Power of Diamond Traceability: Building Trust in the Supply Chain
Posted by Hari Krishna
August 5, 2023
In an interconnected world, trust is the key for businesses to thrive. In the dazzling realm of diamonds, trust has been a burning issue. Nevertheless, the new era of diamond traceability has brought forth a revolution in the diamond industry.
The journey of a diamond from its source to the hands of its owner has been wrapped in mystery. This lack of transparency in the diamond supply chain has led to issues such as conflict diamonds, human rights abuse, and environmental degradation.
Diamond traceability is tracking a diamond from its origin to the end product. It involves recording and documenting information about each step in the diamond supply chain, including the mining, cutting, polishing, and distribution processes.
The rise of technology and growing awareness has paved the way for the advancement of diamond traceability.
“An increasing share of end clients want to make sure that their diamond’s values match their own, so issues of provenance – not just where a diamond came from, but how it was recovered and how it has benefited people and the planet – are becoming more significant,” said Feriel Zerouki, Senior Vice-President of Corporate Affairs at De Beers Group.
Ethical Sourcing: Ensures diamonds are sourced ethically, without supporting conflict or human rights abuses. It gives buyers confidence that the diamonds they purchase have been obtained responsibly and rightly.
Transparency and Trust: Builds trust among consumers by clarifying the diamonds’ origin, processing, and journey.
Counteracting the Issue of Blood Diamonds: Diamond traceability is instrumental in the fight against blood diamonds or conflict diamonds. It helps eliminate the circulation of diamonds associated with violence and unethical practices.
Environmental Responsibility: Promotes environmentally responsible practices in diamond mining and processing.
Supporting Local Communities: Enables consumers to support diamond companies that prioritise fair labour practices and contribute to the well-being of local communities.
Customer Confidence: Assures consumers that diamonds are sourced responsibly. It allows them to make informed choices aligned with their values, enhancing their confidence in the diamonds they purchase.
Verification of Authenticity: By tracking a diamond’s journey, consumers can confirm that the diamond they possess is genuine and not a counterfeit or synthetic stone.
Quality Assurance: By tracking the entire process – from mining to distribution – companies can provide clients with superior quality diamonds and craftsmanship.
Industry Accountability: Encourages transparency, ethical practices, and high standards throughout the supply chain.
Improved Supply Chain Efficiency: By accurately documenting each step, companies can identify and address inefficiencies, reduce waste, and improve productivity. This efficiency benefits both the industry and consumers by ensuring a smooth and reliable supply of diamonds.
Sustainability and Responsible Practices: It encourages companies to implement environmentally friendly mining methods, supports local communities, and minimises the industry’s social and environmental footprint.
Innovative technologies are revolutionising diamond traceability, making it more robust and reliable:
Blockchain technology has emerged as a game-changer in diamond traceability. Each diamond receives a unique digital identity, enabling easy verification of origin, characteristics, and ownership. By leveraging it, companies can instil confidence and trust in consumers.
Through advanced laser technology, unique identification numbers or codes can be inscribed on the diamond’s girdle, the outer edge of the diamond’s circumference. The code corresponds to the diamond’s digital record, allowing for seamless traceability.
Often in the form of encrypted files or online databases, digital certificates provide comprehensive information about a diamond’s journey. It includes data about the diamond’s cut, colour, clarity, carat weight, and origin.
With the surging demand for traceable diamonds, several platforms are launched with the help of technology that provides comprehensive identification for diamonds. These advanced traceability methods enhance the customer’s purchasing journey. Among these platforms, widely recognised names are:
It maintains and provides blockchain and QR-code-based software solutions. These cutting-edge tools enable tracking and tracing the journey of our diamonds through every step of the supply chain. It guarantees the authenticity and quality of diamonds.
Read more about our collaboration with iTraceiT: Hari Krishna Export Collaborates with iTraceiT to Ensure Diamond Traceability through Innovative Technology.
It utilises several technologies to generate an exclusive, tamper-proof digital fingerprint for individual diamonds. It enables comprehensive diamond tracing from its origin to manufacturing. Each step of the process is meticulously recorded, ensuring complete transparency.
Everledger, a global emerging technology enterprise and we, HK Exports, one of the largest diamond manufacturers and exporters in India, have marked a new milestone with digital provenance tracking for diamonds to secure and trace the diamond provenance of our flagship private label brand, My Diamond Story, using blockchain technology.
With this new development, we are pleased to bring the benefits of blockchain technology to scale. This alliance follows our initiative to incorporate blockchain into our updated mobile app for diamond buyers, built on three primary objectives – simplicity, speed and security.
The power of diamond traceability goes beyond its technical capabilities. Building trust in the supply chain creates a ripple effect of positive change throughout the diamond industry.
As we move forward, embracing the competency of diamond traceability will be crucial in shaping a responsible and trustworthy future for the industry, ensuring that every diamond tells a story of integrity and social impact.
Hari Krishna Exports aims to promote a more sustainable and ethical diamond industry by leveraging innovative technologies through alliances with platforms like iTraceiT and Tracr. These collaborations will strengthen our capability to provide our customers with high-quality, responsibly-sourced diamonds.
Sign up here to check out our exclusive collection of traceable diamonds and receive regular updates about diamond trends and more.
Download our hk.co app on multiple platforms, including Android and iOS.
