The diamond market is worth about $80 billion. Its high value attracts many frauds as everyone wants to have a share in this market. Some of the most common crimes in this industry include theft, diamond-fueled conflict, and fraud just to mention a few.
The blockchain technology can be the answer to some of these underlying problems in this market.
Even though newbies on matters blockchain can only associate this technology with cryptocurrencies like bitcoin, other industries such as insurance, banking, freight, and supply are already embracing it. The diamond market happens to be one of the earliest adopters of the blockchain technology in ways such as:
If you want to buy a diamond in the traditional market, you are issued with a paper certificate that shows that the transfer of ownership from the seller to you. Such a scene can open loopholes for fraud as you can receive a fake certificate. It also becomes an issue when you are dealing with inter-boarder agents and other intermediaries in the market. The blockchain ledger can replace paper certification. The certificates will be recorded on the blockchain, and when one requests a transfer of ownership, there will be verification by various players in the platform. Such an approach will also enable multiple players to see the trail of the certificate in question.
Eradicate Blood D
The demand for diamond is very high, and that is why most militia groups try to control it in 3rd world countries. Blood diamond or conflict diamond is a situation whereby a militia group mines diamond, sells it to unsuspecting people and then use the proceeds to fund the war. Many people support wars unknowingly as it estimated that 15% of the diamonds in the market could be from warzone areas. The diamond ring or necklace on your neck might be the reason why a civilian is suffering in another country.
The blockchain can help track the path of diamonds from the mine to the user. In May 2018, De Beers sent a statement showing that they tracked diamonds from the mine until they arrived at the retailers’ outlets with the help of blockchain technology. Its blockchain platform is known as
It is very easy to get shortchanged especially when you are buying diamonds from individuals without meeting physically. It even gets worse if there intermediaries because they can interchange your product while still in transit. A tracking ID can be the solution as it will show the movement of the diamond until it reaches you. You will thus be assured that you will get what you ordered.
The blockchain technology is yet to be adopted fully, but we expect more. Experts on this field are still evaluating more possibilities, and we expect more in the future.