Blockchains are forever: DLT makes diamond industry more transparent

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From diamond hands to literal diamonds. The diamond industry is embracing blockchain to improve production, tracking and sales while solving ethical concerns.

Diamonds are some of the world’s most valued gemstones, and the global diamond industry has managed to remain afloat despite being partially eclipsed by the emergence of modern stocks and novel virtual assets.

While it has yet to directly provide a solution to all the concerns of the diamond industry, blockchain is being used to solve a few of them by facilitating transparency that helps track the provenance of diamonds. This is primarily aimed at suppressing the sales of “conflict diamonds.” Diamond mining corporation De Beers Group has

About 99% of the global diamond mining process is carried out in nine countries with Russia, Botswana, The Democratic Republic of Congo, Australia and Canada respectively considered the top five countries involved. Diamond mining is almost monopolized, with companies such as ALROSA and De Beers controlling a large portion of the industry.There are a few reasons why investors do not seem to be flocking to the 68-billion-dollar enterprise that is the diamond industry, especially in recent times.

Aside from the sale of diamonds to fuel conflict, numerous reports of unscrupulous labor tactics used toworkers in mining sites have surfaced. Child labor also appears to be prevalent in the majority of these areas. However, the Kimberley Process has been condemned by organizations such as the Canada-based nongovernmental organization IMPACT, and Global Witness, an NGO headquartered in London which looks to prevent natural resource exploitation and human rights abuses, among other things. They alleged inefficiency.

 

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I was on a flight from London yesterday, and contemplated the possible rise of a Bitcoin Cartel. The whales have a real time advantage on retail, and the proliferation of useless Alt’s/NFT’s works in their favor.

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