Editor’s Note
This interview with Klemens Link, Director of Provenance Proof AG, explores how the Swiss company is leveraging blockchain technology to bring unprecedented transparency and security to the gemstone industry. Their innovative solution addresses critical challenges of traceability and counterfeiting, offering a new standard for verifying provenance from mine to market.
To enhance traceability and combat counterfeiting of gemstones, this company based in Lucerne, central Switzerland, has developed a blockchain solution. In this interview, Director Klemens Link discusses the origins and advantages of this innovative solution.
Raphael Gübelin wanted to better reveal the origin of gemstones and utilize cutting-edge technology to uncover more supply chain information. This was the driving force behind launching the “Provenance Proof” initiative in 2017. Consequently, the entire value chain of the gemstone industry is undergoing a transformation to improve transparency and trust.
In 2019, we launched the world’s first blockchain-based platform capable of recording every step of a gemstone’s journey from rough stone to finished jewelry, effectively preventing data tampering. That same year, Provenance Proof AG was established as an independent subsidiary of Gübelin, acting as a neutral third-party provider to ensure transparency in the gemstone and jewelry industry.
In this process, each gemstone generates a unique digital twin, visible only to its owner. Blockchain technology provides robust encryption for the data, ensuring it cannot be altered. This allows authorized personnel to gain deep insights into the gemstone’s supply chain and origin. Thus, consumers possess a digital twin of their purchased jewelry, containing a complete record and exciting insights into the gemstone world that would otherwise not be public. Currently, approximately 9 million gemstones are registered on the blockchain, involving about 700 companies from over 50 countries.
This technology offers multifaceted advantages. On one hand, complete traceability creates transparency regarding the gemstone’s origin, building consumer trust. Consumers can be confident that these gemstones are ethically mined and fairly traded. Furthermore, the blockchain solution helps prevent gemstone counterfeiting or illegal trade, as each stone has a unique digital fingerprint. Finally, the technology enhances supply chain efficiency and security because all information on the blockchain is available in real-time, unforgeable and immutable.
A prime example of the benefits of our solution is the “Moyo Gems” project. We collaborated with a local sales company that markets ethically sourced gemstones mined in Tanzania. The aim of this partnership was to improve the working conditions for the majority female artisanal miners in Tanzania’s gemstone sector by increasing transparency. The results speak for themselves: this visibility put pressure on local authorities, who subsequently had to increase efforts to ensure women’s safety. Market demand for these traceable gemstones also increased significantly. Both jewelers and end customers are willing to pay a premium for transparency. This successful collaboration impressively demonstrates that transparency and ethical trade can create real added value for all parties involved.
Like the House of Gübelin, Provenance Proof is based in Lucerne. What makes Lucerne an attractive business location for you?
Gemstones from around the world come to Lucerne to be analyzed by the Lucerne Gem Lab, representing renowned auction houses, jewelry brands, and museums. Being located alongside these lighthouse companies grants us greater credibility and prestige, which has already opened international doors for us. For many, Lucerne is closely associated with jewelry and watches.
Furthermore, Lucerne’s central location and excellent transport connections make it an ideal base for Provenance Proof. This allows us to build comprehensive, optimal networks within Switzerland, across Europe, and beyond. Additionally, our guests, including clients and business partners, appreciate Lucerne’s high appeal and enjoy visiting.
