This is not the first time that we are hearing about diamonds being tracked via blockchain. Last year, two of the biggest diamond producing companies came together to trace assets via blockchain. Incidentally, one of those companies, Alrosa, was based in Russia.
Now the latest news, as has been reported by local news agency TASS, is that Russia’s Ministry of Education and Science (Minobrnauki) has launched a blockchain-enabled platform, which would be able to track natural diamonds.
Completely modeled on up and coming IT technologies and blockchain, this new system will ensure that any counterfeiting can be checked in the market. It will ensure that market participants are able to clearly regulate and trace the circulation of their financial assets and do not suffer any loss.
The new technology has a singular aim to ensure that the authenticity of diamond products across all the supply chain is maintained and accounted for. Right from extraction and polishing to the final owner, everything will be stored on a blockchain for verification of quality.
This technology is the brainchild of a Russian startup called Bitcarat.com. It was founded by graduates of the Russian technical university MISiS and the National Research University. Some of the brightest minds of the country came together to develop this technology.
So how exactly will this system work?
The Russian Ministry of Education and Science claims that each diamond will have a digital code that shall be recorded on a distributed ledger and shared between all the participants of the chain. This will effectively ensure transparency and access to records by all stakeholders.
It will also be tamper proof since it is all being stored on the blockchain. So any attempt to edit the code will raise alarm and be stifled.
The history of transfers of ownership will also be recorded and stored on the ledger. The makers assure the public that it is a completely secure system that is virtually impossible to breach. They are already looking to secure investments in the year ahead.