Diamond trade adopts block chain tech

Chennai: As part of the industry's efforts to prevent conflict-ridden diamonds entering the trade, diamond miners have started using block chain technology. This will help track the diamond value chain.

Blockchain, the record-keeping technology, relies on distributed and decentralized public ledgers to limit the modification of data once it is logged. ALROSA and De Beers Group are using the TRACR pilot programme, which aims to apply blockchain technology to the tracking of diamonds through the value chain, according to a report by Diamond Producers Association.

TRACR is a shared database of transactions that can give each individual diamond a unique ID that stores its weight, colour, clarity and transaction history. This would mean that participating companies could trade, and consumers enjoy diamonds with complete confidence about the origin and quality of their diamonds. This development is of importance for India too as it is the largest diamond processing hub.

This programme will further augment the The Kimberley Process (KP) in which 82 countries work cooperatively to prevent conflict diamonds from entering the rough diamond trade.

Kimberly Process is an international partnership between countries, NGOs and the diamond industry through the World Diamond Council (WDC) and is supported by the UN and WTO. Over the last 15 years the percentage of conflict diamonds in the global diamond trade has declined significantly from 15 per cent to less than 1 per cent.

Further, digital innovations like GemFair seek to source ethical artisanal and small-scale mining diamonds and secure their route to market. GemFair provides artisanal miners with traceability, empowerment and fair market value.

The programme is implemented in partnership with the Diamond Development Initiative (DDI) and the digital solution includes an app to track diamonds recovered by artisanal miners throughout the supply chain.