Russia’s Ministry of Education and Science has unveiled a blockchain-enabled platform for tracking natural diamonds.
The new blockchain diamond-tracking technology offers a system to help verify the originality of diamond products from its production to supply chain as well as ensure its authenticity from extraction and polishing right until arrival at the point of final purchase.
According to the report, the blockchain system developed by Russian startup Bitcarat.com – founded by graduates of Russia’s Technical University (MISiS) and National Research University; is essential as it provides a mechanism to safe guard market participants, investors and end customers from being swindled of their money in cases where synthetic (fake) precious stones are offered on the supply chain rather than natural diamonds.
Detailing the process, the Education ministry explains that under the new system, each diamond is provided with a digital code recorded on a distributed ledger (blockchain) and shared among all participants in the supply chain. Additionally, the system features history from extraction, cutting and tracking of transfers of ownership while offering guaranteed protection from breach of security data.
On its choice of Blockchain, the ministry emphasized that blockchain offers a platform to successfully trace all transactions including attempts to edit the precious stone’s code, which will in this case automatically signal an error message. The ministry also quoted plans for investors interest in the project which the developers hope to commence in the coming year.
Bitcarat further proposed future plans to issue a diamond-backed stable coin TXD, launch a digital diamond exchange DIAX, and a digital diamond bank to facilitate creation and trading of unique diamond futures; as it targets the mining and processing sector.
In October 2018, the world’s largest diamond mining company Alrosa (Russia) on its first attempt teamed up with fellow industry heavy weight De Beer on their blockchain-based diamond supply chain platform. Alrosa currently accounts for 95% of Russia’s diamond production and a quarter of the world’s total diamond extraction.
Russia’s government continues its support for the crypto industry; just as blockchain technology continues to proffer much needed solutions to mineral and commodity tracking systems even as the finance industry remains its biggest beneficiary. From precious stones to oil commodities, more companies are joining in on unified blockchain platforms for reduced costs and genuine products in their supply chain.
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