Page 57 - 25 Reasons

Bringing the internet of value to the diamond industry WHAT IS BLOCKCHAIN?
Blockchain technology is a way of passing
information from point A to point B in an
automated, transparent and safe manner that
cannot be tampered with.
According to Don and Alex Tapscott, the
authors of the 2016 book Blockchain Revolution:
“The blockchain is an incorruptible digital ledger
of economic transactions that can be
programmed to record not just financial
transactions, but virtually everything of value.”
Simply put, a blockchain is a series of “blocks”
Security and Internet Arti cial Distributed ledger of digital data carrying a time stamp, managed
privacy of things intelligence tech (blockchain) by a cluster of computers. Each block is secured
to the other using a cryptographic “chain”.
Ensuring that the Allows the Industry State-of-the-art An immutable ledger
diamond industry’s to connect the methods of that stores the diamond According to Blockgeeks.com, because the
data and digital physical and digital objectively observing industry digital assets blockchain is shared and cannot be altered or
assets are stored worlds via capturing a diamond to and allows for the falsified, the information it holds is open for
and shared value chain data from determine its journey transfer of digital anyone to see, “hence, anything that is built on
securely is across the diamond through the value resources with trust of the blockchain is by its very nature transparent
fundamental for Industry chain a valid transaction and everyone involved is accountable for their
any digital platform actions”.
In practice, when the Tracr™ blockchain
technology is implemented, only ethically
a monetary value. This marks an evolution sourced and produced diamonds will be
from the Internet of Things (relating to registered on the platform, giving a digital
connected devices that transmit data) that timeline or family tree of each stone’s journey
further blurs the line between the physical from source to shop window.
and digital worlds.
It’s a space in which physical assets of BLOOD DIAMONDS
value can be represented digitally as data, HOW FAR HAVE WE COME?
and Zerouki says it holds great opportunities An ugly blot on the global diamond industry
for companies to showcase their sustainability was highlighted by the release of the 2006
credentials in a transparent and reliable way. film Blood Diamond, starring Leonardo
A digital revolution is under way in diamond DiCaprio, which shone a spotlight on the
mining as technology is used to propel this problem of conflict diamonds, or “blood
classic gemstone into a smarter, more diamonds”.
connected future. According to the World Diamond Council,
A Bain & Company report released last year these are diamonds (usually rough and uncut)
said that one of the main trends shaping the that are illegally traded in war-torn areas to
future of the global diamond industry was fund armed conflict. Apart from the human
the increasing influence of digitisation. cost of the lives lost in these civil wars, people
“Emerging and maturing digital are often subjected to slave-like conditions to
technologies are affecting all parts of the extract these gems.
value chain, enabling diamond producers, Growing awareness of this problem meant
midstream players and retailers to increase that diamonds – once the epitome of glamour
An employee holds a diamond with tweezers efficiencies within their operations. Marketing and eternity thanks to the immortal tagline “a
to grade it with a loupe efforts that use digital technology can also diamond is forever” – began losing their lustre,
deliver superior customer experiences,” it said. despite diamond producers’ assurances that
Plus, it will give the industry an ecosystem The advent of Tracr™ bears out this their stones were ethically mined and that
through which to build value-adding prediction. But, Zerouki says, De Beers Group local communities shared in the wealth.
applications – much like the invention of the is not stopping at blockchain when But even before the film’s release, the 2003
smartphone opened the door for multiple harnessing technology to create a more Kimberley Process brought together
apps to be developed and launched. sustainable mining future. government, industry and civil society bodies
However, it remains to be seen whether “For example, we are looking into the to agree on a certification process for ethical
the costs of authenticating a diamond will possibilities of carbon-neutral mining, which diamond production. Eighty-two countries
be passed on to the end buyer. could be achieved through tapping into the signed it into law, ensuring that 99.8% of the
“Tracr™ is a B2B platform, whereby we potential of kimberlite, a diamond-bearing world’s diamonds now come from conflict-free
provide the infrastructure for the industry to rock that captures carbon dioxide through a sources.
efficiently communicate and trade,” says process known as mineral carbonation,” she The World Diamond Council also created the
Zerouki. “It is for the industry to decide on says. System of Warranties in 2002, which was
the value of providing information on their Whether it symbolises bling, elegance or an updated last year. It outlines responsible
diamonds’ credentials, be it ethical sourcing or eternal bond, consumers will soon be able to business practices for the industry and ensures
expertise in craftsmanship.” rest assured that the exquisite diamond they it adheres to ethical human rights practices.
are wearing has a history and guarantee Zerouki says: “Once the risk was identified,
Tapping into the internet of value embedded in its digital DNA. They’ll know proactive collaboration within the industry
This application of blockchain technology in that it’s natural, beautiful and conflict-free – helped protect diamond equity, and
the diamond industry is just the latest and deserving of all the “oohs” and “aahs” it encouraged industry players like ourselves to
innovation to be delivered by Industry 4.0, elicits. continue to do more and invest in initiatives
powered by the Internet of Value, which . To find out more, visit the Tracr™ that support transparency – because we have
relates to the digital transfer of anything with community at tracr.com a great story to tell!”
ANGLO AMERICAN 25 REASONS TO BELIEVE 57