30 Sep. 2018
Investing in block chain tehnology
Ability to track the provenance of such commodities as diamonds is important “to keep blood diamonds – those mined in war zones and used to finance conflict – off the world market” (How to Put).
A relatively new technology, blockchain, is a digital ledger where all the data and transactions are permanently and securely recorded without “control of any third party” (Holotescu, Rogers). According to Rodgers, the data on the blckchain can be amended only if all authorized stakeholders agree to do so, which makes the platform to be considered “as a secure, verifiable and highly transparent”. Paul Armstrong (qtd. in Rogers) states that “Blockchain… gives you the opportunity to verify the identities of sellers or the authenticity of products, which could be huge for the luxury goods market…” When it comes to such expensive goods as gold and diamonds, it is not only important to know their origin, it is equally essential to be able to track their exact location considering the seasonality of purchases and multiple locations they are sourced from. Starup Everledger has already applied blockchain technology to track each diamonds’ history by creating a digital thumbprint and storing it in secured network, which can’t be modified. (How to Put). According to the company, it has uploaded serial numbers and distinctive characteristics of over 2 million diamonds (Working). “As the diamond changes hands, details are appended to the chain, rather like the chain-of-custody protocol used in law enforcement for evidence in court cases – you know where it’s been, who’s touched it and where it is at all times. You know its provenance” (How to put). De Beers is another company which, in collaboration with five diamond manufacturers, developed blockchain platform called Tracr, tracking history of 100 high-value diamonds. (Sissman, Sharma, Working).
The blockchain technology would allow to check the source and the history of diamond
“How to Put the Bad Guys Out of Business with Blockchain.”ProQuest, Jan 22, 2018, http://libaccess.senecacollege.ca/login?url=https://search-proquest-com.libaccess.senecacollege.ca/docview/1992115266?accountid=28610.
Holotescu, Carmen. Understanding Blockchain Opportunities and Challenges, vol. 4, “Carol I” National Defence University, Bucharest, 2018. ProQuest, http://libaccess.senecacollege.ca/login?url=https://search-proquest-com.libaccess.senecacollege.ca/docview/2038220973?accountid=28610, doi:http://dx.doi.org.libaccess.senecacollege.ca/10.12753/2066-026X-18-253.
Rogers, Charlotte. “Why Marketers Need to Get to Grips with Blockchain.”Marketing Week (Online), Apr 05, 2017. ProQuest, http://libaccess.senecacollege.ca/login?url=https://search-proquest-com.libaccess.senecacollege.ca/docview/1884338795?accountid=28610.
“Working on the Blockchain: 4 Projects that could Disrupt Industries and Nonprofits.” Barron’s 98.34 (2018): 19. ProQuest. Web. 30 Sep. 2018.
Sissman, Maxwell, and Kashni Sharma. “Building Supply Management with Blockchain.” ISE ; Industrial and Systems Engineering at Work 50.7 (2018): 43-6. ProQuest. Web. 30 Sep. 2018.