Provenance Device Could Transform Diamond World
May 03, 23
The diamond industry has faced three major disruptive factors in the past three years: lab grown diamonds, the global pandemic, and the Russia-Ukraine war. Spacecode, a Swiss company focused on automated diamond inventory management systems, has developed a unique diamond identification and authentication technology. Last week it announced a technology breakthrough in its research, enabling the identification of a country-of-origin for both rough and polished diamonds. If Spacecode's technology determining the origin of diamonds is proven to be commercially viable, the industry could face an additional, and probably one of the most significant transformations in its history.
Spacecode's breakthrough announcement this week has however raised doubts among some industry experts who have long been pursuing such technology but to no avail. The enthusiasm and confidence of its Chairman and CEO, Pavlo Protopapa made me believe that he and his scientific team can actually deliver where so many others have so far failed.
Technology
One of the only techniques to achieve a precision level parallel to a human DNA in the identification process of a diamond is to identify traces of foreign elements in the stone. These elements could include copper, calcium, titanium and dozens more, all in extremely small quantities. How small? The trace elements in a diamond are so small that a VVS1 pinpoint inclusion when compared to the average size of the trace elements used in Spacecode's technology, would be like comparing a giant mining truck standing next to an ant.
According to Spacecode's CEO, Pavlo Protopapa, the company's physicists, chemists and engineers have already tested thousands of stones and been able to identify country-of-origin with an accuracy of over 99 per cent. "We are now developing a commercially scalable device that implements our design and method to be deployed in large quantities worldwide," he said.
In Tokyo, on the 19th of May, the G7 and EU may well choose Spacecode's innovative technology to validate the self-declarations of traders of the origin of diamonds imported into Western countries.
Implementation in the Rough World
Antwerp and Tel Aviv may, surprisingly, actually benefit from this new development. For example, diamond traders may unknowingly purchase and mix some diamonds of different origins into their diamond shipments. But when trying to export to Antwerp or Tel Aviv, these goods would be detected by the Israeli or Belgian customs, if they were using Spacecode's device. Therefore, there might be a new trend, in which rough traders would again prefer importing their diamonds directly into the Antwerp and Tel Aviv markets. Therefore, the Spacecode device would become a must on the diamond buyer's table, just like the color detection devices and the OGI and Sarine analytical machines.
Implementation in the Polished and Jewelry Worlds
Once Spacecode's device is proven reliable, it would enable the implementation of programs like De Beers Tracr (blockchain), GIA's Diamond Origin Report, HB-Botswana etc. It could generate an easy and reliable identification of the country of origin for the entire supply chain - miners, manufacturers, traders, jewelers and even consumers themselves.
The G7 and EU customs authorities could employ Spacecode's devices to sample incoming goods, to confirm whether they comply with regulations. But this is only the tip of the iceberg. The big brands and jewelry chains that demand a declaration from their suppliers regarding the country-of-origin of the diamonds purchased, would finally have the tool to verify those declarations.
Potential Impact on Global Trade
"Spacecode's technology provides a major opportunity to positively advance the entire diamond industry," says Protopapa. "Every single diamond will not only receive its reliable country-of-origin identification, but more importantly, it will turn every stone into a unique entity. Spacecode's technology will generate a document similar to a human birth certificate. Every single diamond will have its own 'diamond DNA' which will be similar to the human unique DNA identification. This 'diamond DNA' could be detected by any of Spacecode's devices, anywhere around the world".
Protopapa's vision could be transformed into new marketing programs that would match even Gen Z's passion for NFT and other virtual investment and collectible items. As with NFT's uniqueness, Spacecode's technology turns every diamond into a unique personalized jewel.