Technology tracks the origin of investment diamonds

Studies indicate that consumers not only want to know how much their stone is worth, but even more from which country it derives. Diamond producer De Beers and Alrosa, the two largest diamond producers in the world, aim for a block chain technology, which must track all transactions from investment diamonds - from the part where they are delved to the trading part.

A block chain is a database that is resistant to tampering and counterfeiting. Even its manager cannot forge the data. A block chain can therefore ensure that a third party is unnecessary in order to guarantee the reliability of the data and/or transactions. The block chain in our daily economy can be useful for improving the reliability of the systems, the speed of transactions and data protection. By leveling property and the availability of data with a decentralized block chain system in a reliable way, interests may be better taken care of. The range of possibilities in the field of property is wide. Thus, copyrights, domain names, patents, mortgage certificates, notarial acts, legacies and other proprietary paper with block chain can be digitized.

Bitcoins have been working according to such a system. The advantage is that everything happens central and fully secured at the same time, while everyone is able to access it. For the diamond producers, it is a guaranteed system that can be tracked during the entire lifetime of a diamond.

When purchasing an investment diamond, a certificate will be provided, that indicates the carat weight and further qualities, according to the principles of the four C 's: Colour, Clarity, Cut and Carat (weight). That certificate is issued by internationally recognized institutes such as HRD (Diamond High Council) in Antwerp or GIA (Gemological Institute of America) in the United States.

However, these certificates do not mention where the diamond exactly comes from, from which country and which mine, and when they were found. De Beers and Alrosa want to change that. They are looking into the possibility of a block chain system for e.g. investment diamonds, whereby all transactions of a stone are being tracked online. GIA also takes a block chain into consideration as an extra service towards its customers.

Author: San Meuleman

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