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Building auditable and trusted origins of diamond access: A blockchain based case study

Jagruti Bagul, Bhavyang Dave

Abstract


Nowadays there are lots of new technologies that come and explore different fields. Recently the industry explores blockchain technology-based applications and tries to develop them. Because blockchain provides security without interacting with third parties. So, Trust and Verification are the most important benefits of this technology. Blockchain technology is developing technology but in recent years there has been lots of development happening. And now this technology can transform the industry robustly as it presents new features like e smart contracts, tokenization of content, eliminating counterfeit products, supply chain improvement, digital twins, and end-to- end security. In recent years, blockchain has been used in the financial sector and also to do secure business. One of the risky and need to secure business industries is the diamond industry. The diamond industry is one of the industries where a consumer is the main stakeholder and needs to create trust between two parties. The diamond industry has huge potential to invest a huge amount of money but there are some issues, which hamper the process of the diamond industry like trust and ethics. There is a lot of fraud reporting happening in this field. Traditionally, the document-based record has happened so it is very hard to trace the diamond’s true origin and providence. Also, the consumer asked questions regarding the diamond-like Where did the diamond come from? Was it a blood diamond? Who owns it? Who bought it? Where is it now? Also, the consumer doubts the diamond whether it’s real and what is the market value and all. So, blockchain develops a Trust chain between them to reduce the gap between the diamond industry and consumers. It will also be useful against fraud and property rights. Using Blockchain technology consumers may be confident that the gem they have purchased is legitimate and also property rights as well. So nowadays many supply chains have been developed based on the requirement. So, for consumer utility, blockchain technology proposed diamond authentication and certification. IBM also plans to use blockchain technology to bring trans- parency to the jewelry industry. There is also a big diamond organization like Everledger that has already developed a model using blockchain for the diamond industry. In this paper, we will discuss how blockchain technology revolutionized the diamond industry. Then, we discuss issues of the blockchain industry based on the literature review, suggest the flow of how blockchain is used in the diamond industry, and its countermeasure. And also discuss the challenges.

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