Technology expert Everledger has partnered with Chinese retail giant JD.com and the Gemological Institute of America (GIA) to bolster transparency in online diamond purchases by using blockchain to track provenance.
Through blockchain interoperability technology, the Everledger platform syncs diamond grading information from GIA to JD.com's blockchain anti-counterfeiting and tracing programme to provide customers with independently verified diamond certificates and origin information.
This data will be made available to JD.com's more than 380 million online and offline users through the JD.com app as well as on JD.com’s mobile and desktop websites.
Through this collaboration, JD.com’s customers can check the validity of a GIA diamond grading report and access valuable insights into the characteristics of their purchase before the diamond and its GIA report even arrives at their doorstep.
Applying blockchain technology in e-commerce to store verifiable grading reports will provide unprecedented levels of transparency into the quality and authenticity of diamonds purchased online, thereby enhancing the customer's digital experience and boosting trust in China’s online jewellery market, according to Everledger.
Algorithms in the platform will also help JD.com identify and reduce fraudulent use of GIA reports, including sale of multiple diamonds with the same report. This will be supplemented by livestreams and other initiatives to help customers avoid fraudulent activity when purchasing diamonds.
Everledger said these improvements are crucial in the Chinese market where digitally savvy millennials account for 68 per cent of diamond sales compared to only 45 per cent worldwide.
This collaboration marks the next step in Everledger’s expansion in China, which started in 2018 when it collaborated with GIA and Chow Tai Fook Jewellery Group to use blockchain technology to deliver secure, digital diamond grading reports to consumers for the first time.
Everledger also introduced a WeChat Mini Program e-commerce solution in partnership with Alrosa. Major internet company Tencent led Everledger’s Series A round of investments last year.