Russian Ministry of Education and Science has developed a blockchain-based platform to track the production of diamonds to ensure authenticity.
The purpose of the platform is to ensure the authenticity of the diamonds and tracks the entire production process from the extraction of the diamond to the delivery to the final consumer.
There is a massive need for a technology like this in modern times due to the fact that there are a lot of counterfeit diamonds out there produced by scammers. It’s also extremely difficult to tell the difference between the counterfeit version of a diamond compared to the legit one.
How blockchain tracking will work
Russian startup Bitcarat is the firm behind the platform and works by assigning a digital code to each diamond in the system which is stored on a blockchain.
This information is made available to interested parties at each stage of production and once the diamond changes hands, the change of ownership is also recorded.
The use of blockchain prevents the data from benign tampered with or removed. Should there be any attempt to falsify information or edit the information stored, the system will trigger a breach alarm and inform the users of the attempt.
Blockchain and supply chain
The blockchain concept proved efficient in the tracking of products that go through the supply chain such as diamonds. In 2018, Alrosa, which is the world’s largest mining firm, joined a Blockchain platform backed by the De Beers’ corporation to track diamond mining operations.
This isn’t limited to diamonds either as there is even a blockchain platform to track the authenticity of artworks and wine production, industries in which buyers need to beware of fakes. Needless to say, any industry in which a product goes follows a supply chain and could be falsified stands to benefit from the use of blockchain.