An Interesting Use Of Blockchain Technology By Everledger

Organizations have started using bitcoin blockchain for fighting with fraud. They are starting with diamonds that will be expanded to all types of luxury items like fine arts, expensive watches etc. High-value things that can be easily lost or tampered will be registered on blockchain.

The blockchain is a public ledger for keeping a track of a record of ownership of a work of art or anything valuable in such a way that is stronger and accessible than a piece of paper.

Each diamond can’t be unchangeably connected to the inflexible digital ledger because there will always be a possibility for stones to be reshaped or cut that can affect serialized IDs. Everledger digitizes a host of data point about every diamond to create a multi-layered digital fingerprint.

If somebody has a 7 carat diamond, Everledger just doesn’t capture the serial number that is on the diamond, but also the 4 Cs (clarity, cut etc). They just don’t capture it but also take the 40 metadata points that complete diamonds. The diamonds are effectively digitized after the inspection by the laboratory houses.  

The best use case for blockchain is certainly when there is an inflexible ID on a device that can’t be modified and it is sitting within an inflexible ledger.

Diamond is a billion dollar issue in all over the world it terms of fraud and document modification. Everledger  now has approx 280,000 stones entrenched and digitized into the blockchain.

The main point is, diamond stones don’t depreciate in terms of value. So a diamond stone that was stolen and found years after would still be an asset to its insurance company owner. And that will be one of the use cases too.

The third target is giant online retail marketplaces where dealers may try to sell stolen or tampered things.

Diamond could be an initial stage, Everledger will go beyond this to use blockchain. Blockchain will be later used for high-value and luxury products.