De Beers is investing in blockchain technology that will enable the industry to trace a diamond’s entire transaction history.
In a blockchain, a database stores every transaction that takes place, as well as the order in which the deals occur, who is involved, and what the nature of the activity is. This allows for a secure, permanent digital register of diamond purchases, creating a tamper-proof record of a stone’s path through the supply chain, De Beers CEO Bruce Cleaver said in a blog post Monday.
The new shared platform will be the first of its kind to offer traceability along the entire diamond pipeline, Cleaver said. In particular, it will make such verification possible without disclosing the deals’ details to the wider public, keeping sensitive data confidential, he noted.
Being able to track a diamond across the world is increasingly important to both consumers and the industry’s lenders, the CEO explained, and technology is coming on the scene that can help the trade respond to these new requirements “in ways that were previously unimaginable.”