The solution addresses environmental, social, and governance concerns regarding diamonds’ sources.
A new blockchain concept titled ‘Diamond Traceability’ is fighting against the extraction of blood diamonds in war-torn countries and is one of the first real-world applications that have supply chain visibility built into the technology. The technology was created by Sarine, a company that digitizes a diamond’s journey to its customer from rough (rock) to a polished gem. The Aura Blockchain Consortium (a non-profit which aims to promote the use of a single global blockchain solution open to luxury brands worldwide) then adopted the technology to provide full diamond traceability across its supply chains. Together, they hope to set a traceability standard that the whole industry can adopt. The diamond-specific solution will address environmental, social, and governance concerns regarding the source of diamonds purchased, specifically from conflict zones, often referred to as “blood diamonds.”
The solution is critical in documenting proof of each gem’s authenticity for both the company sourcing the diamonds and the consumer. In other words, it reduces fraud and increases supply chain transparency.
“Our solution enables the jewelry houses the ability to implement a traceability solution based on blockchain technology that is easily scalable and with low overheads to all their suppliers in the upstream and midstream diamond value chain,” says David Block, CEO of Sarine Technologies. In a blog post, Block stated outright that while the blockchain may be immutable (unable to be changed), it is not necessarily always a source of truth. You also have to be sure that the data you provide is as authentic and accurate as possible from the beginning of the supply chain.
Branded and co-branded reports from Sarine and partners will provide comprehensive information that follows your diamond from its rough form to polished gem. Diamonds are typically rated on a scale to determine color, cut, clarity, and gem’s carat. Sarine’s 4Cs e-grading technology is the first AI-driven diamond grading system. A digital certificate will accompany the diamond to explain the gem’s journey.
As we move forward, more couture and jewelry houses are seeking out solutions to move towards a sustainable future. At the forefront is Boucheron, who announced earlier this year that they are set to launch a new bridal jewelry line in partnership with Sarine to provide Boucheron-branded diamonds and reports powered by Sarine’s “Diamond Journey” technology.