IBM announced today that it was teaming up with a consortium of jewelers to ensure the authenticity and verify origins of gold and diamond jewelry. This collaboration was dubbed ‘TrustChain’ to reflect the key goals of the initiative. TrustChain runs on the IBM blockchain to track and authenticate diamonds and jewelry at all stages of the global supply chain.
According to their blog post, counterfeit products may cost the global economy up to $250 billion annually. The jewelry industry has always been focused on verifying authenticity, and the system put in place today is known as the 4C system, with the 4C’s standing for color, carat, clarity, and cut. The blockchain seems a perfect fit according to them as it verifies the origin and authenticity of jewelry due to its immutability of occurred transactions.
The companies involved in the consortium include Leach Garner, a precious metals supplier, Asahi Refinery, a precious metal refinery, Helzberg, a US jewelry retailer and the Richline Group, a global jewelry manufacturer.
The companies stated that this technology will track six styles of gold and diamond engagement rings and will be available to the public by the end of 2018.
The official website says:
“This collaboration is a tremendous game changer for the jewellery industry based on the transformational effect blockchain will have on the gold and diamond industry. This is collaboration among responsible and ethical organizations across the jewellery industry, supported by governance and guidance.”
The next step in the execution of the partnership, as this is a proof-of-concept, is:
“TrustChain is an open platform and the next stage would be to move to a full trial with a wider set of industry participants.”
As a third party verifier of the authenticity of the jewelry, UL Consumer and Retail Services have been brought in.
A Twitterati, Crypto Frank says:
“Will never happpen. Diamond industry bigger than IBM. You will never eliminate the blood diamond problem coming into the states and rest of the world. Ain’t gonna happen.”
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