{"id":1460,"date":"2024-12-11T16:53:59","date_gmt":"2024-12-11T16:53:59","guid":{"rendered":"https:\/\/shivdiamond.hozosmedia.com\/?p=1460"},"modified":"2024-12-11T16:58:09","modified_gmt":"2024-12-11T16:58:09","slug":"the-top-diamond-tracking-programs-and-how-they-work","status":"publish","type":"post","link":"https:\/\/shivdiamond.hozosmedia.com\/?p=1460","title":{"rendered":"The Top Diamond-Tracking Programs and How They Work"},"content":{"rendered":"<p>Technology firms have been tackling the challenge of diamond traceability for many years. Now that interest in tracking systems is growing, tech providers are pushing their solutions, which tend to fall into three categories: systems that match the diamond with a digital twin, those that physically mark or analyze the diamond, and those that compile the verified data declarations that users have uploaded about the diamond to a blockchain ledger.<\/p>\n\n\n<h2 class=\"wp-block-heading\"><strong>The matchmakers<\/strong><\/h2>\n\n\n\n<h1 class=\"wp-block-heading\">Diabot<\/h1>\n\n\n\n<p>Innovseed\u2019s Diabot machines have scanned over three million diamonds since launching two years ago. The machine sorts the rough production by color, weight, shape and fluorescence, and records a \u201cfingerprint\u201d of each diamond based on those properties. It also takes a 3D model using imaging and video in a completely automated process.<\/p>\n\n\n\n<p>Diabot is a rough-to-rough solution, notes Vipul Sutariya, sales and marketing director of Dharmanandan Diamonds, which oversaw the establishment of Innovseed. Scanning takes place at the mine site and again at the manufacturing stage so a match can be made between the two datasets. It is then the manufacturers\u2019 responsibility to track the diamond through cutting, polishing, grading and sale, using either third-party solutions or their own, explains Sutariya, who also serves as Innovseed\u2019s director.<\/p>\n\n\n\n<p>In May, Innovseed unveiled an updated version of Diabot, improving the scanning speed to 3.7 seconds per stone. The new version can handle all sizes, starting with 10-millimeter melee goods. The company is working with blockchain company Everledger and De Beers\u2019 Tracr program, among others, to empower its solutions. Miner&nbsp;<a href=\"https:\/\/rapaport.com\/news\/mountain-province-shifts-to-loss-as-rough-diamond-prices-plummet\/\">Mountain Province Diamonds<\/a>, for example, is using Diabot to scan its production for the Tracr program.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.innovseed.com\/\">Visit Diabot<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><em>Tracr<\/em><\/h2>\n\n\n\n<p>Tracr was developed by De Beers, although it is reportedly seeking to function independently as a nonaffiliated industry platform. Still, it has access to the miner\u2019s production, and a strong link to the company\u2019s manufacturing sightholder clients. Tracr also has partnerships with Sarine and the Gemological Institute of America (GIA) that make it compatible with their programs. There are some 2.6 million rough diamonds and 400,000 polished ones on the platform, according to the company.<\/p>\n\n\n\n<p>\u201cTracr has found the sweet spot for the industry in terms of depth, certainty and scale,\u201d says CEO&nbsp;<a href=\"https:\/\/rapaport.com\/podcasts\/podcast-how-tracr-is-empowering-de-beers-supply-chain\/\">Wesley Tucker<\/a>. \u201cI don\u2019t believe traceability can start [just] anywhere, because the burden of proof will never be enough. This macro trend of [showing the] origin, requiring full provenance traceability, is not going away.\u201d<\/p>\n\n\n\n<p>Tracr tracks and measures companies, facilities and physical diamonds, Tucker explains. Participants must comply with De Beers\u2019 Best Practice Principles (BPP) or be members of the Responsible Jewellery Council (RJC).<\/p>\n\n\n\n<p>The producer records the origin when scanning the stone at the mining stage and uploads a \u201cdigital twin\u201d to the platform. This creates a record of the diamond\u2019s authenticity and provenance.<\/p>\n\n\n\n<p>The rough gets scanned again at the factory, and an algorithm matches this scan with the one from the mine. As it progresses through manufacturing and then changes hands as a polished diamond, each party adds its transaction data to the blockchain, and third-party audits ensure the segregation and integrity of the goods. Finally, the jeweler gains access to the digital asset showing the diamond\u2019s journey.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/shivdiamond.hozosmedia.com\/wp-content\/uploads\/2024\/12\/image.png\" alt=\"\" class=\"wp-image-1464\" srcset=\"https:\/\/shivdiamond.hozosmedia.com\/wp-content\/uploads\/2024\/12\/image.png 1024w, https:\/\/shivdiamond.hozosmedia.com\/wp-content\/uploads\/2024\/12\/image-300x169.png 300w, https:\/\/shivdiamond.hozosmedia.com\/wp-content\/uploads\/2024\/12\/image-768x432.png 768w, https:\/\/shivdiamond.hozosmedia.com\/wp-content\/uploads\/2024\/12\/image-80x45.png 80w, https:\/\/shivdiamond.hozosmedia.com\/wp-content\/uploads\/2024\/12\/image-360x203.png 360w, https:\/\/shivdiamond.hozosmedia.com\/wp-content\/uploads\/2024\/12\/image-373x210.png 373w, https:\/\/shivdiamond.hozosmedia.com\/wp-content\/uploads\/2024\/12\/image-620x349.png 620w, https:\/\/shivdiamond.hozosmedia.com\/wp-content\/uploads\/2024\/12\/image-460x259.png 460w, https:\/\/shivdiamond.hozosmedia.com\/wp-content\/uploads\/2024\/12\/image-365x205.png 365w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><em>Image: Tracr\u2019s process. (Tracr)<\/em><\/p>\n\n\n\n<p>Tracr only scans gem-quality rough above 3-grainers. Because De Beers aggregates all of the rough from its operations in Botswana, Canada, Namibia and South Africa, the company declares the source simply as \u201cDTC.\u201d The aggregated rough gets scanned in Botswana, but De Beers also scans the diamonds at its separate partner trading centers \u2014 a move that makes it possible to disclose the goods\u2019 individual countries of origin, as Tracr reportedly plans to start doing.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.tracr.com\/\">Visit Tracr<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The physical identifiers<\/strong><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><em>Authentia<\/em><\/h2>\n\n\n\n<p>As early as 2012, Bruno Scarselli submitted flawless and internally flawless diamonds to three different grading labs after marking the stones with nanotechnology for identification. The diamonds came back with the same grades as before, demonstrating that the technology could be applied without affecting the stones\u2019 quality, the diamantaire recalls.<\/p>\n\n\n\n<p>While nanotechnology has long been in use across various industries, its application to diamonds is relatively new. In the decade since his test, Scarselli has developed a blockchain program that uses nano-marking as a basis for diamond traceability.<\/p>\n\n\n\n<p>The resulting platform, Authentia, applies the nano-marker at the rough stage and uploads information about the diamond to the blockchain based on legal documents that attest to its origin. The combination of nano-marking and the blockchain record enables a seamless transfer of data authenticating the diamond\u2019s origin as the rough diamond changes hands.<\/p>\n\n\n\n<p>The digital record follows the diamond through cutting, polishing and the rest of the pipeline. Meanwhile, additional nano-marking occurs at the polished stage, providing an immutable way to identify the diamond through the rest of its journey.<\/p>\n\n\n\n<p>The company will produce its own origin certificates and titles of ownership in order to ensure transparency in the diamond industry, Scarselli stresses. Consumers who buy these diamonds will have access to a detailed and permanent record of the diamond\u2019s history, including its origin, certifications and previous owners.<\/p>\n\n\n\n<p>Authentia is working with some 120 alluvial miners in South Africa, Scarselli reports, and recently signed a memorandum of understanding with the South African Diamond Producers Organization (<a href=\"https:\/\/rapaport.com\/analysis\/south-africas-small-scale-diamond-mining-dilemma\/\">SADPO<\/a>) to advance traceability for its members. It did the same with the African Diamond Producers Association (ADPA). Scarselli expects to have some 2.8 million to 3 million carats on the Authentia blockchain by the end of the year.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.authentia.io\/\">Visit Authentia<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><em>Gemological Institute of America (GIA)<\/em><\/h2>\n\n\n\n<p>As a research-based organization, the GIA takes a scientific approach to traceability, explains chief operating officer Pritesh Patel. Under its Diamond Origin program, the GIA assesses the rough diamond and makes the match by analyzing the polished stone when it returns for grading.<\/p>\n\n\n\n<p>Participants in the program \u2014 whether miners, tender houses or manufacturers \u2014 send rough to GIA labs in sealed parcels along with the stones\u2019 Kimberley Process (KP) certificates. The GIA assesses each rough diamond and assigns it an identifying number, noting where it originated. The lab then sends the rough back to the provider, and the diamond goes through manufacturing.<\/p>\n\n\n\n<p>When the stone comes back to the GIA for grading, the lab does an analysis of the polished diamond based on the GIA\u2019s proprietary methods, confirming that the polished stone came from the rough with the associated ID. It then issues a Diamond Origin Report verifying the stone\u2019s country of origin. Other programs can use that information to support their traceability claims.<\/p>\n\n\n\n<p>The GIA also offers its Source Verification Service, which has third-party auditors validate the processes that manufacturers have in place. The auditors look at variables such as how the company traces the diamond, the information it gathers, and its supply chain documents. Once the company has been vetted, it can submit the stone through the service and let the GIA know the diamond\u2019s origin, Patel explains, since the company now has validation that its claims of source verification are trustworthy.<\/p>\n\n\n\n<p><a href=\"https:\/\/discover.gia.edu\/diamond-origin?_ga=2.135107505.1012525014.1723458621-552786262.1717681237\">Visit GIA<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><em>Opsydia<\/em><\/h2>\n\n\n\n<p>Born out of Oxford University research, Opsydia inscribes a unique identifier inside each diamond at the polished stage. The identifier verifies the stone and can link with all the information that various traceability companies collect, explains CEO Andrew Rimmer. The inscription cannot be applied at the rough phase, as it would be lost in cutting and polishing, he notes.<\/p>\n\n\n\n<p>The crucial element of nano-scale inscriptions, according to Rimmer, is that the company can put them inside the diamond without affecting its clarity \u2014 and they are unremovable.<\/p>\n\n\n\n<p>While Opsydia does not have its own traceability blockchain program, its technology supports others, with the mark providing a physical link between the polished stone and its grading report, blockchain record or branded jewelry origin. The company is in discussions with several traceability providers to integrate its technology into their systems.<\/p>\n\n\n\n<p>\u201cWe are technology-agnostic and very happy to integrate with whichever traceability platform the jeweler or manufacturer is using,\u201d Rimmer says. In the near future, Opsydia is planning to launch \u201cviewers\u201d that will enable jewelers to showcase the nano-inscription in the store, verifying the diamond for the consumer.<\/p>\n\n\n\n<p><a href=\"https:\/\/opsydia.com\/diamonds\/\">Visit Opsydia<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><em>Provenance Proof<\/em><\/h2>\n\n\n\n<p>With its origins in colored gemstones, Provenance Proof draws on its groundbreaking work with emeralds. Formerly part of the G\u00fcbelin Gem Lab, the group managed to tag rough emerald crystals with a nanoparticle solution, leaving a permanent invisible mark on the stone without affecting<br>its quality.<\/p>\n\n\n\n<p>Emeralds are distinctive in that they have fractures into which the nanoparticles can be injected, explains Provenance Proof CEO Klemens Link. An independent auditor tags the emeralds with physical tracers at the mine site by \u201cbathing\u201d production in the solution in batches, and the tracers remain intact through the cutting and polishing process.<\/p>\n\n\n\n<p>The same cannot be said for diamonds and other gemstones, however, as they are more compact and lack the fractures characteristic in emeralds. \u201cWe were hesitant to offer the solution for diamonds, because we knew it could only start at the cutting facility,\u201d recalls Link. \u201cBut we soon recognized that offering physical traceability throughout the remaining supply chain is already much more than there is elsewhere on the market.\u201d<\/p>\n\n\n\n<p>Using the same nanoparticle solution it applies to emeralds, Provenance Proof gives jewelers a secure, physical way to trace a polished diamond back to the cutting facility. The company has also expanded its emerald blockchain system to track the marked diamonds. One can enter the rough diamond into the blockchain at the mine and link it to declarations further down the pipeline, Link says, and it easily connects to other blockchain programs.<\/p>\n\n\n\n<p>\u201cInteroperability of the different digital traceability solutions is one of the key things for the industry,\u201d he states.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.provenanceproof.com\/\">Visit Provenance Proof<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The digital compilers<\/strong><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><em>Diatrace<\/em><\/h2>\n\n\n\n<p>Vinit Jogani takes a holistic view when addressing diamond-tracking.<\/p>\n\n\n\n<p>\u201cWe have to ask why we\u2019re doing traceability,\u201d says the director of Diatech, which developed the Diatrace system. \u201cIf the goal is to show the diamond is ethical, ethics go far beyond just saying origin.\u201d<\/p>\n\n\n\n<p>Diatrace encompasses environmental, social and governance (ESG) components in its approach to ethical standards, Jogani explains.<\/p>\n\n\n\n<p>The company has built processes that guide the user in uploading diamond and jewelry data to its blockchain platform. It uses artificial intelligence (AI) to recognize each diamond\u2019s specific characteristics and create an immutable digital record of the stone on the blockchain. The record serves as the diamond\u2019s digital passport, containing its origin and validating its authenticity throughout the supply chain, the company explains.<\/p>\n\n\n\n<p>Data can be uploaded at any point in the diamond\u2019s journey, and the information gets transferred across transactions between stages, Jogani adds.<\/p>\n\n\n\n<p>Diatrace backs up this process via audits, assessing a diamond company\u2019s sustainability and ESG credentials. The audits focus on that company\u2019s environmental footprint, social issues pertaining to the work environment, corporate social responsibility (CSR) practices, and governance.<\/p>\n\n\n\n<p>\u201cWe need to take a step back from the industry\u2019s short-term needs, which emphasize the origin story, and realize what\u2019s really important,\u201d Jogani says. \u201cThe long-term requirement is to preserve the natural diamond brand, which is built on values and trust.\u201d<\/p>\n\n\n\n<p>The current&nbsp;<a href=\"https:\/\/rapaport.com\/diamond-sanctions\/\">sanctions on Russian diamonds<\/a>&nbsp;may or may not motivate companies to adopt traceability measures, but they\u2019ll likely be more willing to consider it if you tell them that doing so will help demonstrate their ethics, he argues.<\/p>\n\n\n\n<p><a href=\"https:\/\/track.diamonds\/\">Visit Diatrace<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><em>Everledger<\/em><\/h2>\n\n\n\n<p>As an industry outsider, Everledger considers itself a pioneer that \u201cpainfully introduced the awakening that traceability is inevitable,\u201d says founder and CEO Leanne Kemp.<\/p>\n\n\n\n<p>That said, she cautions that complete, 100% scientifically proven, full-chain-of-custody traceability isn\u2019t necessarily achievable with current technologies or a single technology. \u201cIt\u2019s crucial to acknowledge the inherent challenges and limitations in the process,\u201d Kemp says. \u201cPerfect traceability remains an aspiration rather than a reality in many cases.\u201d<\/p>\n\n\n\n<p>Everledger\u2019s aim is to provide the best possible information given these constraints, while being transparent about the level of certainty in its traceability claims, she states.<\/p>\n\n\n\n<p>Everledger\u2019s blockchain solution, which launched in 2015, creates an immutable digital ledger that encompasses AI, machine learning, verified credentials, tokenization, blockchain, and the internet of things, Kemp explains.<\/p>\n\n\n\n<p>The company taps several technology providers to upload data about diamonds throughout the value chain. Its approach to matching rough with rough \u2014 at the mine and the manufacturer \u2014 utilizes the available digital representations of the diamond. For rough-to-polished matching, it can link to other providers\u2019 tracing technology, and for polished-to-polished, the Everledger system holds the digital \u201cfingerprint\u201d that manufacturers\u2019 machines have created for the polished diamonds at their facilities, and makes it available for comparison and analysis.<\/p>\n\n\n\n<p>The platform also has a chain-of-custody system that tracks the flow of diamonds through the supply chain by transaction. That includes data such as mining records, KP certificates, import-export documents, and sales invoices.<\/p>\n\n\n\n<p>\u201cOur system makes it easy to verify origin, trace the journey, and record ethical standards alongside measured environmental impacts,\u201d Kemp explains. \u201cThis encompasses value exchange, storytelling, and compliance, as well as fostering a new era of trust and sustainability in global trade.\u201d<\/p>\n\n\n\n<p><a href=\"https:\/\/everledger.io\/industry-solutions\/diamonds\/\">Visit Everledger<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><em>iTraceiT<\/em><\/h2>\n\n\n\n<p>Frederik Degryse draws on his diverse experience within the industry to steer the iTraceiT platform.<br>\u201cOur approach has always been to acknowledge that the diamond supply chain is intricate, with many different types of companies that operate in varying circumstances,\u201d says the iTraceiT CEO.<\/p>\n\n\n\n<p>The challenge is to map out the diamond at every stage, not just at the mine or the manufacturer, he explains \u2014 getting everybody involved and applying it to all diamonds. That includes melee, which many solutions avoid.<\/p>\n\n\n\n<p>The iTraceiT system uses QR codes to access specific information about the diamond on the blockchain. The data collection typically begins at the rough stage, with participating miners or manufacturers uploading details such as the mine name, the KP certificate, and other related documents. Parties can attach additional data and documents at any point along the supply chain, all the way through to the retailer. The user scans the QR code to view these supporting documents, and the company has added an option to provide third-party legal verification that the information is correct.<\/p>\n\n\n\n<p>The platform includes declarations about melee goods, which typically come in mixed parcels consisting of stones from various sources. ITraceiT requires suppliers to declare, \u201cto the best of their knowledge,\u201d the percentage of goods from each source, whether named or unnamed. For the latter, they must disclose the goods as \u201corigin unknown.\u201d<\/p>\n\n\n\n<p>The tracer solution can connect to any system or blockchain, Degryse states. That means if a diamond starts its traceability journey at the mine on another platform but passes on to a manufacturer that uses iTraceiT, the data can be transferred to it. The same is true if the stone sells to a retailer using a different blockchain.<\/p>\n\n\n\n<p>\u201cWe can be the glue between solutions,\u201d Degryse declares. \u201cWhether the information is pushed on the iTraceiT blockchain or another platform is not so important for us.\u201d<\/p>\n\n\n\n<p><a href=\"https:\/\/itraceit.io\/diamonds-and-gemstones\/\">Visit iTraceiT<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p class=\"tx-excerpt\">Technology firms have been tackling the challenge of diamond traceability for many years. Now that interest in tracking systems is growing, tech providers","protected":false},"author":1,"featured_media":1456,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3],"tags":[],"class_list":["post-1460","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-news"],"_links":{"self":[{"href":"https:\/\/shivdiamond.hozosmedia.com\/index.php?rest_route=\/wp\/v2\/posts\/1460","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/shivdiamond.hozosmedia.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shivdiamond.hozosmedia.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shivdiamond.hozosmedia.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/shivdiamond.hozosmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1460"}],"version-history":[{"count":4,"href":"https:\/\/shivdiamond.hozosmedia.com\/index.php?rest_route=\/wp\/v2\/posts\/1460\/revisions"}],"predecessor-version":[{"id":1468,"href":"https:\/\/shivdiamond.hozosmedia.com\/index.php?rest_route=\/wp\/v2\/posts\/1460\/revisions\/1468"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/shivdiamond.hozosmedia.com\/index.php?rest_route=\/wp\/v2\/media\/1456"}],"wp:attachment":[{"href":"https:\/\/shivdiamond.hozosmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shivdiamond.hozosmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shivdiamond.hozosmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}