A stroke of Belgian brilliance: The companies ITraceIT and Logion have developed a joint tracking solution to legally record and document each stage of a diamond’s life.
Coming from the country that is home to the world center of the rough and polished diamond trade, it was natural to expect an exemplary display. The jewelry industry is often singled out for its lack of transparency, governance or sustainability.
These turbulent times due to wars at the gates of Europe and the Mediterranean revive the notion of war diamonds, a symbol of the violation of human rights. However, unlike other products whose supply chain is completely delimited, from the farm to the plate, from the assembly plant to the private garage, in the case of diamonds, there is still no traceability from the mine to the jeweler.
Although the issue of traceability in the sector and possible sanctions is not new, with Russian diamonds in the spotlight, G7 leaders have been searching since May for a tool to more effectively control this trade.
The De Croo government recently mentioned a blockchain-based solution, while the World Diamond Council expressed its preference for the certification system still based on the paper trail (Kimberley Process, 2003).
Even considered unforgeable, the paper certificate constitutes a system based on trust and whose solidity depends on the weakest link, Hans Merket, researcher at the International Peace Information Service (IPIS), reminded RTBF.
“A Strong Letter in Court”
The Belgian company ITraceIT, which aims to be the first tracking tool that centralizes all the data relating to the trajectory of a diamond, has developed a true digital passport: its software collects all the testimonies, photographs or videos of the precious stone in its raw state, purchase invoices, transportation. receipts and other certificates.
Without a doubt, this achievement is only possible if all actors in the value chain play within the rules, although the technological solution built by the Hennuyère company would reinforce validity and authenticity of the information.
“We were the first company to map every stage of a diamond’s life using a single passport. Thanks to Logion’s public blockchain technology, we are now adding the ability to legally record and document all of these steps,” says Frederik Degryse, CEO of ITraceIT. “This legal seal is neutral but conclusive in a court of law. Thus, our passport responds to the economic reality that the G7 is creating today in the diamond sector.”
With their complementary approaches, ITraceIT and Logion seemed like a natural fit. It was through the financial arm of the Walloon government, the Wallonie Entreprendre investment fund (formerly W.IN.G), that this first “blockchain legal passport” for the diamond industry was born.
The Blockchain that Legalizes Tokens
The Logion company has been carrying out an innovative project for two years that usually stands out in a cryptographic ecosystem where purists opt for disintermediation. In fact, it has created a decentralized public network in which “legal officials” (lawyers, bailiffs, notaries) intervene to confer “proof of law” to the tokens, transforming them into legal digital assets.
Logion issues a blockchain certificate, confidentially collecting all the necessary data and carrying out, with its network of legal professionals, the necessary verifications. Thus, the platform guarantees the legitimacy and opposability of the tokens, bridging the gap between the digital and physical domains.
In short, it is a first commercial solution already adapted to the new traceability protocol that the G7 intends to impose on the diamond sector starting next year.
By Leonardo Pérez
