How blockchain technology can help end the trade in blood diamonds
The best way to certify legal and ethical diamonds in the future will be through an online ledger which ensures a stone’s journey can be digitally tracked from mine to retail
Blood diamonds, sometimes called conflict diamonds, are those mined in a war zone and sold to finance an insurgency, an invading army’s war efforts, or the activities of a warlord.
Since most commercial diamonds on the market have an unknown origin, and are therefore untraceable, the best way to certify legal and ethical diamonds in the future will be through blockchain technology.
Blockchain is an online ledger that maintains a data list that is encrypted to prevent tampering and revision. It consists of blocks which hold batches of individual transactions. Each block contains a timestamp and a link to a previous block.
Diamond giant De Beers said on May 10 that the company had tracked 100 high-value diamonds using blockchain technology. It is the “first time a diamond’s journey has been digitally tracked from mine to retail,” De Beers said.
De Beers said its new blockchain tracking platform, called Tracr, will eventually be made available to the entire diamond industry.
When Tracr becomes fully operational, De Beers said, it will provide consumers with the confidence that registered diamonds are natural and conflict-free. The platform will also improve visibility and trust within the industry, and enhance efficiencies across the diamond value chain.
Bruce Cleaver, CEO, De Beers Group, said: “The Tracr project team has demonstrated that it can successfully track a diamond through the value chain, providing asset-traceability assurance in a way that was not possible before.
“This is a significant breakthrough made achievable by the close engagement of the pilot participants who share our commitment to industry progress and innovation.