The blockchain industry has been evolving for over a decade now and has been catering to the needs of multiple private and government institutions. The most recent development has been its involvement in keeping track of legitimate diamonds and their source.
This need to check for their sources has arisen due to the existence of the conflict diamonds also known as blood diamonds. The illegally obtained blood diamonds make up almost 4% of the diamond trade, which is a whopping $72 billion, yearly. This is why it has become essential that the consumers have knowledge about where the diamonds come from. This includes details about how it was produced. It also enables the consumers to get an insight about its quality and if a fair price is assigned.
The solution to this problem has been offered in the form of a blockchain based ledger that would provide information about the diamond. This service is being offered by Rare Carat who has collaborated with Everledger, which is a global startup that uses blockchain to contributes in decreasing risk and fraud for banks and insurers, to bring forth a distributive ledger that could let consumers evaluate the quality of diamonds for sale or purchase all over the world. It also incorporates Artificial Intelligent algorithms along with the pre mentioned blockchain technology. That best thing about it is that it does not cost a penny. With the help of this technology diamond lovers can know the value and quality of diamonds.
Rare Carat does not retail diamonds. They just provide services of a search engine that can be used to check the legitimacy of the diamond to be purchased. This search engine can also be used to evaluate the diamond an individual wants to sell themselves. In addition they also provide GIA-trained gemologists who can offer some valuable counsel about the quality of the any diamond. The automated tool that helps the customers evaluate diamonds is called Rare Carat Report.
The developers incorporated at Rare Carat believe that the customers deserve transparency and can be saved from over paying for a diamond that is not worth the price tag. They can also verify the place from where it was extracted. This is an effort to establish trust within the purchasers. Leanne Kemp, Everledger Founder & CEO states;
Price comparison is one aspect of this partnership, but consumers still want to know more, like how a stone was manufactured. People are sure to see more price aggregation sites come to market, but will this be enough? We are bringing a layer of trust to consumers with the Rare Carat Report.
This is how it works. The consumer enters the diamonds certificate number a report is generated that displays a detailed assessment describing the price and strengths and weaknesses of the diamond. You can also browse for diamonds by specifying their shape and the rating they are assigned but the Artificially Intelligent Algorithms. This is what Kemp had to say about the blockchain-based ledger they designed;
People typically think about the killer blockchain app for consumers from a cryptocurrency perspective. Yet Everledger is just now starting to show what that killer app could look like if we act as the persuasive layer that brings this out across the industry with items that matter. Right now, it’s a race to the bottom to produce products that are better, cheaper, faster. The reality is though, that the next wave of true consumer applications is where the consumer can have the full power in their hands to understand the total consciousness of choice.
The need for back tracking the original source has evolved because of the dealing of the blood diamonds. Customers are afraid of buying these illegitimate diamonds due to the extremely harsh environments in which they are mined. The labor that goes into mining have to endure extreme challenges. It is basic denial of human rights to those poor miners. In addition, this kind of operations have been used to fund civil wars and insurgencies. Due to these reasons, the knowledge about the supply chain of the diamonds have become a necessity.
The diamond supply chain is complex in that it has to follow a set of custody events. However, it takes more than just one company to enable a transition of this across the industry. Everledger acts as the connected tissue across the industry. We connect each participant through the supply chain and trace the diamonds to the source of origin back to the retail network. That is the baseline of our efforts, explained Kemp.
Therefore, the Rare carat promises to provide a detailed assessment of diamonds indicating their source and value. In their own words;
Our mission is to build the most trusted diamond and engagement ring marketplace to empower consumers with information and tools to make intelligent decisions.