It seems like it will only be a matter of time before using the Blockchain to track diamonds from their source to their sellers is a normal practice in the Diamond industry. According to a report today by Coindesk, De Beers and Alrosa, which are the number one and two companies in this industry by revenue, have now joined together to pilot a project that aims to implement end-to-end tracking of diamonds on the Blockchain.
All in all, the greater goal of this project is truly improve the process of provenance in the space, which, judging by an Alrosa press release on the subject, could do with more transparency. If you are familiar with the primary use case of the Blockchain, from its effective inception with the Bitcoin network, then you know how powerful it can be in terms of doing this.
As long as the companies keep their Blockchain public, anyone will be able to see where their diamonds come from and even, what places they have passed through on the way to the store where they were eventually purchased. In doing this, Tracr, which is the name of the project that both companies are involved with, aims to specifically show that all of the diamonds registered on their Blockchain are “natural and conflict-free.”
According to the CEO of De Beers, an added benefit of Tracr is the ability to better track all diamond production by the companies involved, which he reportedly stated would help customers and suppliers.
The initial announcement for all of this was last year but now it appears that the project has just started to actually go live in its pilot stage. Given that Tracr also touts privacy and security as some of its driving values, it will be interesting to see whether they can effectively balance these goals with the added goal of transparency across their industry’s value chain.
By: BGN Editorial Staff