Problem 1: Traceability Breakdown
A diamond, from the African mine to the cutting mill in Antwerp, and then to the hands of Chinese consumers, typically undergoes five to eight transactions. During each transfer, the traceability information may be lost, tampered with, or forged. The traditional industry rules only cover the cross-border circulation of rough diamonds, and completely lose the tracking ability for the finished-cut diamonds. The source information of the diamonds purchased by consumers can only rely on the oral account of the retailers, and there is no independent and trustworthy technical means for real verification.

Problem 2: Certification Fraud
The certificates issued by major authoritative jewelry laboratories are the core basis for pricing diamonds. However, there has been a long-standing problem of certificate fraud in the industry, where certificates of high-quality diamonds are used on low-quality diamonds, which has become an openly exposed loophole in the industry. The traditional laser engraving verification method is not widely used, not all diamonds have waist codes, and the waist codes themselves can be forged, greatly weakening the credibility of the entire diamond certification system.