Sourcing

De Beers Piloting Blockchain Platform for Diamonds

SourcingJan 26, 2018

De Beers Piloting Blockchain Platform for Diamonds

Blockchain is a technology that’s poised to transform industries in the coming years, and De Beers wants diamonds to be one of them.

2016-De-Beers-rough-diamonds.jpg
De Beers just launched a pilot blockchain program for the diamond supply chain. Blockchain is the technology behind bitcoin and also is now being employed by banks, as well as in real estate and music streaming.
New York--Blockchain is a technology that’s poised to transform industries in the coming years, and De Beers wants diamonds to be one of them.

Last week, the diamond miner and marketer announced it has launched a pilot blockchain program for diamonds in partnership with BCG Digital Ventures, a subsidiary of Boston Consulting Group that’s investing heavily in blockchain.

Best known as the technology behind bitcoin, blockchain is a secure digital ledger that is decentralized, meaning it exists across multiple computers and servers and is not owned by any one user or organization.

For the diamond industry, De Beers’s David Prager said it will be used to register each interaction with a stone—like when it is cut at factory or graded at a lab—that then becomes part of the “block” of information about that particular diamond as it passes through the supply chain.

Each block must be validated by the blockchain community before it is added to the digital ledger.

When “chained” together, these individual blocks will form a digital record for each diamond.

Though it is being developed by De Beers, Prager said the diamond blockchain will be accessible by all industry participants, but will not include lab-grown diamonds.

“This is a diamond blockchain to record a diamond’s journey as it passes through the full value chain,” he said. “It is not for other products, whether they be lab-grown, precious metals or simulants. This means that the diamond blockchain will be able to provide the industry and consumers with clear and unambiguous assurance that their diamond is natural.”

It will be governed by an independent, nonprofit organization, the details of which are still being worked out.

A key focus of the pilot program is making the blockchain compatible for a range of operating systems for computers and phones.

When asked which companies will shoulder the extra cost blockchain will bring to the supply pipeline, Prager said De Beers is making the initial investment in blockchain because it believes it’s important for the diamond industry and that, ultimately, the efficiencies it will create in the supply chain will reduce the cost of doing business for many users.

“We are very excited about this initiative and the benefits it could deliver across the diamond value chain, from producers through to retailers and consumers.”–De Beers Group CEO Bruce Cleaver
 Having a Blockchain for diamonds would serve several purposes that De Beers and other players undoubtedly see as critical to the industry at this juncture.

First, keeping track of stones from mine to market allows the people who sell them to comfortably say this diamond is what it’s being presented as—for example mined, not lab-grown—and comes from an area of the world currently free of conflict.


Secondly, having a product that is traceable is more attractive to banks, which have been exiting the industry in great numbers due to concerns about diamonds being tied to money laundering.

“We are very excited about this initiative and the benefits it could deliver across the diamond value chain, from producers through to retailers and consumers,” De Beers Group CEO Bruce Cleaver said. “We look forward to continuing to engage with industry stakeholders as we progress development of the platform over the coming months.”

De Beers said its pilot blockchain program involves a “small number of participants.” While it isn’t disclosing company names, it said the partners “span the diamond value chain” and do include some sightholders.

A full launch is expected to take place later this year.

De Beers executives were in New York ahead of the Gem Awards and 24 Karat Club events last week pitching their blockchain project to the broader industry, including members of the U.S. Jewelry Council, a group of trade organizations that work together to ensure U.S. representation on responsible sourcing issues at the governmental and international levels.

Among those in attendance was Ronnie VanderLinden, president of the Diamond Manufacturers & Importers Association of America (DMIA), who said, “While this is still at an early stage of development, De Beers’s willingness to cooperate with and seek advice from all industry participants bodes well for successful development and implementation of this initiative. We look forward to continuing to work with them as it develops so we can make sure our members stand to see maximum benefit.”

De Beers has launched a website specifically for blockchain, which includes a section where visitors can sign up to receive updates as the project moves along.

While the miner and marketer works on developing a blockchain specifically for diamonds, a separate effort is underway to apply the technology to the colored gemstone supply chain.

Swiss gem lab Gübelin announced earlier this month that it is working with technology company Everledger to develop a program that will trace colored gemstones from mine to market, which it says will be the first of its kind.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Kira Diam solar plant
Lab-GrownMar 27, 2024
Indian Lab-Grown Diamond Manufacturers Keep Growing

A combination of factors is driving growth in the industry despite the precipitous drop in prices across the board.

SRK Empire and SRK House
Policies & IssuesMar 27, 2024
SRK Exports’ Journey Toward Net Zero Impact

By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.

Georgia May Jagger Tommy Hilfiger ad campaign
FinancialsMar 27, 2024
Movado’s Full-Year Sales Sink 11%

The company plans to invest $25 million in marketing initiatives to boost awareness around its namesake and licensed brands.

Jewelers of America Fly In Washington, D.C.
Brought to you by
How Jewelers of America Represents Your Business

For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.

Hand holding shopping bags
SurveysMar 27, 2024
Consumer Confidence Held Steady in March

Optimism about the current state of the economy was offset by anxiety around inflation and the political environment.

Weekly QuizMar 21, 2024
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Bernadette Mack
Policies & IssuesMar 27, 2024
Mercury Free Mining Hires Bernadette Mack

The former WJA executive director is MFM’s new managing director.

April Is Diamonds Do Good Month
Policies & IssuesMar 27, 2024
Diamonds Do Good Announces Its April Initiative

DDG encourages retailers to educate customers on the positive impact of purchasing natural diamonds.

BTYB-HoBrothers-updated.png
Brought to you by
The Scalable, Professional, and Effortless Solution for High-Demand Custom Jewelry Retailers

Ho Brothers offers scalable solutions for the future of custom jewelry.

Tiffany & Co. With Love, Since 1837
MajorsMar 26, 2024
Tiffany & Co. Debuts ‘With Love, Since 1837’ Campaign

Highlighting the most iconic Tiffany collections, it’s inspired by the company’s late window designer, Gene Moore.

National Jeweler columnists Duvall O’Steen and Jen Cullen Williams
ColumnistsMar 26, 2024
Creative Connecting: AI Tools and Tips for Social Media

Jen Cullen Williams and Duvall O’Steen explore how jewelers can save time and money by using AI to analyze engagement and create content.

Nordstrom Men’s Store New York City
MajorsMar 26, 2024
Nordstrom May Go Private, Says Report

The retailer previously turned down an $8.4 billion offer in 2018.

Interior of Miami Lakes Jewelers
IndependentsMar 26, 2024
Miami Lakes Jewelers to Close After 37 Years

The Florida store’s owner Miguel Gonzalez is retiring.

 International Gemological Institute
GradingMar 26, 2024
IGI Announces Tech for ID’ing Lab-Grown Colored Diamonds

The lab stresses the importance of accurate identification, as the difference in price is “substantial.”

Kendra Scott lab-grown diamond jewelry
CollectionsMar 25, 2024
Kendra Scott Debuts Lab-Grown Diamond Fashion Jewelry

The brand also plans to expand its retail footprint from 138 to 200 stores over the next three years.

Instappraise logo NAJA logo
Events & AwardsMar 25, 2024
NAJA, Instappraise Offering Scholarships for Aspiring Jewelry Appraisers

One is reserved for a NAJA member, the other for a non-member.

Carie Lehrke and Megan Mattice
MajorsMar 25, 2024
Borsheims Announces New VP of HR, Assistant Manager

Longtime employees Carie Lehrke and Megan Mattice have received promotions.

My Next Question graphic vintage jewelry webinar
Recorded WebinarsMar 22, 2024
Watch: How to Buy and Sell Vintage Jewelry

Three guests joined National Jeweler and Jewelers of America to discuss trending time periods, spotting reproductions, and more.

Chris Clipper and Robert Lepere
MajorsMar 22, 2024
David Yurman Announces New CFO, Chief People Officer

Chris Clipper and Robert Lepere join the company with 50 years of combined experience.

Nakard pyrite earrings
CollectionsMar 22, 2024
Piece of the Week: Nakard’s Pyrite Earrings

The trendy, metallic earrings wink at classic spring colors.

Stock image of police cars with their lights on
CrimeMar 21, 2024
Sparks Fly as Burglars Lose Safe on California Freeway

JSA said a man and woman pulled the safe out of an Oakland jewelry store but couldn’t quite get it into their van.

Grizzly Mining rough emeralds
SourcingMar 21, 2024
Grizzly Sells 4,145-Carat Emerald for Over $1M

The miner’s March auction generated $19 million.

Helen McCluskey
MajorsMar 21, 2024
Signet Jewelers Names New Board Chair

Helen McCluskey will succeed H. Todd Stitzer when he meets his 12-year term limit in June.

Julia Roberts wearing a Chopard necklace
CollectionsMar 20, 2024
Julia Roberts Co-Designs New Chopard Jewelry Collection

“Chopard x Julia Roberts” showcases the first gems cut from the 6,000-carat-plus “Insofu Emerald."

Tanzanite white gold ring Jared
FinancialsMar 20, 2024
Signet’s Q4 Same-Store Sales Sink 10%

The jewelry giant also posted a double-digit drop in same-store sales for the full year.

Gold and diamond Baume & Mercier watch Elvis gave to Dodie Marshall
AuctionsMar 20, 2024
Vintage Baume & Mercier Gifted by Elvis Going Up for Auction

Elvis gave the watch to actress Dodie Marshall after filming “Easy Come, Easy Go.”

Sketch of Suhan Wang necklace design
Events & AwardsMar 20, 2024
See the Winner of GIA’s Design Competition

The Gianmaria Buccellati Foundation Award for Excellence in Jewelry Design was presented to a graduate of the GIA school in Taipei.

Stock image of a gavel and handcuffs
CrimeMar 19, 2024
Jewelry Factory Supervisor Arrested for Allegedly Stealing Precious Metals

The man was charged with money laundering in connection with the theft of gold, silver, and platinum over the course of three years.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy