Blockchain To Infuse Efficiency In The Diamond Supply Chain
“Diamond” is derived from ancient Greece meaning “unbreakable” or “untamed”. Diamonds are thought to have been first discovered and mined in India going back as far as 6000 years ago and have been treasured and adorned as religious icons for almost as long.
Diamonds form under extreme pressure in the earth’s core; as deep as 250 km’s underground. Diamonds range in age from 1 to 3 billions years but consumers only witness diamonds for a second of their existence as miners mine them from the ground where they begin the journey to becoming a treasured piece of jewellery.
In the past, miners extracted raw diamonds out of the ground where the rough stones are sent for sorting. The next step is the cutting and polishing of the diamonds in the manufacturing phase. Finally, they are transferred to final production where designers create jewellery ready for the retail market.
Most consumers of diamonds only get to see that beautiful set of earrings or necklace in the showcase of the store. What most people don’t realise is that the stones have passed though dozens of intermediaries to get there. This has the potential for distrust, theft, fraud and added expenses that are ultimately passed on to the retail consumer.
Now what if there was a way to move this entire diamond supply chain onto one platform where all participants could have access to every detail of this journey with complete transparency? Until recently, the existing technological infrastructure would have made this impossible.
The development of blockchain technology for the diamond industry supple chain is positioned to dramatically transform how diamonds are traded.
GLITZKOIN plans to use blockchain technology to decentralize future journeys of diamonds making the diamond supply chain of the future, more cost effective, secure, and easier to track and trace. This will have substantial benefits to both buyers and sellers of diamonds as the economic efficiencies of the supply chain result in lower prices for the consumer and better margins for sellers.
We won’t discuss the technical components of how blockchains in this report but, the great news for both the diamond industry and retail customers is that it is now possible to build a modern state of the art diamond trading platform using blockchain.
GLITZKOIN plans to lead this process by developing a diamond trading platform that will bring together all stakeholders in the diamond industry from rough diamond procurement, cutting, polishing and retail sales. It will also ensure transparency by developing the platform on public and private blockchains achieving a hybrid technical model. Combining high levels of security of the public blockchain with permission controls of private blockchains allow for a best of both world scenarios.