Diamond traceability added to the Aura blockchain, of which Cartier and Bulgari are members – Ledger Insights
Today, the Aura Blockchain Consortium announced an agreement with diamond technology company Sarine Technologies to add its Diamond Journey traceability solution to its offerings. The luxury consortium was founded by LVMH, the Prada group, Cartier de Richemont and the OTB group. The jewelry brand Bulgari is one of the LVMH brands that use the blockchain platform, just like Cartier.
There are two main reasons why this type of solution is useful for luxury brands. First, it is a key step in proving the authenticity of the gem, both for the company sourcing the diamonds and for the end user. In other words, it reduces fraud.
The second reason is to address ESG concerns about sourcing diamonds from conflict areas, known as “blood diamonds”, and to be able to demonstrate this to the consumer.
“Our solution enables jewelry houses to implement a blockchain-based traceability solution that is easily scalable and with low overhead for all their suppliers in the upstream and mid-stream diamond value chain. value,” said David Block, CEO of Sarine Technologies.
In a 2019 blog post, Block rightly stated that while blockchain may be immutable, it is not necessarily a source of truth. You need to make sure that the data you add is not garbage.
It is also more convenient to add the data in an automated way using IoT-enabled systems, which theoretically reduces the possibility of corrupting the added data. Producers create 3D models of rough diamonds at source. This is used throughout the diamond’s life cycle, including adding the intended polishing result. Artificial intelligence is used to match the final polished diamond to the original rough gem.
Meanwhile, Aura is a non-profit consortium providing members with blockchain tools. Its General Secretary, Daniela Ott, said: “We anticipate that other leading luxury brands will soon join our unique consortium.
The Aura blockchain uses the Quorum enterprise blockchain.
Diamond traceability was one of the first real applications in the blockchain industry. At first, the two most important players were the startup Everledger which signed up Alrosa, today the world’s largest diamond miner, and the Tracr consortium founded by De Beers. Solutions have been adopted in Asia, where Chow Tai Fook from Hong Kong has adopted the technology with DiamsLedger providing provenance in mainland China.