We recently partnered with Everledger, a digital transparency company, to offer diamonds backed by the blockchain technology. Our purpose is to provide diamonds that have a more transparent story and meet higher standards of ethical sourcing.
Blockchain technology allows data to be recorded securely and unalterably as an asset, such as a diamond, an artwork, or a bottle of fine wine. By converging this record with other technologies, Everledger creates a unique digital identity for the asset and makes it available to all stakeholders. The resulting lift in transparency, confidence and trust lays the foundation for whole industries to advance.
Thanks to Everledger we can know exactly where a diamond came from and what it went through as it journeyed from the mine to the retailer and then to the customer. Everledger’s unique blockchain diamond tracking technology pinpoints where the diamond was mined and traces its steps as it went through the cutting and polishing process. Everledger also records every time the diamond changes hands and crosses borders as it travels to the retailer.
Backing a diamond on the blockchain gives the following benefits:
- A clearer proof of provenance
- An additional guarantee of ethicality
- A traceable history from the ground to you
- Greater transparency in its documentation
- Decreased environmental impact by encouraging the reduction of carbon emissions during transportation
- Greater sustainability because it increases the responsible use of land and energy
Just to be clear, all of our diamonds are conflict-free and ethical. They have been certified by the Kimberley process and come from ethical mines that invest in the well-being of their miners and the environment. But our blockchain-enabled diamonds are extra special.
Each blockchain-enabled diamond has its own unique story and paves the way for diamond sourcing to become even more transparent and responsible.
How does Everledger use blockchain to trace a diamond’s story?
Everledger creates a blockchain that captures the diamond’s entire story and eliminates doubts about its provenance and journey.
A diamond’s journey from the mine to a retailer is complex and the gem changes hands multiple times. During these exchanges, a diamond’s individual information can be lost, incorrectly copied and sometimes even corrupted.
Everledger’s technology helps prevent this from happening by recording and checking all of the diamond’s paperwork. These checks may include the mine invoice, the Kimberly Process Certificate (KPC) details, bills of entry, airway bills, supplier invoices, and grading certificates, just to name a few.
Everledger uses artificial intelligence (AI) technologies, such as optical character recognition (OCR), to triangulate all of the documents provided and verify these checks against claims made. Only after all of these checks have been successfully completed is the information uploaded to the database and then automatically written on the blockchain.
This marks the beginning of the diamond’s journey on the blockchain. Suppliers can then upload pictures of the diamond and record its identifying characteristics to form the first block on the diamond’s blockchain. Most importantly, once the data has been verified and uploaded, it is impossible to alter the record. This makes the supply chain more transparent than ever before.
A new record is created every time that the diamond changes hands, undergoes cutting or crosses a border. All the paperwork and pictures related to the event are once again verified and uploaded to form the next block on the diamond’s chain.
Everledger blockchain-enabled diamonds prove 6 vital claims:
- Legality – Every person and business related to the diamond are legitimate and act in good faith.
- Origin – Clear proof of origin.
- Chain of custody – A timeline proving who had possession of the diamond from the time it was mined until it reached the retailer.
- Human rights – Guarantees that the people and businesses that worked with the diamond do not use child or slave labour in their internal processes.
- Circularity – Contribution to a circular economy where waste and pollution are minimized, recycling and reuse are encouraged, and natural systems are renewed.
- Environmental Performance – A record of how participating businesses invest in protecting the environment by sharing energy consumption, waste production, and transportation data.
3 x 3 blocks for these images.
Thanks to Everledger and its blockchain technology all of this detailed information and supporting documentation is accessible to anyone who has custody of the diamond – including you.
Blockchain technology captures the unique identity of a diamond in two ways:
- The diamond has a digital identity.
Every blockchain-enabled diamond has its own digital identity that is often referred to as is its “digital twin”. This digital twin includes comprehensive details about the diamond’s visible characteristics, its place of origin and the unique journey that it has taken since it was mined.
This digital identity is supported and safeguarded by Everledger’s blockchain technology. This same technology makes it easy for the diamond’s owner to access the files in the diamond’s blockchain and even transfer ownership of the diamond to another person in the form of a diamond passport.
- The owner receives digital ownership.
The Everledger platform allows suppliers, retailers and private owners to keep the digital twins of their diamonds in an online vault. This makes it easy for them to see all of their assets in one place and also makes it possible for them to transfer ownership of a diamond by simply entering the email address of the recipient.
Every time the ownership of a gem is transferred, Everledger creates a blockchain-enabled, time-stamped event that transfers all the data connected to that gem into the vault of the new owner.
Having a digital identity and proof of ownership makes the diamond’s digital twin a non-fungible token or NFT. The diamond becomes a one-of-a-kind, verifiable digital asset that can be easily shared and transferred through the blockchain.
Are lab-grown diamonds more eco-friendly than natural diamonds?
We have noticed recently that multiple claims are circulating about how lab-grown diamonds are more eco-friendly than natural diamonds.
These claims must be taken with caution because growing diamonds in a lab consumes large amounts of energy. If that energy comes from renewable sources, the diamonds may qualify as eco-friendly. Unfortunately, most diamond labs burn fossil fuels to produce energy and this can harm the environment more than an ethical diamond mine.
Everledger’s blockchain technology can also be beneficial for laboratory-grown diamonds because it allows laboratories to register their energy usage and sources, as well as a variety of other factors that impact the environment.
If you decide to purchase a blockchain-enabled diamond from a lab, you can be confident that it is eco-friendly.
How much energy does the Everledger blockchain platform use?
Blockchain networks, like cryptocurrencies, require large amounts of energy to secure and verify digital records. Some cryptocurrencies consume an average of 275 kilowatt-hours of energy per transaction. This leaves a sizeable carbon footprint on the environment.
Everledger has taken steps to make its blockchain network more energy-efficient. The network is built on the Hyperledger Fabric Raft consensus protocol which uses approximately 10 billion times less energy per transaction than cryptocurrencies.
Through their technology and also their commitment to the environment, Everledger makes it possible for us to offer you diamonds that are guaranteed to be eco-friendly at the highest level.
Why do we provide blockchain-enabled diamonds only on request?
Blockchain-enabled diamonds are still a new technology and only a limited number of diamonds on the market have been blockchain verified. We expect to see this number grow with time but for now, we have opted to only provide them on request.