According to the diamond grou’s CEO, Bruce Cleaver, the diamond traceability platform is underpinned by blockchain technology, which allows for a highly secure digital register that creates a tamper-proof and permanent record of interactions and therefore a diamond’s path through the value chain.
“In a blockchain, each event or transaction is registered in a database backed by advanced information security technology. This chain maintains a record of the activities that have taken place, the order they occurred in, who they occurred between and what they involved,” said Cleaver.
Cleaver noted that the blockchain protect is unique that the system is able to verify activity on the chain without needing to reveal sensitive details to the wider community. He said participants can be confident that a transaction occurred, but safe in the knowledge that the sensitive data remains between them and their counterparty.
“Once established, the blockchain will operate as a shared platform, on top of which a range of solutions could be built. It can be thought of as akin to a smartphone and a range of apps – once the base blockchain technology is established, participants in the ecosystem can build applications for various uses, whether that’s as a trading platform, financial assurance tool or consumer-facing solution.”
Cleaver emphasised that he was mindful that the technology would spark more questions than answers, but he assure that it was necessary for the industry and the group would continue to work with leaders across the industry to create a project that was collaborative and inclusive, secure, private and one that created a comprehensive record of a diamonds journey.
“In a world of fleeting connections and disposable luxury, diamonds must stand for enduring value that is grounded in confidence. Confidence that a diamond has been responsibly sourced, confidence in its value and confidence that it is the real thing,” said Cleaver.