Many people may first know Blockchain through investing cryptocurrencies, and the most famous one is bitcoin. Bitcoin is essentially a series of the publicly linked ledger of transactions that are stored in the Blockchain. There are many extensions that we can do based on the bitcoin platform, such as diamond track. According to the news, In 2018, Hong Kong, China jewellery retailer Chow Tai Fook had started to use De beer’s blockchain platform called Tracr to track diamonds for their origin and authenticity. Another project called Everledger was introduced at the same time.
Why Blockchain for business?
Blockchains develop decentralized, distributed, and digital records of transactions that are anonymous, tamperproof, and unchangeable. Furthermore, by using blockchain technology, intermediaries will be removed in theory; however, this is not always the case. To be more specific, Blockchain enables the system in a decentralized form, which allows multiple parties to trade in a trustless condition, and information can be shared with fewer privacy concerns. Despite that, Blockchain can improve efficiency as it reduces papers and unnecessary procedures. In the light of the inherent characteristics of Blockchain described above, it can track diamonds lifecycle & ownership transfer for its origin to store.
How to use Blockchain to track diamonds?
The diagram above illustrates how diamonds tracked through the project called Everledger. Everledger offers innovative technological solutions to a variety of products, in which the characteristics of the products are critical. Diamonds can be verified through all kinds of ways. For example, diamonds can be verified by 4C’’s, 14 meta-data points, and the GIA number of the diamond. That unique information will be recorded on the Blockchain, which can never be changed. This platform has brought greater transparency to the market and ensure the authenticity of the products. Despite that, the ownership of the assets can also be protected.
Please refer to https://www.altoros.com/blog/a-close-look-at-everledger-how-blockchain-secures-luxury-goods/ for more information on how diamonds tracked through Everledger.
Blockchain is still an emerging technology that accompanies many challenges. Existing markets may refuse to switch to blockchain technology as they highly rely on their legacy systems. With diversified interests with different stakeholders, the diffusion of emerging technology may become complicated. Furthermore, the lack of experts, regulation concerns, and compatibility of the technology can impact the further deployment of its use. However, the usefulness of Blockchain has been realized by more and more parties. With more studies on the Blockchain, it will be accepted and change the business eventually.
References:
https://www.altoros.com/blog/a-close-look-at-everledger-how-blockchain-secures-luxury-goods/
https://bitcoin.org/bitcoin.pdf
https://www.everledger.io/making-the-commercial-case-for-blockchain-diamond-tracking/
