De Beers, a diamond mining firm, has opened up the first of its kind blockchain-backed diamond tracking system tool for all companies in the diamond mining sector.
The tool which is built using blockchain technology is known as Tracr, and according to the diamond extracting arm of Anglo American company AAL.L, it would help provide valuable information on diamond gems right from the point of extraction through each point till it gets to the final buyer.
According to the company, Tracr has been in its pilot phase since 2018 and has proven to be a resourceful system which would help eliminate the valid concerns on the source point of mined gems. The system would now be available for use to players in the industry.
Before the launch of Tracr, centralized platforms which have always been in use could not handle huge packets of information, thereby leading to process flow constraints. But with this latest innovation, Tracr is noted to have the capability of inputting up to a million diamond gems each week on the platform due to its decentralized nature.
So now, just as blockchain networks allow for independent node operators, users of Tracr- both companies and individuals would now also hold the permission rights to view a diamond’s origin on the platform and also access tamper-proof information on every stop a gem has had since it was mined since the system cannot be hacked.
De Beers mentioned that the blockchain-powered system has already become operational in all of the company’s global outlets, and right now, about 25% of all the diamond produced in the first three sales for the year 2022 is currently inputted on Tracr.
Blockchain and Disruptive Innovation
The advent of blockchain technology is changing a lot of industries today, and beyond the diamond mining ecosystem as seen in the Tracr platform, a number of disruptive innovations have been integrated into the sports, finance, and supply chain industries respectively.