Precious Stone Title Registration Using Distributed Ledger Verification
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Solution Overview
Problem
The diamond industry lacks a method for recording and verifying title ownership of precious stones, leading to unscrupulous transactions and difficulties in reporting stolen or unauthorized sales, as possession does not always equate to legal ownership.
Innovation Solution
A method and system utilizing a distributed ledger, such as blockchain, to register and verify ownership of precious stones by tagging them with identification information, which can be read using a device and updated during transactions, providing a verified certificate of ownership.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a distributed ledger system is implemented to register ownership of precious stones, then ownership verification reliability is improved, but device and system complexity increases
Solution Approach 1:
The patent introduces a distributed ledger system as an intermediary mediator between precious stone owners and transaction parties. The ledger stores identification information, ownership records, and transaction history in a decentralized manner, enabling reliable verification without requiring a central authority. This mediator resolves the trust issue while the modular architecture of the system manages complexity through standardized protocols and interfaces.
Solution Approach 2:
The patent replaces traditional mechanical or manual ownership verification systems with a digital distributed ledger system. Instead of physical certificates or paper-based records that are prone to loss and forgery, the system uses cryptographic hashing and distributed storage to create an immutable digital record of ownership. This substitution improves reliability while the automated verification processes reduce operational complexity.
2Measurement precision
If tagging and registration processes are implemented for precious stones, then ownership information accuracy is improved, but manufacturing and processing difficulty increases
Solution Approach 1:
The patent implements preliminary tagging of precious stones with unique identification information at the point of creation or acquisition. The identification tag (such as a laser inscription, RFID tag, or cryptographic marker) is applied before the stone enters circulation. This preliminary action ensures that accurate ownership information is captured from the outset, and subsequent registration processes become simpler as the foundation data is already in place.
Solution Approach 2:
The patent creates a digital copy or representation of the precious stone's identification information and stores it in the distributed ledger. This digital copy contains all necessary ownership and provenance data, allowing verification without physically handling or re-tagging the actual stone. The copying process improves accuracy by preserving exact information while reducing the complexity of physical tagging operations.
3Reliability
If comprehensive ownership information is recorded and verified, then transaction trustworthiness is improved, but information processing time increases
Solution Approach 1:
The patent implements automated feedback mechanisms where the distributed ledger system continuously verifies and updates ownership information. When a transaction occurs, the system automatically checks the ledger for valid ownership records, updates the transaction history, and notifies relevant parties. This real-time feedback loop ensures trustworthiness through comprehensive verification while automating the process to minimize manual intervention time.
Solution Approach 2:
The patent performs preliminary verification of ownership information before transactions are finalized. The distributed ledger maintains up-to-date records of ownership status, allowing quick validation during transactions. By having verification data prepared in advance and readily accessible on the distributed ledger, the system reduces the time required during actual transactions while maintaining comprehensive verification standards.
Data Source
AI summary
A method for registering title to a precious stone to provide verified ownership information of the precious stone, comprising: a) performing at least one of associating or updating information, including ownership information, with respect to the precious stone on a distributed ledger; and, b) recording the associated and/or updated information on at least one medium, wherein the precious stone has been previously tagged or marked with an identification and that identification has been registered on the distributed ledger.