Hong Kong, 10 August 2018 – ZhongAn Online P&C Insurance Co., Ltd. (“ZhongAn Insurance”), the first internet-based insurer in China, today announced that its wholly-owned subsidiary ZhongAn Technology and ecosystem partner Ediams Technology’s subsidiary Shanghai Diamsledger Information Technology Co., Ltd. (“Diamsledger Technology”) jointly launched the world’s first blockchain diamond traceability and trading platform. By leveraging on ZhongAn Technology’s blockchain anti-counterfeiting and traceability technology, diamonds on the platform will receive a diamond traceability certificate which is a unique global blockchain “electronic ID card”, in addition to conventional certificates such as GIA, NGTC. This certificate contains a record of all the information from diamond mining to trading, giving rise to “double assurance” covering “conventional certificate + electronic ID card” possible.
According to Li Xuefeng, CTO of ZhongAn Technology, the Company will rebuild the diamond supply chain upon Anlink, ZhongAn Technology’s professional cloud service platform, to explore the innovative value in “blockchain + diamond” and speed up the application of blockchain technology in luxury goods such as diamonds. The platform will further integrate the resources along the diamond industry chain, reduce diamond trading costs and increase circulation efficiency through technical means such as image recognition and process automation.
Issue electronic ID cards for diamonds; Buy diamonds with “double assurance”
To protect the legitimate rights and interests of consumers, ZhongAn Technology has applied blockchain technology to the diamond field for the first time, providing consumers with “double assurance” for the genuineness of diamonds. In general, conventional certificates such as GIA and NGTC are mainly records of physical information such as color and place of origin of diamonds, which are relatively standard. Whereas, a diamond traceability certificate track information along the entire process from diamond mining to trading and uploaded to Anlink.
ZhongAn Technology will integrate upstream supply chains, electronic transactions, third-party settlement, quality inspection, logistics and customs declarations into a complete and closed-loop new business model, building upon Anlink, to make sure all the information along the entire process, from diamond mining, cutting, quality inspection, logistics, processing, wholesale and retail is uploaded to Anlink. Thanks to the non-tamperable and unforgeable features of blockchain, authenticity of the information is guaranteed, thereby delivering trustworthy diamond traceability information.
Each diamond on the blockchain platform contains a unique, non-tamperable and permanent record. Consumers can use this electronic ID to verify the authenticity and circulation of a diamond. Moreover, to better protect the rights and interests of traders and consumers, all sensitive information will be stringently encrypted.
According to Zhang Yongwen, CEO of Diamsledger Technology, information of 760,000 diamonds has been uploaded to Anlink as of mid-July, with diamond trade evolving from of the traditional model of a single conventional certificate to “double assurance” covering “conventional certificate + electronic ID card”. When purchasing diamonds, consumers can verify the entire product flow on the blockchain traceability and trading platform (http://www.diamsledger.com/#/search), the WeChat public account (鑽石溯源) or the WeChat applet (鑽石溯源), making it easy to identify the authenticity of a diamond.
Address pain points in the trading process, rebuild the supply chain
Under the conventional trading model, even if a diamond has already been issued an appraisal certificate, it is difficult to match each piece of information to the meticulous processes of mining, cutting and sales of rough diamonds. This has created some issues common problems in diamond trading, including high transaction costs, intricate circulation processes and regulatory challenges. Meanwhile, the industry order has been further disrupted with a large number of diamonds entering the market via unofficial channels, curbing the marketization process and normal circulation.
Li Xuefeng, CTO of ZhongAn Technology, said the Company is the intensive application of blockchain technology in the diamond trading market is expected to effectively increase the transparency of diamond trading, protect the privacy of traders’ sensitive information and setting trading standards for the diamond industry.
The blockchain diamond traceability and trading platform will lead to the seamless transactions between remote buyers and sellers, which will satisfy keen demand of merchants to trade diamond securely and speedily. With proprietary image recognition engine, the platform can identify key information from various images, bills and documents with an accuracy rate of 99.9%, thus effectively combating irregularities in diamond trading such as falsified certificates and credentials, synthetic diamonds and transaction frauds, which will significantly reduce transaction costs.
With the platform’s process automation engine, users in the diamond traceability and trading process will be granted access to a dedicated process and give configurations that are fit for their respective scenarios. This will help accelerate the circulation of diamonds, thereby increasing operational efficiency substantially..
To address regulatory challenges over quality of diamonds and severe disruption of the industry order stemming from unofficial channels of diamonds, etc, the platform will assist relevant institutions in improving quality and transaction supervision by being a gatekeeper at the source, better regulating the market, with an aim to further the robust development of the diamond industry.