Leading Firms Are In A Partnership To Trace Diamonds
Two leading diamond companies have come together to test projects that seek to trace the mineral.
Blockchain Technology To Track Diamonds From Mining Phase
Leading global diamond producers have inked a deal to test blockchain technology in tracking the valuable asset.
The two groups, Alrosa and De Beers made the deal public on Monday. The former is the second largest producer of diamonds globally. Alirosa revealed that it will take part in the Tracr trial product. De Beers is already testing out the technology.
The firms want to have the capability to trace diamonds from the first production stage to their stop at the retail chain. If the project is a success, clients will be able to efficiently trace their diamonds. In a press statement by Tracr, the project will also enable customers to determine the authenticity of the precious stones.
According to Tracr, it aims to promote consumer confidence. The platform wants to assure consumers that the product on the system is natural and does not create any conflicts. Historically, precious minerals like diamonds have been known to cause conflicts in mining regions by attracting belligerents.
According to Alrosa CEO, Sergey Ivanov, having an efficient tracking system will promote growth and development of the sector. He also stressed that consumer confidence is an important benefit since some gaps in product information will be filled in.
Ivanov said that their aim is to ensure that consumers enjoy their products stress-free. He pointed out that they won't completely eliminate all ethical issues. He further expressed his delight to take part in the project. He added that for tracing to be a success, all players must cooperate with one another as a way of achieving their common goal.
On the other hand, De Beers boss Bruce Cleaver stated that the system will be used in tracing the volume of diamond produced. He pointed out that if the project is a success it will be beneficial to consumers and the entire diamond industry.
According to Cleaver, they started exploring the idea of tracking diamonds back in 2017. He wanted to have a system that coulld provide a secure digital register for storing data about diamonds.