Secure diamond smart cards and exchange systems therefor

A method for authenticating a portable diamond package with a mobile device, comprising:

• providing, by an authentication device via the mobile device, a connection challenge to an authentication server, the authentication device embedded within the portable diamond package and located inside a package body, the portable diamond package having one or more-diamonds located in the package body, wherein the package body is configured to reveal any tampering with the one or more diamonds located in the package body and the authentication device comprises a physical unclonable function (PUF) chip configured to output a unique algorithmic response;
• establishing an encrypted connection between the authentication device and the authentication server responsive to receiving, at the authentication server, a response to the connection challenge from the authentication device;
• receiving, by the mobile device, an authentication challenge from the authentication server, the authentication challenge configured to verify the authentication device of the portable diamond package;
• interrogating, via a near field communication (NFC) interface of the mobile device, the authentication device of the portable diamond package with the authentication challenge;
• receiving, by the mobile device from the authentication device, the unique algorithmic response to the authentication challenge, wherein the unique algorithmic response indicates authenticity of the portable diamond package;
• capturing, by a camera of the mobile device, an image of the portable diamond package;
• forwarding, by the mobile device, the unique algorithmic response to the authentication server;
• sending, by the mobile device to the authentication server, a reference image of the portable diamond package;
• comparing, by the authentication server, cuts of a first set of diamonds in the image to cuts of a second set of diamonds in the reference image of the portable diamond package previously stored at the authentication server;
• and
• responsive to the unique algorithmic response matching an expected response known to the authentication server and the comparison yielding a total match score deemed sufficient for authentication, receiving a diamond package authentication confirmation on the mobile device.