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Alrosa Is Latest to Consider Blockchain
Dec 25, 2017 6:56 AM
By Leah Meirovich
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RAPAPORT... Alrosa is considering implementing blockchain or other
technology ideas for its rough and polished stones to address challenges with
conflict diamonds and undisclosed synthetics, the miner told Rapaport News.
“If the industry manages to build a tracing system, it would
solve several problems and challenges it faces at the moment,” a spokesperson
for the Russian company said in an email last week.
“It will allow [the industry] to close the issue[s] of
conflict diamonds, as well as undisclosed synthetics. In an ideal scenario, the
traceability system should track and provide…information about [the] time and place
of mining a rough diamond, information about manufacturers, and all the steps
the stone [went through] before it hit the store shelves,” the miner added.
The idea of using blockchain to track diamond transactions has gained momentum recently, with De Beers this month announcing it was investing in the tracing system. A study by the Antwerp World Diamond Centre (AWDC) last year detailed the opportunities blockchain offered the diamond industry, and the organization is now in talks with De Beers about a potential joint venture, according to a recent statement by the Belgian trade body.
Meanwhile, Alrosa is currently studying options related to the digital ledger, and has
taken the first steps toward tracking in the Russian market by providing a
paper certificate containing a unique ID number that traces the origin of each
stone manufactured in its polishing division. The document includes
information on where and when the company mined the rough stone.
While that identification method is currently only available
for sales of polished diamonds to Alrosa clients, the miner
aims to extend it to an electronic platform that would allow consumers to
access a stone’s information, including origin, cutting history and
characteristics. The miner plans to begin this as a pilot project in the
Russian market, the results of which will determine whether it will extend the
project to other countries.
“The creation of such a system would make the diamond
industry more transparent, which is very important for modern consumers
[wanting] to know everything about the product they buy and about the impact, including
social, it causes,” the spokesperson continued. “It might not only build
consumer confidence, but also give some added value to our product, since
consumers have a willingness to pay a certain premium for guaranteed origin.”
Blockchain technology, originally devised for digital
currency, keeps a permanent, tamper-proof record of all transactions that occur
within a platform. In the diamond industry, it could allow users to trace stones
from origin to destination, helping to deal with significant issues, such as eliminating
conflict diamonds or undisclosed synthetics from the supply chain.
Image: Alrosa
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Tags:
Alrosa, Antwerp World Diamond Centre, AWDC, Blockchain, Bruce Cleaver, Certificate, Conflict Diamonds, De Beers, Diamonds Alrosa, Leah Meirovich, Rapaport News, undisclosed synthetics
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