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Details
Date: Thursday, February 22, 2024
Time: 10:30pm IST / 6:00pm CET / 5:00pm GMT / 12:00pm EST / 9:00am PST
Meeting link: https://zoom.us/my/hyperledger.community.backup?pwd=dkJKdHRlc3dNZEdKR1JYdW40R2pDUT09
Zoom Meeting ID: 622 333 6701 Passcode: 475869
Upcoming events
- Feb 19-22: GS1 Global Forum (Brussels, Belgium and online)
Feb 29: Supply Chain Innovations & AI: What's Working, What's Not, and Current Outlook with Microsoft & Hitachi Solutions (webinar)
- Feb 29: MIT Center for Transportation & Logistics Webinar AI Driven Supply Chains: 3 Cases
- Mar 7: Hyperledger Supply Chain & Trade Finance SIG - Jeff Pribich, SIG CoChair will give a technical demonstration
- Apr 3-5: NFT-NYC
- Apr 18: Hyperledger Supply Chain & Trade Finance SIG - Farm to Plate
- May 2: Hyperledger Supply Chain & Trade Finance SIG - SIG Member & The Giving Chain CEO Bobbie Muscara will present on how they use NFTs
- May 16 Hyperledger Supply Chain & Trade Finance SIG - Alexander Style of Vinturas
- June 4-5: Freightwaves Future of Supply Chain, Atlanta, GA
Announcements
Presentation
Leanne Kemp of Everledger: Enhancing Traceability in the Diamond Industry: Integrating Financial Accountability
Idea for Everledger came about in 2014, moving blockchain from cryptocurrency to transparency. Rise of sanctions (Office of Foreign Asset Control (OFAC)'s Russia-related sanctions), concerns about diamond industry, and lab grown diamonds and fraudulent services have increased need.
The vision is for added transparency, trust, sustainability. Vision holds strong in the diamond industry, as well as other industries. Looking at returning tailings (waste) in the mining industry.
In the diamond industry, the need for traceability and transparency hold true. Driven by compliance - blood diamonds, Russian sanctions, are on the mind of consumers.
The Everledger solution has 3 key components: Entity Passport, Supply Chain Passport, and Material Passport. Data Connectivity & Provision, including data sovereignty, entity association from any operating system, and the Blockchain Platform, to ensure data validation, integrity and privacy are critical
In 2014, digital product passports were being thought about. Now some policies include them.
In 2023, Everledger started working with Signet, a major global leader in the diamond industry. Water use. Reducing waste of metals.
On the Ernest Jones website, the website includes smart contract and other technologies. The <Trace Origin> button shows a window that shows the supply chain for the diamond (source and mining date of the diamond, polishing info, other info. Info shows "how the sausage is made", at fingerprint level across the supply chain.
Russia is the #1 diamond-producing country in the world. They are now being sanctions by G7 countries, presumed to be largest consumer audience for diamonds, so the sanctions should have a substantial impact.
March 1, 2024, a ban will start on diamonds mined in Russia that are polishd in third countries.
Sept 1, 2024 - ban expands to lab-grown diamond, diamond-crusted watches
Third party diamond traceability solutions: Everledger, GIA, Sarine, Tracr (from DeBeers).
KYC (Know Your Customer) is being married with KYO (Know Your Object)
By coupling payments with object-level info, and maintaining immutable transaction records, stakeholders can uphold ethical standards, mitigate risks, and foster trust in the trading ecosystem.
"If it's traceable, it's bankable!" It is "very common" for Antwerp diamond companies to be refused bank accounts, due to costs when exercising high risk activities (e.g. arms dealing, professional football clubs). Traceability makes diamond industry companies bankable by reducing risks.
It's important to have transaction-level data, many different documents provide data and are cross-checked.
Categories of data include: Geographic or material origin, chain of custody, responsible sourcing and ethical practices.
Chain of custody event handling is critical to supply chain traceability.
Integrating Financial Accountability:
OFAC sanctions drive stricter due diligence in diamond transactions
Transitioning from KYC to KYO
Integrating financial data
Traceability platforms
Financial integration
Automated compliance mechanisms
Everledger has used Hyperledger from the beginning. The data they collect has to be carefully managed, carefully maintained. In the industry, there is a human consensus mechanism. They needed to enable onboarding with veracity, with a symphony of technology - machine learning, machine vision (a type of AI), and tracking. The industry looks to them to maintain stability. It's clear that governments will not trust trade-related data to be on a public, permissionless platform.
In 2023, Everledger had to restructure the company due to a transaction event with a specific investor. They didn't agree on the future path of the company. Leanne was the significant shareholder and controlled the board. She and the team decided to liquidate and restructure. She owns 100% of the company. The customers and staff kept the company moving forward.
DNA analysis - can do forensis analysis of diamonds to identify geographic source. For emeralds, other gemstones, like emeralds, are softer, so companies can infuse stones with DNA-infused liquids for DNA-based tracking.
RFID tamper-proof packaging technology Everledger developed in 2016/17 for their Chai Wine Vault platform has been adapted and is now in use in Napa Valley as well as Europe for wines, for gin and other spirits, and on tags for Steve McQueen and other fashion brands. The technology came out of Leanne's professional background in RFID tech.
The diamond supply chain is a highly secure environment. It's moved in secured transport (Brinks, three others), with good handoff documentation at every part of the supply chain. This enables chain-of-custody tracking.
Related resources:
Attendees
Leanne Kemp
Christos Tsislianis
Anupa Dasgupta