.

Impact, a Canadian NGO, abandoned the Kimberly Process initiative in January 2018. Although the strategy was to eliminate any conflict within diamonds yet Impact was not satisfied with its results saying, “There’s no meaningful assurance that a diamond is conflict free […] The public is under the wrong impression that the problem is solved.”

Blockchain technology is being backed by almost all the governments of the world. Switzerland is one of the forerunners to use the breakthrough technology for growth and development of the country. As of now there are many blockchain based projects coming up to solve real lie problems especially in the trading sector. It won’t be wrong to say that future will be dominated by blockchain applications.

About the author

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Brian Booker

An international financial analyst and writer. He has consulted for the Malaysian government, various MNC’s, and other organisations. He focuses on currencies, commodities, and emerging South East Asian markets.

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