Crypto Analyzer

De Beers to launch first diamond blockchain; here’s how it will work

De Beers, the renowned UK-based diamond mining and trading company, is making headlines with the launch of its groundbreaking blockchain-based platform, Tracr. This innovative platform is set to revolutionize the diamond industry by tracking diamonds from the mining stage all the way to the retail store. Through a combination of data science and physical identification techniques, Tracr aims to eliminate duplicity and enhance transparency in the diamond trade.

Tracr, built on Etherium blockchain technology, has garnered significant attention from industry players, including major names in the Indian diamond industry such as Venus Jewells and Rosy Blue. The platform’s ability to cover the full diamond value chain, from the mine to the end consumer, is poised to instill confidence in consumers, increase efficiency for traders, and provide greater visibility for lenders to the industry.

Feriel Zerouki, Senior Vice President of International Relations and Ethical Initiatives at De Beers Group, expressed that the project holds the potential to bring about better product delivery, increased efficiency, and overall revenue growth for the industry.

The collaboration between De Beers and BCG Digital Ventures, a corporate investment and incubation firm, further illustrates the commitment to innovation. Deepak Gopalakrishna, Director of Global Blockchain Projects at BCG Digital Ventures, highlighted the platform’s privacy controls, allowing participants to selectively share data while maintaining privacy.

Notably, Tracr aims to bring both small and unorganized businesses onto a transparent platform, offering comprehensive tracking of diamonds from mining to cutting, polishing, and retail, using unique identifiers registered on the blockchain. While the pilot project initially focused on tracking rough diamonds above 10.8 carats, the platform has expanded its capabilities to include all diamonds between 5 and 10.8 carats.

To ensure the integrity of the system, all participants are required to undergo a Know Your Customer (KYC) process. De Beers has encouraged all industry players, including miners and traders, to join the platform, with the goal of integrating formal and informal diamond units onto a single transparent platform.

While the integration of formal and informal diamond units presents a challenge, De Beers is confident that Tracr will provide safe and secure services to all participants. The company is also working to minimize costs for smaller players, signaling its commitment to inclusivity within the industry.

In conclusion, De Beers’ Tracr platform represents a significant step forward for the diamond industry, furthering the quest for transparency, efficiency, and integrity in the trade of these precious stones. With its potential to bring about transformative change, Tracr stands to benefit all stakeholders in the diamond value chain, heralding a new era of trust and accountability in this esteemed industry.