Editor’s Note
This article explores the founding motivation behind Provenance Proof AG, a startup launched by the family-owned Gübelin company. Driven by a need for greater transparency and traceability in the gemstone industry, the initiative stems from a long-standing tradition of innovation and a vision to precisely document the origins of precious stones.
Provenance Proof is a startup by the family-owned company Gübelin. It all began with the need for greater transparency and traceability in the gemstone and jewelry industry. This company has a tradition of fostering an innovation-oriented mindset.
This initiative made it possible to examine the entire value chain of the gemstone industry, enhancing transparency and trust. In 2019, the world’s first blockchain-based platform was introduced, enabling the recording of the journey of every gemstone, from rough stone to finished jewelry, in a tamper-proof manner. Also in the same year, Provenance Proof AG was established as an independent subsidiary of Gübelin, becoming a neutral third-party provider ensuring transparency for the gemstone and jewelry industry.
Blockchain is like a digital diary. All stakeholders involved in a gemstone’s value chain add a so-called page by recording their information. Simultaneously, Provenance Proof’s blockchain enables the digitalization of inventory through the entire supply chain of each mined gemstone. In this process, a unique digital twin is created for each individual gemstone, viewable only by the gemstone’s owner. Blockchain technology provides advanced encryption and data immutability here. This ensures that only authorized parties can access information about the gemstone’s supply chain and origin. By obtaining the digital twin and complete documentation for their purchased jewelry, consumers gain insight into the previously hidden, exciting world of gemstones. To date, approximately 9 million gemstones have been registered on the blockchain, involving about 700 companies from over 50 countries.
An excellent example of the benefits created by our solution is the collaboration with Moyo Gems, a local initiative selling ethically mined gemstones from Tanzania. The goal of this collaboration was to make the working conditions of women engaged in small-scale mining in Tanzania’s gemstone industry transparent and to improve them. The results speak for themselves. The transparency of working conditions increased pressure on local authorities, leading to strengthened efforts to improve women’s safety. Also, demand for these traceable stones increased significantly.
Lucerne has established itself over decades as a global hub for the luxury watch and jewelry industry. Lucerne not only plays a key role for the Swiss retail sector based in central Switzerland but is also a significant city for the gemstone industry. Gemstones from around the world are brought to Lucerne, where Gübelin’s Gem Lab conducts analyses on behalf of renowned auction houses, jewelry brands, and museums. Operating from the same location as such lighthouse companies also enhances international credibility and reputation. For many, Lucerne is closely associated with jewelry and watches.
Furthermore, reasons for Provenance Proof choosing Lucerne as its headquarters include its central geographical location and excellent accessibility. This allows for optimal networking in all directions, within Switzerland, across Europe, and beyond. Additionally, Lucerne, highly appreciated by many visitors including clients and business partners for its charm, is a popular destination.
