De Beers CEO Bruce Cleaver stated that the diamond traceability platform –supported by blockchain technology – would provide a single, tamper-proof and permanent digital record for stones registered on the network.
“New technology is emerging that can enable the diamond industry to respond in ways that were previously unimaginable,” Cleaver wrote in a recent blog post on the company’s website.
According to the company, a working prototype is being piloted with a small number of participants following the success of an initial trial.
“We are very excited about this initiative and the benefits it could deliver across the diamond value chain, from producers through to retailers and consumers. We look forward to continuing to engage with industry stakeholders as we progress development of the platform over the coming months,” Cleaver said, adding that the technology would be accessible to all stakeholders in the sector once established.
A De Beers statement noted that a “full launch” was anticipated later this year.
In related news, Russian diamond producer Alrosa will also reportedly consider implementing blockchain technology.
According to Rapaport News, a spokesperson for the company said the move could help address challenges with conflict diamonds and undisclosed synthetics for its rough and polished stones.
“If the industry manages to build a tracing system, it would solve several problems and challenges it faces at the moment,” the spokesperson said in an email to Rapaport News.
Blockchain is a permanent digital record of transactions, which cannot be altered – thus rendering it “tamper free”.
The technology was established in 2009 as a way of preventing fraud in Bitcoin trade and is now being adopted for other uses where authentication is paramount. For diamonds, that means maintaining a record of activities that have taken place as well as the order they occurred in, who they occurred between and what they involved.
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