Luxury goods giant celebrate milestone in efforts for blockchain diamond traceability
After announcing a collaboration to improve sustainability and traceability in diamond supply chains using blockchain last year, a coalition of luxury goods giants has chosen a partner business to deliver the necessary digital technologies.
The Aura Blockchain Consortium was set up last year by Prada Group, Cartier, Moet Hennessy Louis Vuitton (LVMH) and OTB Group. LVMH’s watch and jewellery brands include Tiffany & Co and Tag Heuer. OTB Group’s brands include Diesel, Maison Margiela, Marni and Viktor&Rolf.
The aim of the Consortium is to develop and disseminate blockchain solutions and technologies that enable better traceability across luxury supply chains, with a starting focus on diamonds. It operates as a not-for-profit organisation, with businesses participating in a non-competitive manner. Blockchain can help to improve supply chain traceability by creating a tamper-proof digital ledger, storing information about a product or material’s journey. Information can be input on a range of factors relating to environmental and social sustainability.
This week, the Consortium has confirmed that Sarine Technologies will be participating. Sarine will be providing the tech-based traceability solutions needed to trace diamonds across the supply chain, from extraction, to polishing, to setting, to retail. The platform does not permit the input of any information that is not verified by a third party, or otherwise verifiable.
Sarine also produces technologies that enable the laser-cutting, shaping, laser-marking and grading of diamonds, meaning that it has connections with many of the jewel industry’s producers and polishers already
The Aura Blockchain Consortium’s secretary-general Daniela Ott said: “This new solution will provide complete transparency on product sourcing history and verifiable authenticity documentation, which is key to strengthening consumer trust in brands and fostering a long-term relationship, which is critical in today’s rapidly evolving retail landscape. We anticipate additional leading luxury brands will soon be joining our unique consortium.”
Blockchain is being trialled and scaled in the name of improved supply chain traceability and sustainability in a range of sectors, including beauty and cosmetics, electric vehicle (EV) manufacturing and food and beverages.
In the jewel space specifically, thought leaders had predicted that Russia’s invasion of Ukraine would prompt an increase in demand for blockchain-tracked diamonds. Russia is a leading supplier of diamonds but nations, businesses and individual buyers are, understandably, seeking to shun Russian diamonds.