Blockchain Technology Now Being Used to Track Natural Diamonds in Russia to Avoid Fakes
Blockchain technology is widely accepted in multiple industries now, which has plenty to do with the transparency and traceability that it offers. The Ministry of Education and Science (Minobrnauki) in Russia has chosen to apply the blockchain benefits to the tracking of natural diamonds. This new application was reported by TASS, a government-backed news agency.
The tracking technology will maintain a clear record through the supply chain of the authenticity of diamonds. Optimally, the information will take users from the extraction site to the final owner of the gem. The goal of the system is to prevent the loss of financial assets for investors in the market, considering the abundance of both natural and synthetic diamonds, along with fake gems.
Minobrnauki says that the technology’s creation is due to Bitcarat.com, a Russian startup that graduates from the Russian technical university MISiS and the National Research University developed. The process involves assigning a digital code that specifically corresponds to each diamond. That code is logged on the ledger, and all participants on the chain have access to it. The system allows for continual updates, showing the tracking of ownership and sales.
The main principle is that the transactions will be logged for these diamonds and will signal tampering if there is any attempt to change the assigned code. Though there has not been a funding round of any sort yet, the Ministry expressed that they will be seeking investments in the next year.
Russia’s Alrosa, the largest diamond mining firm in the world, joined another industry giant named De Beers in their efforts to establish diamond supply chains.