Big jewelry companies are turning to blockchain digital ledger technology to certify the origins and aspects of diamonds and precious gems, letting companies and consumers access the information any time without being able to alter it. Blockchain’s cryptography features provide security for transactions and messages, and the blockchains run on networks shared by companies and accessible to consumers via the web or mobile devices.
Because each transaction “block” is computationally verified, updated, and encrypted on the participants’ chains rather than stored by one entity, blockchains establish a public record visible to all participants that’s less pervious to tampering. Companies such as Everledger maintain what are known as “permissioned” blockchains, meaning there are controls on who can access and verify data.
Blockchains have gained interest in banking, shipping, and agriculture, with the promise of lowering the cost of settling financial transactions or ensuring safety conditions of perishable goods. Now add tracing valuable jewelry to the list of use cases.The ability to thwart insurance or financing fraud is important in the market for high-value, highly portable jewels.