How the block chain to promote the diamond industry vision, beyond the 4C standard

nnnA recent survey released by the non-governmental organization Global Witness shows that blood bank trade from the Central African Republic has entered Facebook’s online market. With the development of information technology and digital technology, the diamond industry is full of illegal activities, even if the legitimate diamond or there will be cash use of the background transactions. The problems surrounding these precious stones still exist. As a result, many retailers are taking action to improve the transparency of their diamond information, block chain technology is one of the solutions. In addition to diamonds as a jewelery, more manufacturers are trying to treat these gems as an alternative investment asset.n
nnTranslation: Clovern
nThe Central African Republic (CAR) blood bank, which is a resource-rich country, has entered Facebook’s online market. This is a survey published by Global Witness, a non-governmental organization aimed at combating the squeezing of natural resources. This fictitious buyer’s social media profile exposes this illegal digital activity. At the same time the organization found that WhatsApp and other instant messaging platforms have also been used as a tool to smuggle this conflict into the international supply chain.n
nIn order to prevent the flow of conflict diamonds, the United Nations as early as 2000 to make a landmark decision, this decision is called “Kimberley Process (Kimberley Process)”. To this end, also introduced a three-step verification method, which mining countries need to provide a written statement for each gem. More than 75 countries around the world that produce such diamonds have adhered to this program for setting import and export control regimes. However, the resolution covers only the rough diamonds used by the rebel groups to finance the war against the legitimate government. This process does not involve a wider range of trade-related violations of human rights. For example, Venezuela could not be removed from the Kimberley process by being able to produce strong legislation that validated the legitimacy of its diamonds.n
nHowever, the immoral dealer will still find speculative buyers. Even if it is legitimate diamonds, will be used to sell cash in the background of the sale known. The problems surrounding these precious stones still exist. In the insurance industry, fraudulent claims that lied to jewelry each year are usually caused by the loss of billions of dollars. Everledger is a company that uses block chains to build global shared digital classified books to track and protect valuables, and its chief executive and founder, Leanne Kemp, said:n
nn”We found the phenomenon of tampering with the file, the same time often have multiple insured claims for the same gem.”n
nnUsing machine vision, they record 40 metadata points to create a unique fingerprint for each gem. Kemp compared it to “forensic view of the tooth marks or iris scan.” Nearly 1.2 million diamonds will exist in the chain above the chain. And her technique helps to verify the authenticity and origin of diamonds through a single source in the supply chain.n
nAnd because of the industry-related risks, we all know that banks often avoid this diamond business. For profitability and compliance reasons, Standard Chartered Bank also closed the diamond sector last year, and ABN Amro became the only Western bank to serve the industry. Foreign goods such as diamonds are generally unpopular goods, and because of their nature, but also for money laundering and tax evasion has brought great advantages.n
nThe diamond industry has always been the certification body – the use of spectral analysis to identify the color grading of the laboratory, but there is no information on the central database. Lost diamonds rely on paper certification records. And as the information is stored in the block chain, it creates an aggregated data set, a shared visible record, and an audit trail, so that the way double wages, or lab-cultured gems, are misidentified. Alibaba such an electric business giant noted that synthetic suppliers are selling products with false GIA certificate as a natural gem. According to The Times India, the company was then removed from the site and included in the blacklist.n
nFrom online to offline, retailers are taking action to increase the transparency of their diamond information. The world’s largest jeweler, Chow Tai Fook (but not known outside of Asia) has taken the initiative to follow the supply path of its products from the mining site to the market. On the surface of the 4C features (color, carat, clarity and cutting), this Hong Kong brand pioneered the 4T standard: traceable, transparent, real and thoughtful. The T Mark concept records all the gems from sourcing to production. Chow Tai Fook jewelry group brand director Mr. Chen Yibang (Alan Chan) explained:n
nn”T Mark is what we call the internal Intel chip.”n
nnVertical integration of retailers from the most reputable diamond manufacturers to purchase, and has polishing, cutting and distribution and other midstream processes, and downstream sales platform.n
nThis closed system allows the company to record information, while other sellers can not access. Chan said:n
nn”We have not used the block chain yet, but we are considering it, and we are looking at the technology on the market, but that’s really a good way to help us move forward.”n
nnIn addition to diamonds as a jewelery, more manufacturers are trying to treat these gems as an alternative investment asset. And because of the lack of uniform pricing standards, in the past has been difficult to achieve this. But like gold, the charm of this gem is rare and permanent. But unlike gold and its open benchmarks, there is no change in the price of diamonds, which are usually covered with a mysterious veil.n
nWhile diamonds are unique and require separate assessment of the characteristics, some people think they can not be regarded as commodities, but with the introduction of the world’s first such commodity exchange – the Singapore Diamond Investment Exchange (SDiX), the industry is also beginning Change. They have also begun to deploy diamonds as financial assets and deploy technology. SDiX CEO Linus Koh said:n
nn”While the implementation of the block chain is still in its infancy, we are still seeing the potential for greater transparency and security for potential investors.”n

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