IBM Launches Blockchain for Diamonds and Metals

RAPAPORT... IBM has partnered with members of the diamond and jewelryindustry to create a blockchain platform for improving traceability.The technology giant will work with retailer HelzbergDiamonds and jewelry manufacturer Richline Group - both subsidiaries of WarrenBuffett's Berkshire Hathaway - to launch the "Trust Chain Initiative." Other members of the consortium are Asahi Refining andLeachGarner - which refine and supply precious metals, respectively - and UL, athird-party product-verification group.TrustChain tracks and authenticates diamonds and preciousmetals throughout the supply chain, all the way to the finished jewelry piece. Itwill initially track six styles of diamond-and-gold engagement rings on theblockchain, with those products becoming available to consumers inparticipating retail stores by the end of 2018, IBM said in a statement Thursday.Some 66% of consumers globally are willing to spend more to support sustainablebrands, IBM noted, citing a 2015 survey by the Nielsen Company."TrustChain is an example of how blockchain istransforming industries through transparency and viable new business modelsthat specifically benefit the consumer," said Bridget van Kralingen, seniorvice president for global industries, platforms and blockchain at IBM. "Consumerscare deeply about the quality and source of the jewelry they purchase."The IBM Blockchain Platform will power the initiative,which will operate on the IBM Cloud. A blockchain is an unchangeable digitalledger of transactions that enables companies with access to the system to obtaintrusted data."TrustChain is the first blockchain of its kind withinour industry, designed as a solution that marries IBM's leading blockchaintechnology with responsible sourcing, verification and governance by third-partyorganizations, led by UL as the administrator," said Mark Hanna, Richline's chief marketing officer.