Verify natural diamonds with blockchain

Moscow: To authorise and verify and trace natural diamonds, researchers have developed a new method with the aid of blockchain technology.

Natural, synthetic and fake stones exist in the diamond market, the system could protect the financial assets of market participants, said researchers from the National University of Science and Technology in Russia and added, “The modern diamond industry is undergoing a period of global restructuring.”

As modern synthetic diamonds are as good as the natural ones with respect to quality and chemical composition, expertsin the field cannot recognise the natural ones from the lot. Considering the growing market and multiple possible diamond sources, authorising becomes a challenge which can be done through blockchain technology.

It is a growing list of records, known as blocks, are connected using cryptography. Every block has a cryptographic hash of the previous unit, time-stamp and transaction data.

The concept, developed by Russian cryptographs and members of the Russian startup, is a one-of-a-kind system that can be utilised for tracing natural diamonds. The system can furnish details on the entire history of transfer of stones’ rights, beginning from the time it is mined and the researchers state that is it impossible to falsify the records.

“We offered a digital blockchain-based certificate for each natural stone,” said Alexey Dimitrienko, one of the startup founders, leading expert of the National University of Science and Technology.

“The technology will ensure the reliability of the history and authenticity of the stone through the use of the blockchain as a special mechanism for storing information. “Also, it will increase the added value of the diamond as a financial asset, as well,” Dimitrienko said.

The development team plans to launch a security token offering within one year.