How the Jewelry Industry can Apply Blockchain Distributed Ledger Technology
Application of Blockchain in Jewelry Industries
Ever since the history of mankind, gems like Diamonds and Golds have always represented exquisiteness, and luxury, for this reason the value of these precious gems have never been underestimated. However, the overall authenticity of the purity of these gems has always been one of the most difficult tasks in the jewelry industry. There have been reports overflow in the media of certification labs giving false grades to the purity of gems like diamonds. Research shows that there have been implications that some laboratories cave in to demands from jewelry suppliers, retailers, and manufacturers to get a higher grade for gemstones.
The uncontrolled system allows dishonest companies mine counterfeit diamonds, and counterfeiters flood the market with convincing fakes, making verification of the source of the gems a big challenge. What could be the feeling of a consumer regarding diamond with an untraceable journey?
As a result of these false gradings and traceability issues, there is a rising feeling of doubt among consumers about, the purity and whether gemstones that are graded as a certain color or clarity are indeed as specified. Also, consumers want to be certain that these gems were not mined by exploited labor and in a sustainable way. Research has found consumers are willing to pay more for such proof. Its now becoming a matter of obligation for companies to desist from trying to influence the outcomes of certificates from labs and renew the consumers’ faith in certification.
The blockchain, a distributed computing model that influences the smart contract, could be a solution. At its core, the blockchain produces a permanent, tamper-proof ledger. The technology makes it easy for individuals to pull out their smart phones, scan a QR code on the gem they are willing to buy and have a visual of the entire supply chain right on the smartphone.
Leading jewelry companies that have struggled with proving the authenticity of their goods are now launching blockchain solutions to improve global provenance in jewelry supply chain. The digital ledger tracks and protects these valuable gems throughout their journey from the mine to final consumers by tracking the characteristics, history, and ownership of these gems right from the source throughout the entire chain to create a permanent record on the blockchain.
Several companies have announced their involvement in building the blockchain solution.
Top 3 Solutions for Jewelry On the Blockchain
Some of these companies include:
The TrustChain Initiative is a collaboration among responsible and ethical organizations across the jewelry industry supported by the governments. The initiative includes Asahi Refining, Helzberg Diamonds, LeachGarner, Richline Group and Underwriters Labs collaborating with IBM. The initiative utilizes IBM’s advanced technology solution developed to improve global provenance in the diamond and jewelry supply chain. This unique solution tracks and authenticates gems and jewelries at all stages of the global supply chain, from the mine to the retailer, and to the consumer. This collaboration between IBM and TrustChain is built to engage with the wider industry on a solution that will expand efficiency in dealing with the movement of jewelries.
Everledger is another startup that uses the blockchain, smart contracts and machine vision to support the efforts in the reduction of risk and fraud for open marketplaces. It is also built on IBM’s digital ledger that monitors and protects jewelries throughout their journey from the mine to the retailer, and to the consumer. One of the major benefits of using Everledger is having one immutable and continuously updated record of transactions that is shared to all network participants. If a gem or jewelry is recorded on blockchain, its provenance can be tracked back to its origin. Everledger has already proven the tracking of provenance of a jewelry recorded on the blockchain possible by logging the identifying characteristics of over 1.6 million diamonds on blockchain.
Tracr is also a collaborative, industry-focused digital platform conceived by De Beers in 2017 to securely track the comprehensive transition of diamond from mine to customer for the diamond industry. The initiate was found by a group of experts with strong expertise in blockchain architecture.
What are you waiting for? You can also explore variety of opportunities available in the blockchain-jewelry space to power your business.