Blockchains Are Forever: DLT Makes Diamond Industry More Transparent

May 13, 2022 | Wahid Pessarlay
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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.  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.

Leanne Kemp, CEO of independent technology company EverLedger, stressed the need for blockchain integration in the industry to improve the tracking of a stone’s provenance. This is primarily aimed at suppressing the sales of “conflict diamonds.” Some instances of the unethical utilization of blood diamonds were evident in the 1990s in countries such as the Democratic Republic of Congo, Angola and Sierra Leone. Evidence proved that these diamonds were mined and used to purchase arms and ammunition for military and paramilitary movements.Aside from the sale of diamonds to fuel conflict, numerous reports of unscrupulous labor tactics used to exploit workers in mining sites have surfaced. Child labor also appears to be prevalent in the majority of these areas.

The idea of integrating blockchain into the industry — which was only introduced in recent years — is likely to reawaken mainstream interest and further improve global production. Diamond mining corporation De Beers Group has pointed out the potential of blockchain in the industry for increased accuracy, trust and transparency with regard to determining a diamond’s origin.