Alrosa, the world’s second largest diamond maker has announced that it is joining Tracr, the blockchain-based end-to-end diamond tracing solution developed by South African diamond behemoth De Beers Group for the purpose of ensuring that conflict diamonds do not enter its supply chain.
In a statement published on its website on October 29, the Russian company revealed that it is joining the project because it supports the goal of protecting consumers and ensuring the integrity of the authenticity of their diamonds.
In May, CCN reported that Signet Jewellers, the world’s largest diamond jewelry retailer joined Tracr as part of a growing movement to ensure that diamonds sold to consumers are not so-called “blood diamonds” – products of illegal slave labour from African war zones which effectively fund wars and armed criminal groups in countries like Angola, DRC and Sierra Leone.
After months of anticipation, Tracr recently demonstrated its capabilities with the successful tracking of a set of diamonds by De Beers. Under Tracr’s framework, each diamond is given a unique ID code as soon as it is mined. This code contains information about the stone’s weight, color, and clarity, which is then stored on a blockchain where it can be accessed by all Tracr participants.
A number of major diamond industry players have already committed to the Tracr project as the gem industry increasingly recognizes the blockchain as a solution to the supply chain challenges of ensuring transparency, trust, traceability, privacy and compliance. Consumers who buy diamonds from these organisations are thus assured that their diamonds have passed through different layers of compliance and certification from the Kimberley Process Certification Scheme, World Diamond Council System of Warranties and Responsible Jewellery Council Code of Practices.
Alrosa’s decision to join Tracr further underscores the importance of blockchain technology to the diamond industry as the two largest diamond producers in the world operating in the two largest diamond production zones on earth – South Africa and Russia – will now collaborate on developing and improving the platform.
Speaking about the partnership, Sergey Ivanov, CEO, Alrosa, said:
“Traceability is the key to further development of our market. It helps to ensure consumer confidence and fill information gaps, enabling people to enjoy the product without any doubts about ethical issues or undisclosed synthetics. Alrosa is glad to participate in testing Tracr, along with other market solutions. We believe tracing requires industry cooperation and complementation for the sake of a common goal.”
Bruce Cleaver, CEO, De Beers Group expressed delight at Alrosa’s decision to join Tracr, saying that the collaborative efforts of the world’s two largest diamond producers will deliver “significant benefits for consumers and diamond industry participants.”
Featured image from Shutterstock.
Last modified (UTC): October 15, 2019 14:09