All industries are testing blockchain technology in one or another way. And diamond mining companies are not left behind. A Canadian diamond mining company, Lucara Diamond Corp, has purchased a blockchain diamond tracking firm known as Clara Diamond Solutions. With this bought, Lucara becomes the latest player in the industry adopting blockchain technology.
Diamonds in the Blockchain
Blockchain technology has given the possibility to several enterprises to have more transparent operations and processes. The diamond industry was one of these markets where the information is opaque and tends not to be transparent. With blockchain technology the diamond market may receive an important transparency boost, increasing sales and customers’ trust.
Other diamond companies that are using blockchain technologies are De Beers and Alrosa PJSC. Lucara is operating a Diamond mine in Botswana. The company has discovered in 2016, 1,109-carat stone, the biggest diamond found in more than a hundred years.
The company has paid $29 million dollars’ worth of stock in order to proceed with the purchase of Clara Diamond Solutions. In this way, Lucara is able to use all the services offered by Clara. Clara is not only offering different blockchain powered-solutions to the diamond industry but it also offers a marketplace for diamonds that manufacturers can buy.
According to Lukas Lundin, chairman of Lucara, the purchase of Clara helps modernizing the diamond supply chain and provides a greater value for participants in the market. He has also commented that there are limitless potential benefits by using Clara’s platform in the Lucara diamond value chain.
Other enterprises that are using blockchain technology to improve global supply chains are IBM and Maersk. These two companies have decided to work together in order to offer blockchain solutions to and improve the supply chain. With this implementation, transactions are recorded, and different processes are simplified, improving transparency in the overall supply chain.
As the diamond industry was operating with several layers of secrecy, this new purchase will allow the market to have a better and more accurate information by making the diamond production process more transparent and clear.