The precious stones industry is now relying on blockchain to trace a gem's journey from mining to purchase
As jewellery is gifted by a beloved, or is a family heirloom passed down, these gems glisten with memories and history. However, when the provenance of a piece of jewellery is less than ironclad—as is often the case—its legacy and value can be dampened. Even when gemstones are certified, buyers remain blind to the mining and processing stages.
Investments in precious stones and jewellery have remained a significant and stable asset, but the demand for information is increasing. As with food and fashion, people have become more curious about the origin of jewellery, especially as the industry has been exposed and slandered with negative headlines. Projected to reach US$266.53 billion by 2027, the global jewellery market is increasingly being pressured by consumers who value environmental and social impact, and want full transparency and accountability.
Sustainability-influenced purchases are projected to make up 20 to 30 per cent of fine-jewellery sales by 2025, triple what it was in 2019. Yet, primitive methods have made verifying authenticity and tracing the history of gems and jewellery a challenge. Blockchain has provided an innovative way to capture the flow of reliable information and support the identification of a gemstone’s journey through the value chain.
‘Digi-Twin’ Jewellery
L’Dezen by Payal Shah, is one of the first fine-jewellery brand to launch ‘phygital’ wearables in collaboration with NFT marketplace Digital Twin. Its first auction listed a physical pair of 18k gold Very Peri enamel diamond earrings. Realised at a sale for 3.27 ETH (then worth US$8,205), the NFT holder is now owner of a set of insured diamonds, which can also be digitally imposed onto their profile picture (PFP) of choice. The NFT is bonded with a smart contract on the blockchain during its sale as a way to verify authenticity, as opposed to just a traditional certificate.
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Web3-based utility also appeals to a broader demographic outside traditional jewellery buyers. CyberAnubis is a new Hong Kong-based NFT project that is about to launch in partnership with jewellery company Nyrelle and Greenland Ruby. Each ruby has its own certificate of authenticity and is provided with a stamp from the Greenlandic government. The stones are then set into Nyrelle jewellery, supplemented by information on product origin and ethical manufacturing processes. Tiny markers are embedded within the jewellery piece for holders to scan with their mobile devices to access the certificate of authenticity.
The NFT PFP project makes the gemstone industry accessible, allowing consumers as a collective to buy rough gemstones directly from the mines. “We believe that the future of the fashion and luxury industry are dependent on traceability and community,” says Jai Soni, co-founder of CyberAnubis.
