One of my greatest hopes for Africa is that we begin to use rising technologies to aggressively solve our challenges. I am confident that the continent’s next generation of problem solvers and innovative thinkers will be well prepared to execute personalized solutions. These measures should, in theory, break the cycle of poverty and corruption.
There is no better moment than now to employ developing technologies to solve the long-standing issue of conflict mining in the diamond industry. We could eliminate the immoral and forcible extraction of diamonds and other valuable metals, which is often controlled by rebel forces, by adopting Blockchain. According to several research reports, blood diamonds can earn these rebel forces anywhere from $3 million to $6 million every year. What’s more upsetting is that a lot of the forced labor is done on children and innocent bystanders. Mostly in the Democratic Republic of the Congo, Sierra Leone, Angola, and the Central African Republic.
Blood diamonds can earn these rebels anywhere from $3 million to $6 million every year.
The process of tracing the origins of diamonds has never been simple, and dishonest people have exploited the gaps for hundreds of years.
The good news is that technological advancements over the previous few decades have resulted in more efficient information processing. Blockchain technology, in my opinion, is a proactive method to enforce transparency and confidence in the diamond sector. I’ll show you how below. (If you’re unfamiliar with the technology, this article will give you some background information.)
TrustChain is one of the most prominent systems that come to mind. Unlike many other Blockchains, this one is resistant to a “51 percent majority attack” since every block is signed by a third party. As a result, “Proof of Trust” is ensured.
Getting into a Blockchain
If you’re not sure what that means, it has to do with the question, “Are Blockchains truly unhackable?”
The truth is that hacking any Blockchain is extremely tough. Before the next block is produced, hacking anyone’s block would necessitate hacking every preceding and succeeding block. As the chain of blocks grows, this gets exponentially more complex.
However, this does not rule out the possibility of a hack. If a single or a gang of hackers can compromise the majority of the network’s hash rate to alter transaction history, they can take control of the Blockchain and prevent new transactions from being confirmed. Although such an assault is exceedingly improbable and difficult to carry out, it is comforting to know that systems like TrustChain are designed to totally avoid this risk.
The Kimberley Process has been improved.
The UN’s Kimberley Process was established in 2000 to address the trade in conflict diamonds. The issue is that it is still a paper-based system that is built on certifications and a trading community. Despite the positive intentions of the program, it does not exclude the risk of malevolent behavior within trading communities. What sets Blockchain apart is that technology eliminates any possibility of human corruption or bribery at any level. The system is predicated on trust, with transactions that are open and transparent. No government or system administrator has the authority to issue certificates or change data at random. The purpose of Blockchain architecture is to build a distributed ledger where transactions are historically recorded and safeguarded using powerful cryptography… making it nearly impossible to change current data.
Because diamonds are generated in such a unique way, each transaction would be equally unique. At each touch-point, transactions would record the unique fingerprint of each stone, including its color, carat, and clarity, serial number, and how much each stone was sold for. On the Blockchain, we would be able to track every step of a diamond sale.
Eliminating the Middleman
Diamond suppliers frequently use many intermediaries to transport gems around the world. Accountants, government officials, lawyers, banks, and dealers are just a few examples. When this technology is introduced to the sector, it will imply that intermediaries will play a smaller role in the process, leaving no possibility for mistakes or corruption.
The Future is as gleaming as a diamond.
To summarize, diamond Blockchains are unquestionably a watershed moment in the industry. IBM, De Beers, TrustChain, and Everledger are among the companies that have jumped on the Blockchain bandwagon. If jewelers, individuals, and other significant corporations follow suit, conflict mining may be forced to disappear. This would dramatically diminish the profitability of individuals selling blood diamonds, maybe bringing the blood diamond era to an end.