Today, ALROSA which is De Beers biggest competitor joined the Tracr blockchain pilot. De Beers is developing the platform in collaboration with industry stakeholders and hence is “creating the blockchain platform by the industry, for the industry.”
According to Bain & Co, in 2016 the rough diamond market share of the two producers was 70%. Russia’s ALROSA is the world’s largest diamond producer by volume, and De Beers is the largest by diamond value.
Sergey Ivanov, Alrosa CEO, 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.”
And there are several other solutions in progress. Everledger was the first to apply provenance to diamonds, and they work with the GIA (Gemological Institute of America) for grading. Six months ago IBM announced TrustChain for gold and diamond industry players though its focus is more on finished pieces of jewelry rather than raw diamonds. Plus there are initiatives in Hong Kong and China.
Bruce Cleaver, CEO, De Beers Group, said: “To provide true traceability, diamonds must be tracked from their point of production. We are delighted that Alrosa has joined the Tracr pilot, as the collective efforts of the world’s two leading diamond producers will enable more of the world’s diamonds to be tracked on their journey from mine to retail.”
Tracr aims to provide diamond provenance for consumers to demonstrate that certified diamonds are real and don’t come from conflict areas. Additionally, it will improve visibility and trust throughout the diamond supply chain.
In the statement, Tracr said it plans to support existing initiatives such as the Kimberley Process Certification Scheme, World Diamond Council System of Warranties and Responsible Jewellery Council Code of Practices.