Blood diamond, can Blockchain stop the bleeding


Conflict or “blood” diamonds are traded illegally to fund conflict in war-torn areas, central and western Africa in particular, according to the World Diamond Council, which represents the commercial diamond trade.

The United Nations defines conflict diamonds as “…diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments, or in contravention of the decisions of the Security Council.”

Blood diamonds are generally in “rough” form which means they just have been extracted and not yet cut, polish to be in the form that we normally see.

At the peak of the civil war in Sierra Leone, blood diamonds estimated to represented around four percent of the world’s diamond production.

Beside countless innocents who live in the war zone that the trade of blood diamonds facilitate, thousands of men, women, and children in nations such as Sierra Leone are being abused as slaves for diamond mining. They are forced to work in very harmful conditions, with primitive tools and mining methods like digging into mud or gravel along river banks with bare hands. The material after collected must then be sorted by hands.

People in Sierra Leone forced to mine diamond in cruel condition

However, in May 2000, a meeting between Southern African diamond-producing states took place in Kimberley, South Africa. This purpose of this meeting was to find a solution to stop blood diamond exchange and to make sure that diamond exchange will not be used to facilitate conflict.

The meeting concluded with an agreement by United Nations, European Union, the governments of 74 countries, the World Diamond Council and a number of interest groups such as Global Witness.

The Kimberley Process with the hope
to stop blood diamond

The Kimberley Process Certification Scheme (KPCS) was created and agreed upon. With this process, members are required to declare that all rough diamond exports are produced were mined and trade legitimately and must not be used to facilitate conflict.

Each diamond shipment must contain a certificate that states the diamond origin, how they were mined, places where they were cut and polished, the parties involved, and their final destination. This means only members of the Kimberley Process can trade with each other.

Nonetheless, according to Amy Barry of Global Witness, the Kimberley Process has yet to show any effectiveness when it comes to stopping blood diamond trade. This is due to a lack of political will among member. In an interview with CNN in 2010, Amy Barry alleging that, despite being a member of the Kimberley Process, Robert Mugabe’s regime has benefited from the sale of blood diamonds and no decisive action has been taken against Zimbabwe.

The blockchain solution

Knowing that blood diamond is still a major problem that affects thousands of lives. A lot of major companies in diamond and IT industry are taking part in this anti-blood diamond movement.

Some of the most notable are De Beers – which responsible for over 30% of the world’s supply of diamonds just announced that it will make the first blockchain ledger for tracing precious stones from where they were mined to where they were sold to buyers. We also have IBM’s TrustChain Initiative, a digital ledger that uses blockchain technology. Its purpose is to confirm to buyers that their diamonds are ethically sourced. However, most of these technologies are still in a very early stage of development with little to no source confirm that it may ever take off.

Fortunately, with the success of GlitzKoin, a new project that aims to serve as a major overhaul in the diamond industry, we may expect a brand new way of diamond trading which is secure, faster and with much more competitive price. Furthermore, every diamond on GlitzKoin will be tracked in very detailed manner, from its origin, its whole journey to the buyer’s hand. And that’s only one feature that GlitzKoin capable of deliver. The project is currently in the public sale period and is being perceived extremely well. I believe that GlitzKoin will success and deliver it’s promises.

GlitzKoin looks to be the major overhaul in
the diamond industry

Find out more about GlitzKoin here:

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