Bitcoin companies from all over the world are making a name for themselves once they get a chance to demo their project at an accelerator or startup competition. Everledger is a Bitcoin startup looking to wield the power of blockchain technology to fight diamond theft. Their business idea did not go by unnoticed, and the company recently won 30,000 EUR in a BBVA competition.
Everledger – Fighting Diamond Theft With The Blockchain
Diamond theft is a major concern in the world, as repercussions extend far beyond the wealthy and the elite. Things have gotten out of hand in recent years, as roughly 65% of fraudulent diamond claims go by undetected, leading to insurance companies bleeding money left, right and center. The lack of transparency is very apparent in this industry, to say the least.
In fact, insurance companies are at a stage where the topic of most conversations revolves around comparing notes regarding diamond fraud rates over the past year. More and more companies are finding themselves to be in this awkward position, as fraudulent diamond claims keep rising year over year.
The major problem regarding these claims is the lack of tools to detect whether or not diamonds have been stolen or not. Proof-of-ownership of jewellery, just like precious metals and other high-value commodities, is locked in paper. As we all know, paper can be corrupted quite easily, or be misplaced in some cases.
Luckily for all parties involved, there is a technological solution to this problem. Blockchain technology can be adapted to suit the need of tracking objects and their whereabouts in real-time, without relying on central points of failure. On the other hand, such a massive undertaking would require proper scaling, a hurdle that is not easy to overcome for most companies.
Everledger has partnered with various institutions active in the diamond sector, such as law enforcement, insurers, and all of the world’s diamond certification houses. All of the data related to diamonds in circulation and proof-of-ownership can be transmitted through Everledger’s API. Furthermore,t he same technology can be used to return stolen diamonds to their rightful owner.
“We’re in a digitised world, so the real solution is a globalised ledger that enables complete visibility … for multiple insurers, police and multiple stakeholders to see and understand what is transacted around that object. Unfortunately, as much as everyone gets excited about blockchain, it’s actually being led by an industry need and blockchain happens to be a solution, rather than the other way around.” – Everledger CEO Leanne Kemp told the media in an interview earlier this year.
Everledger Wins The BBVA Competition
The past few months have been pretty exciting for Everledger, as the London-based Bitcoin startup was crowned the co-winner of BBVA’s European Open Talent Competition a few days ago. Origin, the other co-winner of this competition, aims to create a marketplace connecting issues and investors in the corporate bond market.
Everledger had to face some stiff competition from other Bitcoin companies in the finals, as both Safello and Vaultoro had made it through the rounds as well. In fact, Everledger is the second Bitcoin company to win a grand prize in this competition, as Bitmexo was a co-winner of the Latin America Final last month.
Source: Press Release via Email
Images courtesy of Everledger, BBVA, Shutterstock