The brilliance of the blockchain! – Here, we are not talking aboutbuy diamonds with cryptos, but certification. Diamond mining company De Beers has launched a proprietary blockchain platform to manage its diamond production and distribution. The company has been working on a blockchain system for a long time to trace. The goal ? Record and manage its diamond mining, production and distribution worldwide. The platform test phase Trace started in 2018. The company eventually released it on a large scale to serve the entire diamond mining industry.
De Beers uses blockchain to certify its diamonds
De Beers has already integrated the system into its global operations. Moreover, 25% of its diamond production is recorded on Tracr. The platform will allow producers and retailers in this industry to access tamper-proof records. They will allowauthenticate, among other things, the origin of a gem. Businesses licensed to purchase rough diamonds wholesale will benefit from immutable registration of stone credentials. Thus, they will be able to provide retailers with additional assurance regarding the pedigree and origin of a gem.
De Beers touted the performance of the platform to be able to adapt to periods of high production. Indeed, Tracr will be able to register one million diamonds per week on the platform. This is a major step forward for centralized platforms, widely criticized for struggling to handle large volumes of data. Tracr will allow businesses and users to control authorization, use and access to gem data. At an individual level, each user will have their own distributed version of the platform. Much like a traditional node on other blockchains.
Privacy and security are paramount to the continued operation of the diamond industry. The blockchain-based system of Tracr also guarantees that every transaction on the platform is immutable. It also eliminates the threat of data tampering.
In 2021, Antwerp World Diamond Center (AWDC) and Bain & Company published a report on the diamond industry. This report highlights key industry trends and prospects for the next decade. The report indicates that consumers are increasingly involved in preserving the environment. Also, they are aware of the carbon footprint of mining operations.
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De Beers Group CEO Bruce Cleaver said that the launch of Tracr in the industry is a first step in the right direction. Indeed, consumer behavior is changing to align with environmentally friendly operations. Cleaver hopes to see technology ensure greater confidence in natural diamonds. It could become a catalyst for “technological transformation that will raise standards and raise expectations of what we are capable of delivering to our end customers”.
South Africa was the only country to see an increase in rough diamond production in 2020 according to the AWDC and Bain report. Botswana, Angola and the Democratic Republic of Congo recorded slight declines. Botswana’s Minister of Mines and Energy, Lefoko Moagi, believes that the tracr system will help the industry keep moving forward despite the economic uncertainty caused by the COVID-19 pandemic.
“Trust in the origin of diamonds is extremely important and we look forward to the rollout of this new program which will bring definite benefits to the diamond industry and greater confidence to consumers. »
Lefoko Moagi, Botswana Minister of Mines and Energy
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