Everledger brings blockchain tech to fight against diamond theft

Diamonds have an unlikely new best friend – the blockchain. London startup Everledger is using the technology behind bitcoin to tackle the industry’s expensive fraud and theft problem. Or as CEO Leanne Kemp describes it, “putting bling on the blockchain”.

According to a 2012 study from the Association of British Insurers, around 65% of fraudulent claims go undetected, at an expense of £2bn to insurance companies annually.

Diamonds play a key part in this, Kemp said: “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!’.”

Until now, however, there hasn’t been a surefire way to detect if a diamond has been stolen. Like other luxury goods, proof of ownership remains locked in paper, which is vulnerable to tampering and loss. But, what if diamonds could be digitised? Well, Everledger, led by self-described “super nerd” Kemp, is doing just this, with a tamper-proof digital ledger of the world’s most valuable stones. The idea for the company, she said, was sketched on the back of a beer mat just…

Read the full article written by Grace Caffyn on CoinDesk

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