As never expected before; blockchain is expected to deliver value which was previously unthinkable. Now blockchain would be able to cover an entire ecosystem of diamond traders with diamond grading reports being delivered through blockchain networks. The transfer of such valuable information through a safe channel like blockchain enhances the credibility of the diamond trading ecosystem. This technology is expected to enhance the profitability of different participants of the diamond trading ecosystem.
Before we proceed to speak more about the subject; let us first understand the true essence of blockchain. Blockchain is a technology that works primarily on distributed ledgers which are interconnected through continuous chains of data linked with each other. The chain of information stored in a blockchain is immutable! Nobody can access the information from outside other than the participants in the blockchain network. Even the own participants within the blockchain network would not be able to make changes with the existing data stored in the hyper ledger framework. The blockchain consolidated networks ensure that the most important checkpoints of diamonds are validated and stored in the continuous ledger:
- Provenance –The provenance or origin of diamonds is very important especially due to the large circulation of conflict diamonds across the world. The conflict diamonds are generally mined to fund a particular conflict or agenda. The stringent International Laws and Regulations on conflict diamonds make it one of the strictest laws to govern international trade of diamonds.
- Cross Border Transaction and Remittances – The cross border diamond transactions are often very lengthy with intense paper works. These blockages in the payment processing industry often hindered diamond trade from flourishing. The third-party remittance platforms resulted in increased cost of transactions. Blockchain promises to remove all third party remittance platforms which were increasing the overall cost of transactions.
- Fraud protection with identity protection – The blockchain technology promises to overcome several problems associated with the diamond and valuable gem jewelry industry which arises due to frauds and multiple instances of identity theft.
The diamond grading process is set for a complete makeover with the introduction of blockchain-powered reporting process. Now, nothing would go untraced within the network.