Russian Startup Develops Blockchain Solution for the Diamond Industry

A Russian startup backed by the country’s education and science ministry has come up with a blockchain-based technology for tracing diamonds’ production and supply chain. According to local news reports, it is also planning a diamond-backed stablecoin.

Blockchain-Tracking the Supply Chain

According to the ministry, the startup, Bitcarat — formed by graduates of prominent local tech schools, the Moscow Institute for Steel and Alloys and the Moscow Energy Institute — is on the way to bringing the technology to the market. The hope is that it would lead to better protection of investors by proving diamonds’ authenticity, though like similar systems it would need some reliable way to marry physical assets to blockchain data in some inseparable way.

“In a situation when natural, synthetic and fake diamonds are circulating in the market side by side, the system will have to protect financial assets of investors and completely guarantee the authenticity of a diamond,” the ministry said in a statement, quoted by Russian news agency TASS.

Bitcarat’s technology facilitates the recording to the blockchain of the entire production and supply chain of diamonds. This includes extraction, cutting and ownership information.

Within a year, the technology is expected to enter commercial operation, said the ministry. However it remains unclear if the agency owns any stake in the company itself. bitsonline.com

Russian Startup Develops Blockchain Solution for the Diamond Industry
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