As is the case with most luxury goods, the diamond industry is faced with the issues of theft, fraud, and counterfeiting. Illegal activity is present at every level of the supply chain, which collectively costs the industry and its insurers hundreds of millions of dollars each year. In recent years, international treaties and regulation have been put in place in an attempt to combat illegal activity, but criminals are most often a step ahead.
Leanne Kemp, CEO of Everledger, joins us to explain how her company is using advanced geological techniques, and blockchains, to bring more traceability to the diamond industry. Everledger, whose clients include many of the largest insurance companies, builds software which allows for a diamond’s unique characteristics to be hashed and notarized in the blockchain. Hence, a stone’s provenance, and the trail of ownership can be traced, therefore limiting the opportunities for fraud and making it difficult for stolen diamonds to re-enter the market.
Topics we discussed in this episode
- Leanne’s background as a technologist
- A broad overview of the diamond industry
- A look at the diamond supply chain
- What roles banks and insurance companies play in the supply chain
- How diamonds are uniquely fingerprinted
- The Kimberly process and other regulations
- Everledger’s technology stack and business model
- Other sectors which can also benefit from increased traceability