Today, the diamond sector supports the livelihood of 10 million people globally, including 99.8% Kimberley Process certified. What if we lost track of these beautiful white jewels? The diamond’s journey of three billion years highlights the over-supply of rough diamonds redefining the next value diamond would take. ExJewel deep-dived into finding the next diamond trend. Discover the diamond blockchain: Diamond transparency in the supply chain.
Diamond truth: The Oldest Object you will ever Touch
Older than the dinosaurs or even life on earth, most natural diamonds were created between one and three billion years ago, around 100 miles below the earth’s surface. Over the course of millions of years, volcanic eruptions have propelled only a small number of these diamonds to the earth’s crust. Humans first discovered diamonds 4,000 years ago. Since then, diamonds became every girl’s best friend. Today, the diamond sector supports the livelihood of 10 million people globally, including 99.8% Kimberley Process certified. Diamond recovery gradually decreased and are rarer every day. It’s no wonder that diamonds symbolize our most intimate relationships and important life moments.
Diamond is Forever
According to DeBeers, diamonds are all about foreverness, a ‘multi-faceted’ strategy for diamonds demands. In the past decade, diamonds were meant to be worn uniquely symbolizing eternal love and unity between two people of any gender. Their mission was clear. Diamond needed to become every girl’s best friend. Here is the story of how the diamond industry shaped itself around the idea of becoming forever. By 1951, 8/10 brides in the United States received a diamond engagement ring. The engagement diamond tradition was established.
Real is a diamond: the new millennials
According to the Diamond Producers Association, diamonds are all about realness. They created several attention-getting, sometimes racy ads specifically directed to new customers: Millennials. Nevertheless, they don’t portray an idealized love, but rather a relationship. The diamonds are not the focus of the ads but flash by. “We wanted to go away from a traditional diamond ad,” says DPA CEO Jean-Marc Lieberherr. By this means, “these ads are about the couple. They are not about diamonds. They are about the role that diamonds play in their lives.”
Diamond Transparency in the Supply Chain
The diamond industry of 2020 is all about transparency, from mine to finger. In the diamond sector, provenance is of the essence. Fraud costs the insurance industry millions of dollars every year. To tackle this issue for the diamond trade, various companies have built a verification system on the blockchain* which will serve insurance companies, banks, mining companies, certification houses, and retailers. The technology enables them to record diamonds within hours of them leaving the mine and track their flow through the supply chain. Fraudulent claims are quickly detected by cross-referencing data sources.
The CEO of Everledger, Leanne Kemp believes that with consumers wanting to know more about the source of products, there is potential to apply the technology more widely across the retail industry. Few other actors are already providing a transparent diamond supply chain throw blockchain: TrustChain, Bitcarat, Cedex, Tracr, Haelixa, Gubelin’s Provenance proof just to name the few.
What is blockchain*?
Blockchain is a key technology behind this transparency vision, a form of data storage that records blocks of data in chains across a decentralized database. Since its first appearance in 2008 as the technology behind the digital cryptocurrency, the Bitcoin, other blockchain platforms have emerged. The real power of blockchain is the endless potential to remove the middleman from the supply chain equation. Described as the technology that adds a layer of trust to the internet, it makes possible secure online diamond transactions through a distributed database that records events in time-stamped blocks. With each block in the decentralized digital ledger linked to a previous block, diamond blockchain creates an immutable record of events. The data cannot be altered retrospectively. Value can be exchanged more quickly, safely and cheaply.
According to DeBeers, diamonds are meant to be forever. According to the Diamond Producers Association, diamonds are just real. What if both ideals were actually right? The world would actually turn into chaos. What is chaos without order? Blockchain made transparency an objective in the course of recent years with an end goal to help strengthen new beliefs, revised objectives and processes, and thorough ecological and social guidelines. Let’s build a trusted sustainable supply chain.