A DLT association tries to fight counterfeit diamonds in China

Everledger, DLT’s supply chain company works with local Chinese diamond sellers to ensure customers receive only real gemstones.

In an announcement on August 25th Everledger, a global diamond digital registry, announced it will partner with Chinese e-commerce giant and the Gemological Institute of America (GIA) to implement a supply chain based on Distributed Ledger Technology (DLT) to check the authenticity of individual stones.

Due to the restrictions placed on companies during the pandemic, many buyers have chosen to buy diamonds online where quality and authenticity are difficult to gauge. In China, “digitally literate millennials” buy 68% of all diamonds sold online, compared to 45% globally.

A DLT association tries to fight counterfeit diamonds in China
A DLT association tries to fight counterfeit diamonds in China

Everledger, backed by Hyperledger Fabric, uses GIA classification reports to rate diamonds through Chinese e-commerce company JD Chain, a blockchain for anti-counterfeiting and tracking Customers can purchase a stone with information about its origin, color and clarity, carat weight and previous owners. According to the DLT company, this process will make more effective in detecting cases of fraud, including the double use of GIA reports.

Everledger was founded in 2015 with the aim of solving the problems that arise from buying conflict diamonds, Stones that are normally quarried and sold in a war zone to fund repressive regimes.

The supply chain company does not see the potential for diamond buyers in the Chinese market alone. Cointelegraph reported in December that the world’s largest diamond mining company, Alrosa of Russia, had partnered with WeChat operator Tencent to enable the app’s 1 billion users to buy diamonds online.

Some of the key players in the diamond industry have already worked with blockchain-based platforms to introduce DLT solutions that allow customers to buy authentic stones without conflict.

In 2018, De Beers Group, the company that invented the concept of the diamond engagement ring, announced that it was studying blockchain to improve transparency in the diamond value chain. That same year, Hong Kong-based major retailer Chow Tai Fook joined the Everledger Project to increase sales of its T MARK line, which featured traceable codes on diamonds so that their origin could be verified.

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