Since the beginning of mankind, gold and diamond have been a symbol of luxury and exquisiteness. This is the reason why the value of gems and jewelry has never been overlooked. But, the jewelry industry has struggled to prove the purity and authenticity of the precious gems. Several reports suggest that the certification labs are handing false grades when it comes to the purity of precious gems like diamonds. Certain laboratories even give up to the demand from retailers, manufacturers, and jewelry suppliers to earn a higher grade for the gemstones.
So, what is the solution to all of this? Several large jewelry studios have started executing the Blockchain Technology. At the core of this technology, Blockchain enables a tamper-proof and permanent ledger. This technology will enable every individual to use their smartphones to scan the QR code which they wish to buy and get the visual of the whole supply chain right away on their phone.
The leading jewelry companies which were struggling till now to prove the authenticity of the goods have now understood the importance of Blockchain Technology solutions. This is improving the global provenance in the jewelry supply chain. How is Blockchain Technology helping the jewelry industry?
The digital ledger not only tracks but only protects the authenticity of valuable gems all throughout the journey from the mines all the way to the final consumers. This is done by tracking the characteristics, ownership, and history of the gems from their source all the way to the entire chain to maintain a permanent and confidential record in the Blockchain.
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What is Blockchain Technology?
You may have heard of Bitcoin. Blockchain is the same technology that powers Bitcoins or any of those cryptocurrencies. Blockchain is nothing but a breakthrough technology which is about to alter the course for industries in the years to come.
It is a distributed database that exists on several computers at once. Blockchain keeps on growing as new blocks or sets of records are added to it. Each of this block has a timestamp and is linked to the block previous to it. This way it forms a chain. No one, in particular, manages the database, instead, everyone in the network has a copy of the entire database. The old blocks get preserved and new ones are added irreversibly to the ledger. This makes it impossible to manipulate the documents, information, or other transactions.
IBM Blockchain, Provenance, Food Industry, Warranteer, Loyyal, Blockpoint, Spotify, etc. are some of the many examples of companies where Blockchain Technology is being used.
Which industry can make the most of Blockchain Technology?
Blockchain technology can establish the needed trust through code and collaboration rather than offering all the power to a central authority. This is undoubtedly revolutionary, and Blockchain Technology has the potential to revolutionize every industry. Here are a few –
- Legal Industry
- Real estate
- Aid organizations and charities
- Ride-sharing and rentals
How is Blockchain Technology implemented in the jewelry and diamond industry?
Only a professional jeweler and expert can spot the difference between a mined diamond and a synthetic one. The increase in the growth of fake diamonds and gems is affecting the jewelry industry and causing a rise in the consumer’s mistrust. One of the ways to bring an end to the issue of source and authenticity of gems and diamonds, the industry is finally looking at Blockchain Technology to verify them. So, how does it all work out? When the buyer uses the relevant app on their smartphones they, all information will be verified including the source and quality of the gems without affecting the confidentiality of the buyers in the supply chain.
TrustChain is the global jewelry industry initiative which is utilizing the Blockchain Technology in order to track all the precious gems and diamonds used in a piece of jewelry which is ultimately delivered to the customers.
Which service providers are offering Blockchain Technology to implement services for the jewelry industry?
TrustChain initiative continues to be a collaboration among all the ethical and responsible organizations that is invested in the jewelry industry and is supported and recognized by the Governments. This initiative includes Helzberg Diamonds, Asahi Refining, Richline Group, LeachGarner, and the Underwriters Labs all of which is collaborating with IBM.
The collaboration between the TrustChain and IBM is built in order to engage with the entire jewelry and diamond industry to improve the efficiency when it comes to dealing with jewelry.
Other initiatives include Trace along with De Beers and Everledger which are using the Blockchain Technology for the gems and jewelry industry.
The motive is to build trust and simultaneously allow the customers to verify the authenticity. There is still a long way to go and blockchain cannot solve all problems but this is a great start.