Integration of Blockchain and IoT for Enhanced Transparency in Diamond Supply Chain

PURPOSE: With a focus on enhancing transparency, lowering the risk of fraud, and ensuring ethical sourcing practices, this research aims to investigate how blockchain and IoT technologies can be incorporated into the diamond supply chain. This study addresses the complexities and challenges of implementing these technologies in an industry characterized by fragmented information sharing and centralized data storage. DESIGN/METHODOLOGY/APPROACH: Using both qualitative and quantitative analysis, the research uses a mixed-methods approach. While secondary data was obtained from previously published works, industry reports, and case studies, primary data was gathered through semi-structured interviews with professionals in the field. The implementation of the prototype system was carried out in three phases: Define, Operate, and Test. Ethereum was chosen for its smart contract capabilities, and various IoT sensors were deployed to monitor environmental conditions and track the real-time location of diamonds. FINDINGS: The integration of blockchain and IoT technologies significantly enhanced transparency within the diamond supply chain. The immutable nature of blockchain ensured tamper-proof records of transactions, while IoT sensors provided continuous real-time data, reinforcing transparency. The study observed a notable reduction in fraud due to the robust mechanisms of the system, which detected and prevented unauthorized alterations to the recorded data. Smart contracts automated compliance checks, ensuring adherence to ethical standards. Quantitative analysis revealed improvements in key metrics such as fraud reduction rates, transparency enhancements, and adherence to ethical sourcing standards. ORIGINALITY/VALUE: This study bridges a notable gap in existing research by focusing on the diamond supply chain. It provides comprehensive, data-driven insights and practical recommendations for industry stakeholders and policymakers. The results highlight how combining blockchain and IoT technology can improve operational efficiency, transparency, and ethical practices in the diamond business. It is also feasible and scalable. The study's methods and findings add a great deal to the body of information already in existence and provide a framework for further investigation and application in related situations.