The first blockchain for all the gems and jewellery.
Blockchain is a technology that is revolutionising transactions. It digitally records individual peer-to-peer transactions, creating a virtual ledger secured through cryptography, distributed and accessible to each participant. The main benefits of this digital ledger are high transparency, security and speed.
This makes blockchain technology an incredibly interesting tool for improving traceability throughout the supply chain. For example, with the adoption of blockchain technology in the gems and jewellery industry, this digital ledger can offer a permanent, tamper-proof record that traces a gem's journey, from the mine to the end-consumer and even beyond.
To design and build the required technical backbones of Provenance Proof Blockchain, Provenance Proof has partnered with Everledger, a leading expert in tracing the provenance of high-value assets using blockchain technology.
Blockchain technology works as follow: Whenever a transaction occurs, it is validated within the ecosystem of the so-called blockchain. Once verified, a transaction is recorded as a digital block, containing the key to the previous entry, a timestamp and the transaction data, all secured through cryptography. Any further transaction is secured in the same way by creating a new block with a new key linked to the previous block. This creates a chain of individual transactions that can be traced back to the original. These blocks become part of a digital ledger, which is continuously distributed to all participants.
This concept of distribution and verification is considered to be resistant to data loss, modification or fraud.
Provenance Proof Blockchain focuses on building a platform that uses this process to create a digital ledger tracing a gem's lifetime journey. Every step or transaction which adds value to the gem will be recorded within this digital ledger. At any stage, only the party who physically holds the gem will be able to consult its history and add a new chapter to it.
Any stakeholder, such as miner, wholesaler, jeweller, cutter or gem lab will be able to join the blockchain easily and in most cases for free with a simple one-time online registration. In principle, only internet access via smartphone or PC and basic gemmological tools such as a scale and measuring devices are required.
However, despite its immutable traits and ensuring the integrity of its data, it is advised to deploy other technologies to complement such a digital tracing solution. One good example is our Physical Tracers.
Blockchain technology is built to improve the data integrity of a gem or jewellery to the highest standards. By design, blockchain is inherently resistant to the modification of data. The blockchain's encrypted and decentralised nature minimises the risk of an unauthorised change of blockchain data, which can trigger a halt of the respective chain in the event of an attempt to tamper data.
However, blockchain technology can maintain data integrity, but not its honesty and authenticity. Blockchain technology alone cannot ensure that the stone described in the blockchain as being mined responsibly is indeed mined responsibly. For example, it cannot guarantee that the Colombian emerald described in the ledger is indeed from Colombia or if it is even an emerald. Besides that, a stone can get swapped along its way from the mine to the end consumer, a process that can get utterly unnoticed by the digital logbook that travels alongside the gem.
Hence, we must manage our expectations regarding the capability of blockchain technology to ensure the integrity of the gem. Nevertheless, the blockchain adds confidence to your purchase. The transparency granted to the supply chain will make it more difficult for fraudsters in the long run, as they leave a pattern that can be traced, which can help identify a cheater. A more immediate and robust way to get confidence in the integrity and authenticity of a gem is to combine the digital traceability of the blockchain with Physical Tracers. Physical Tracers containing provenance-specific information are inserted into or attached to a rough crystal at the source and remain with the stone all along the value chain and throughout their lifetime. The Emerald Paternity Test is one good example that perfectly complements the digital traceability of blockchain technology by boosting its resistance against an undisclosed alteration or swap of stones.
Provenance Proof Blockchain is an open platform that welcomes everyone who embraces the value of transparency and accepts the terms of use. However, we are obligated to check the legitimacy of the companies and individuals using this platform. i.e. perform certain KYC checks that are standard in the industry. This legitimacy check comprises a background inquiry that aims to identify counterparties with a problematic track record, i.e. mentioned in sanction, watch, regulatory, and law enforcement lists. The background check applied for Provenance Proof taps hundreds of public records locally, nationally, and internationally.
Once the background check is passed, and after signing the Code of Conduct and the Terms & Conditions, the new participant is a registered user of the Provenance Proof Blockchain and can start using its services.
No. Access to the blockchain is granted for everyone who has accepted the Terms & Conditions. Still, visibility into the history of a specific gem is granted only to those who own the stone or have the custodianship of the stone. The visibility is only granted during the time this specific gem is in their ownership or custodianship. Once the gem is passed on to the next stakeholder, the exclusive right to see the existing blockchain data is also handed over to this person or company, so is the permission to write the next chapter in the logbook of that specific gem.
The Gübelin Gem Lab and Gübelin AG have no privileged insight into the data of Provenance Proof Blockchain. Like other participants, the Gübelin Gem Lab and Gübelin AG can only access the stone's data when they have the ownership or custodianship of the stone.
Everledger has provided us with the report of an independent audit company that has scrutinised the source code of Everledger and the underlying Hyperledger operating system. This report confirms that no backdoor access exists and that no unauthorised party can access the information on the Provenance Proof Blockchain.
No, Provenance Proof Blockchain does not show any prices or values of the gems.
The main purpose of the Provenance Proof Blockchain is to provide transparency for the final customer into the lifetime journey of a gem from its source to a finished piece of jewellery.
In short, whoever holds the stone will only have the upstream visibility into the past journey of the stone, which means a stakeholder in the past will not have the power to see to which client the stone was sold to at the end.
Provenance Proof Blockchain is built for all kinds of gems. There are no restrictions on the type of gems. Gems can be added onto the blockchain either in bulk or individually.
Provenance Proof Blockchain is open for any stakeholder along the supply chain and value chain of a gem in the gems and jewellery industry, regardless of its size.
The registration process is simple, with only a smartphone connected to the Internet is required. While the data needed to complete the registration is also very basic, as you can see on the Sign-Up page.
For large companies, there is the option to develop custom-built interfaces with their databases and ERP systems, facilitating an automated and efficient data feed in the Provenance Proof Blockchain. An integral part of the registration process is a Code of Conduct which every user must agree to. It obliges the users of Provenance Proof Blockchain to comply with the rules, such as being honest about the nature, provenance, and properties of the gems they put on the blockchain and the identity, values, and standards they pursue and comply with as a company. Furthermore, every company or individual that completes the registration process is subject to a background check.
Provenance Proof Blockchain is fundamentally free of charge for all the stakeholders in the gems and jewellery industry. Stakeholders who want to contribute transparency to the industry can easily sign up.
However, charges are applied for additional features, such as the ability to print out the Statements of Provenance for their gems on Provenance Proof Blockchain or APIs for users who have lots of assets to upload onto the platform.
The Provenance Proof Blockchain was designed and built also to cater the needs of small-scale participants of the gems and jewellery industry.
While building the user interface, we kept all the small members from the industry like artisanal miners, small-scale mining cooperatives, small-scale dealers, independent designers, and retailers in mind. Hence, small members can easily access Provenance Proof Blockchain and its features with any mobile device connected to the Internet, even in remote areas.
Passing a gemstone to the next owner without transferring the digital twin is interrupting the chain. In this case, the blockchain comes to an end, leading to the traceable and verifiable history of the stone cannot be maintained. Unfortunately, this also means losing value for the new owner and all the subsequent owners. On the bright side, we offer a solution by re-linking the digital asset to the current stone owner again, which of course the break will be documented for security reasons.
Blockchains are coming under public scrutiny for the amount of energy they consume. As a matter of fact, this criticism refers mainly to the immense energy required to mine new cryptocurrencies such as bitcoins based on the proof-of-work concept. On the other hand, Provenance Proof Blockchain as a permission-based decentralised ledger used for tracing goods with no cryptocurrencies integrated requires only a fraction of the energy for data handling compared to the mining of cryptocurrencies.
No. The access to the Provenance Proof Blockchain and other Provenance Proof services such as the Emerald Paternity Test are not attached to any services of the Gübelin Gem Lab or Gübelin business. On that note, we treat all laboratories the same way.
Provenance Proof Blockchain and Physical Tracers like the Emerald Paternity Test are two individual services offered by Provenance Proof. Provenance Proof Blockchain is a platform that can be used for any type of gem. Physical Tracers are a kind of tracing technology applicable on emeralds for the time being and possibly some other gems like diamonds, opals, and pearls.
The combination of physical tracing and digital tracing provides the highest level of traceable transparency. Hence, it is highly recommended to use both Provenance Proof Blockchain and Physical Tracers in combination whenever possible. For other gems, Provenance Proof Blockchain is used as a stand-alone service.
No. Provenance Proof Blockchain can be used as a stand-alone service for any kind of gem. A gem does not require a Physical Tracer to enter Provenance Proof Blockchain.
