It appears blockchain technology has a range of uses. Earlier, ForexMinute had reported that Haiti government is going to use blockchain tech for land records, now, the London startup Everledger is using the same tech to tackle the industry’s expensive fraud and theft problem. The CEO Leanne Kemp calls it ‘putting bling on the blockchain.’
In a study the Association of British Insurers claimed in 2012 that around 65% of fraudulent claims go undetected, at an expense of £2bn to insurance companies annually. However, Kemp admits that things will become easy for them once blockchain technology is used for the purpose as it will help them detect whether the diamond was stolen or not.
Leanne Kemp was quoted saying:
Insurers will meet at a conference once a year and say ‘By the way, did you see our diamond fraud has gone through the roof this year?’ and they’re like ‘Hey, so has ours actually – we’ve paid out heaps!’
However, she now thinks that the blockchain could be used to track objects, and of course one of the largest pain points that run through the supply chain is provenance.
Blockchain Technology, Surefire Way to Detect the Loss of Diamond
Now it appears that though there hasn’t been a surefire way to detect if a diamond has been stolen, with blockchain technology it won’t be the situation. If diamonds could be digitized, it will be easier to track the status of the diamond. Everledger, led by self-described “super nerd” Kemp, is digitizing diamonds with a tamper-proof digital ledger.
Kemp says that the idea for the company was sketched on the back of a beer mat just a few weeks prior to Everledger’s three-month stint at the Barclays Accelerator in London, which it finished in June. However, for it to work effectively, Everledger needs to scale for which it has partnered with different institutions across the diamond pipeline.
The company claims that it has partnered with insurers, law enforcement and the 10 diamond certification houses across the world for the purpose. Interestingly, as there hasn’t been a registry of diamonds before, currently the risks aren’t necessarily high for criminals.
Kemp says that as this is a digitized world so the real solution is a globalised ledger that enables complete visibility for multiple insurers, police and multiple stakeholders to see and understand what is transacted around that object.
She hopes that Everledger, literally a stolen registry of diamonds will lead to a reduction in crime by catching offenders and dissuading other criminals from taking these kinds of risks.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org