Diamond giant De Beers plans to use blockchain technology

Diamond giant De Beers plans to use blockchain technology

The international Anglo-American company De Beers, specializing in the production and processing of diamonds, announced plans to use blockchain in the extraction and processing of stones.

The blockchain is a digital technology, which creates data blocks in a chain, where each element stores the information and the data are processed on multiple computers. Technology usually used to store information requiring high security. She is familiar to many in connection with the use of the blockchain cryptocurrencies such as Bitcoin or Etherium.

Diamond giant De Beers plans to use blockchain technology

De Beers, the largest international company in the market of diamonds is going to introduce a technology for marking precious stones.

As planned, each block in the chain will store the information about an individual stone, thereby reducing the possibility of forgery and giving the diamonds a special value.

It should be noted that this is not the first case of the use of blockchain technology in the market of precious stones. So, a start-up firm Everledger helps to reduce the risk and likelihood of fraud in banks, insurers and open markets, using the blockchain, smart contracts and vision technology.

«Using the blockchain, we will provide an additional level of confidence to clients and partners, and each diamond is registered in the system will be permanent to comply with this stone», — said General Director of De Beers, Bruce cleaver.

The firm also argues that the blockchain technology is a good complement already used standards and methods, as this will allow you to securely keep track of any diamond.

«It’s a huge mechanism, immutable, like all global inventions of mankind,» said Bruce cleaver in an interview with Reuters, discussing the blockchain. «It is much more immune system than anything based on a single server».

Cleaver also said that this innovation, as well as additional functions like mining can positively affect the system and draw in the sphere of investment.

It is also expected that these shortcomings of the blockchain as a fair use of electricity, shall not apply to the use of technology for marking diamonds.

Mark therefore, you can not only diamonds, but any other gems, and the introduction of such technology by De Beers company can change the rules of the game not only firms specializing in diamonds and other precious stones.