Blockchain technology is making diamond sourcing more responsible and major players from GIA to luxury brands are getting on the chain

In May 2015, Leanne Kemp founded Everledger, a global digital ledger designed to increase transparency in global supply chains, including when it comes to diamonds. Over the next nine years, the jewelry industry has moved ever closer to the potential of blockchain to strengthen provenance and build customer trust. This includes major brands incorporating technology to increase accountability in how diamonds are sourced and produced. Launched at scale in May 2022, the decentralized blockchain platform Tracr has registered more than one million rough diamonds at source and 110,000 diamonds at the producer level, according to De Beers Groupthe company behind the initiative.

Tracr CEO Wesley Tucker said the private Ethereum platform leverages distributed ledger technology to provide an automated and permanent record of where each diamond comes from, from mine to retail.

Tiffany & Co. NFTiff Pendant featuring one of 10,000 CryptoPunk characters. Photo: @TiffanyAndCo/X

“Scalability is supported by the fact that each user has their own ‘instance’ of the platform, which can be customized to their individual needs,” Tucker said.

“Our cloud infrastructure and API technology make integration seamless and enable the platform to scale by automating data ingestion.”

Since then, Tracr has integrated major industry players into its growing ecosystem, including the Gemological Institute of America (GIA), Sarine Tech (developing technologies for the diamond industry), and RapNet (which bills itself as the #1 online trading network for diamonds and jewelry). The platform assigns each diamond a unique digital ID, allowing retailers and consumers to access details about the stone’s provenance.

Blockchain has unparalleled potential to strengthen provenance and build customer trust, which are important factors when it comes to ultra-rare and extremely valuable gems, like this 14.83-carat intense pink-purple diamond. Photo: Sam TsangAs one of the world’s largest diamond producers, Of Beers It sources gems from operations in Botswana, Canada, Namibia and South Africa. As of February, Tracr had accounted for more than two-thirds of De Beers’ total global diamond production value.

According to a 2023 Delta Global study of more than 2,000 luxury consumers in Asia-Pacific, 93% are willing to support or spend more for luxury brands that actively promote sustainability initiatives.

In a world where consumers are increasingly concerned about where and how their diamonds are sourced, Tracr makes a significant contribution to supporting trust in the trade.

Tiffany & Co.’s inaugural NFT collection, NFTiff, in collaboration with CryptoPunks and on display in August 2022 at BCA Gallery in Shanghai. Photo: Handout

“Greater transparency into a diamond’s provenance helps retailers talk more clearly and with greater confidence about the positive impact of natural diamonds, as they can see the diamond’s journey from source to warehouse,” Tucker said.

In August 2022, Tiffany & Co. has launched a limited-edition line of digital and physical CryptoPunk charms, incorporating elements of transparency, authenticity and gamification offered by blockchain to strengthen brand engagement.

In May 2018, Everledger, in collaboration with Chow Tai Fook and GIA, began using blockchain technology to provide consumers with digital GIA diamond grading reports. GIA not only invented the “4Cs” of color, clarity, cut, and carat weight, but also created the International Diamond Grading System, which is the global standard for diamond quality.

De Beers Group has been instrumental in an initiative to register rough diamonds at source, using the Tracr platform. Photo: HandoutFull adoption of Blockchain Technology It remains an ongoing process. “There are many companies in the industry and the levels of technological sophistication vary significantly, from artisanal miners to large companies,” Tucker said.

Tracr is now focused on bringing more industry players into the diamond supply chain. A solution leveraging Sierra Leone’s GemFair ethical sourcing program is underway for the artisanal sector, Tucker adds. There are also plans to integrate Tracr with existing technology platforms such as enterprise resource planning systems and Sarine’s diamond scanning technology.

“Every new technology brings with it a change,” Tucker said.

“Our vision is to establish a single platform for the entire industry that can provide all the digital data that retailers and consumers need.”

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