August 2016

Like? Share!

Blockchain Technology: New Diamond Security

Diamonds are entering the new tech savvy era. So where do diamonds and technology meet? The diamond industry has long faced problems with reporting the origins of a diamond, and authenticating its ID and grading. Traditionally documented on paper, it has at times been difficult to trace the diamond’s true origins and providence. The new blockchain technology is slowly making its way into the diamond industry to help solve this issue.

Blockchain technology uses cryptography in order to keep secure and accurate records of every transaction that occurs through any process of an event on any network. Once a transaction occurs, it gets added to the history and cannot be removed or edited, without multiple checks. This technology is currently used most prominently in Bitcoin currency.

Blockchain Technology: Updating the Records

 Although it may be a new concept to many, diamonds and technology actually mix quite well. Blockchain technology will help to reduce industry fraud, as well as to put a stop to concerns over blood diamonds. By creating transparency in the industry through easy access to all documentation, secure history of events, real-time updating and multi-source approval on updates or changes, fraud can eventually be obliterated. This news should be cause for celebration in the industry. A 2012 study from the Association of British Insurers shows that nearly 65% of fraudulent claims go undetected, costing insurance companies two billion pounds annually. A large portion of this amount comes from the diamond industry. Everledger, the company leading the blockchain technology movement, believes that creating a digital fingerprint that documents the trail of ownership, including all processes the diamond has undergone during its lifespan, will revolutionize the entire industry.

The Potential Outlook

Obviously the process is not simple. It requires getting all the players along the diamond pipeline, from manufacturers and traders, to gem labs, retailers and insurers, to adopt the concept and practice of blockchain technology. But once accomplished, the potential is unlimited. Aside from helping in the fight to quash the blood diamond business, it can also prevent diamonds from being sold for heavily inflated prices at a later point in time. This is due to the fact that blockchain technology has documented the entire diamond history, including the 4Cs, and perhaps even the diamond story. Blockchain technology will capture the diamonds origins, every owner of the diamond over the course of its history, its inscribed serial number, the cut, clarity, color and carat ratings, and also, the diamond’s  40 metadata points, including the angles, cuts, pavilions and more.


In addition, online retailers like eBay and Amazon would be able to vet the inventory sold on their sites, as would, eventually, consumers. And the vintage diamond market could benefit from the digital fingerprint made through the use of blockchain technology, due to the fact that the entire life history of a diamond would be readily available.

Diamond Investment: The Financial Aspect

On a different note, thanks to a turbulent financial economy, regular investments are often failing to make investors any money, and accounts are earning little, if any, interest at all. Therefore, investors are looking into alternatives in order to earn money. Many are investing more and more in diamonds. These investors don’t look at diamonds as a jewel, but merely as a way to earn money, as a secure asset with a resale value above what they would earn with a regular investment. The rise of the diamond fund, which allows investors to pool their resources into the purchase of a larger diamond, so that they won a portion of the diamond as an investment, has become immensely popular.

Often brick and mortar retailers view technology as an intrusion into their business, creating a new and difficult arena for them to understand and work with. However, with blockchain technology and diamond funds as a new source of profit in the diamond industry, technology is currently proving that it could well be a diamond’s new best friend.

Subscribe to the Diamond Blog

Get the latest technology, grading and retail news straight from the source, straight to your inbox.


The State of the Diamond Industry in 2019: Challenges & Opportunities

Today, the diamond industry is more complex and dynamic than ever, and technology has only deepened the challenges faced by industry players at every stage of the diamond pipeline. At Sarine, our technologies scanned more than 70 million diamonds in 2018, enabling us to take a broad consideration of the changes happening now in the […]

3 Retail Technologies & Trends that are Changing the Consumer Experience

Recent years have seen a spike in the number of retail stores that are closing down. In 2017, there was a record-setting estimate of approximately 102 million square feet of retail space that went out of business. Retailers worldwide are facing significant challenges, and the main culprit is the internet. We live in a world that […]

The Sarine Diamond Journey™ Provenance Report Goes to Africa

Recently, it was announced that a leading diamond manufacturer in Africa, Schachter & Namdar, has adopted the Sarine Diamond Journey™ provenance reports for its two exclusive diamond brands – Brilliant Rose and Proudly South African. This announcement comes at a time when diamond traceability and provenance are the fastest-growing issues in the diamond industry. Today, […]

5 Diamond & Jewelry Trends for 2019

We’re already well into the year, but 2019 is shaping up to be a bold one in diamonds and jewelry. Designers are pushing the envelope with new, creative styles, and reaching back to revive retro trends. Whether it’s a new fancy diamond shape, an engagement ring worn on the pinky, or a chunky chain of […]

SPECTRUM – Diamond Industry News #28

Love is in the air in this edition of SPECTRUM, Sarine’s monthly roundup of diamond industry news and trends. This week, we are celebrating Valentine’s Day with a great piece about how to choose the perfect engagement ring from Good Morning America, and a showcase of 15 gorgeous Valentine’s jewelry gifts, compiled by Business Insider. […]

The History and Future of Lab Grown Diamonds

In 2015, photographer Dillon Marsh undertook a fascinating project to demonstrate visually just how much natural diamond has been extracted from a diamond mine during its entire lifetime. In one dramatic example, a photo of the Kimberley mine in South Africa – also known as the “Big Hole” – is juxtaposed with a CGI rendered […]

The Importance of Diamond Provenance in a Data-Driven Age

In breaking the frontiers of the diamond industry, from manufacturing to retail, technology must strive to reach beyond what it can do today, to the potential of what it can achieve tomorrow. At the same time, technological development that brings true change must be in lock-step with the state of the industry at the current […]

3 Ways Artificial Intelligence Affects Your Life (That You May Not Be Aware Of)

What is “artificial intelligence”? Since the very beginnings of computerization, the concept of artificial intelligence has captured the imaginations of science fiction writers and movie makers. Today, fantasy is already reality, and artificial intelligence, or AI, is implemented in a wide range of everyday applications and devices. As the technology becomes more sophisticated, and as […]

How Technology Has Advanced the Diamond Industry: Sarine Celebrates 30 Years

This year, Sarine is launching celebrations for 30 years in the diamond technology business. When Sarine was established, in the late 1980s, technology in the diamond industry was in its very earliest stages. The kinds of technologies used today by diamond manufacturers and gem labs all over the world, such as inclusion mapping, automated rough […]

How Diamonds Are Produced

After the long natural formation process deep in the earth, the diamond is extracted from the mine in its rough, raw state, and begins on its next journey – to become a polished diamond.   From mine, to jewelry store, to the engagement ring finger of its eventual owner – every diamond undergoes a long […]