Russia’s Ministry of Education and Science has launch a blockchain-based diamond tracking platform. The technology has been developed by Russian startup Bitcarat.com, which was founded by graduates of the Russian technical university MISiS and the National Research University.
Based on emerging IT technologies and blockchain, the new system provides a guarantee of the authenticity of diamonds across all the supply chain, from extraction to the final owner.
The system is aimed to prevent diamond market participants from losing money as the market has both natural and synthetic diamonds, as well as fake gems. The basic principle of blockchain allows the system to trace all the transactions, including each attempt to edit the code, which will automatically signal a falsification.
As a reminder, previously in 2018, Hong Kong-based jewelry retailer Chow Tai Fook Jewellery Group announced using blockchain platform to track diamonds. Some of Chow Tai Fook’s diamonds were put on Everledger’s blockchain diamond tracking platform and secured by the IBM Blockchain Platform.
Diamond and precious stones market is still very open to fraudulent activity and we see this happening all the time. A prime example is Sierra Leone where there are diamonds being mined illegally and people trying to defraud the system by coming up with fake certificates. Large players such as De Beers, Fura Gems looking to blockchain as a way to solve this problem once and for all.