Following the successful digital tracking of 100 high-value diamonds from mine to retail in a pilot of Tracr, the first blockchain platform to span the entire diamond value chain, the venture is now set for official launch later this year.
De Beers is collaborating with BCG Digital Ventures to build the platform and the underlying technology, which will be open to the industry, providing asset-traceability assurance in a way that was not possible before.
Five leading diamond manufacturers – Diacore, Diarough, KGK Group, Rosy Blue NV and Venus Jewel – also teamed up with De Beers to develop the first blockchain technology to provide a single, tamperproof and permanent digital record for every diamond registered on the platform.
“When fully operational, Tracr will provide consumers with confidence that registered diamonds are natural and conflict free, improve visibility and trust within the industry and enhance efficiencies across the diamond value chain,” says De Beers CEO Bruce Cleaver.
Conceived by De Beers in 2017 and following months of research and industry consultation, a pilot project was launched in January with a selection of rough diamonds mined by De Beers tracked through an immutable and secure digital trail that was created by Tracr as they moved from the mine to cutter and polisher, and finally to a jeweller.
This diamond platform builds on the fundamental features of blockchain technology to create a tamperproof and permanent record of a diamond as it travels through the value chain.
“By leveraging blockchain technology, we will provide an additional layer of assurance to consumers and industry participants, with every diamond registered on the platform having a record as everlasting as the diamond itself,” Cleaver says.
A unique global diamond identity (ID), created automatically on Tracr, stores individual diamond attributes, such as caratage, colour and clarity, through integration with the participants’ existing record-keeping systems.
In addition to a simple barcode-based unique ID, Tracr incorporates complex data science models to create a unique signature for rough and polished diamonds for verification and authentication.
According to the Tracr website, all uploaded data is verified at each key milestone of a diamond’s journey; however, users will remain in full control of what they share with other participants through the use of privacy controls.
“We look forward to sharing the platform with more partners in the coming months and capturing their insights before ultimately making this technology available to the broader industry,” says Cleaver.
“Technology has already significantly contributed to improving transparency within the diamond industry,” adds Rosy Blue MD Amit Bhansali, concluding that initiatives using blockchain can drive this process even further.