Who benefits from using blockchain solutions in diamond market today?

The exotic nature of diamonds offers enormous opportunities and advantages for money laundering and tax evasion. Precious gems developed an international supply chain which became a result of billions in losses each year. According to an investigative report of Global Witness, which fights natural resource exploitation, diamonds sales have been noticed on the markets of Facebook and What’sApp.

The United Nations did their best to stop the flow of diamonds and in 2000 came to the decision of implementing the “Kimberley Process” which presents a three-step verification to make diamond mining countries provide declarations on each stone. Now the system of export and import control works in 75 countries. Nevertheless, the resolution covers only rough diamonds used by rebel groups to finance wars against legitimate governments what means that jewellery market is not under full control.

“We see document tampering where one stone has been claimed across similar timelines with multiple insurers,” says Leanne Kemp, CEO and founder of Everledger, a company that uses blockchain to track and protect precious stones. They create a unique thumbprint on each stone, and now their blockchain system collects 1.6 mln diamonds providing information about authenticity and provenance of gems. So, the blockchain technology prevents double financing, or lab-grown stones from being falsely identified.

Though, blockchain is used to make the global diamond market transparent and secure, it makes life easy only for manufacturers, not for customers. That’s why we are creating Diamond Open Market which will be available to everyone and provide you with fair prices what is unicity on this monopolized market.