The blockchain industry has been able to bring about a significant revolution in the diamond trade industry. The very concept of blockchain revolves around a unique blanket of security, authenticity, trust and sustenance unlike any other technological platform available in the market. In recent times, the diamond industry has often faced several challenges within its ecosystem which required a fully digitized solution based on mutual trust and verifiability. Blockchain technology became the obvious choice since it has the capability to ensure the desired competency sought after in the diamond trade industry. Every participant in the diamond trade industry sought a solution which would establish authenticity, provenance and traceability in the diamond trade.
The blockchain based solution for the diamond industry promises to make it a Smart Industry with seamless digital connectivity between the participants in a completely immutable ecosystem. The blockchain based solution balances four critical components of the diamond industry and its associated participants.
- Security and Privacy – The security and privacy of blockchain networks is full proof. Thanks to the immutability if blockchain networks with a decentralized structure where each participant can see the transactions but cannot edit the ones which have been captured. This also ensures that the traceability or origin of diamonds can be traced with ultimate perfection within a much secured ecosystem.
- Internet of Things – The implementation of the blockchain technology within the ecosystem of the diamond trade industry would imply that industry would have the capacity to connect the physical and digital worlds across the length and breadth of the diamond network. It will enable the network to capture diamond value chain data across the entire diamond industry.
- Distributed Ledger Chain – The distributed ledger chain is the connected network of validated transactions which ensures immutable transfer of resources. The distributed ledger would be accessible all participants of the diamond blockchain ecosystem. This ensures complete trust and cooperation among the participating members.
- Unique traceability of the transactions: Since the blockchain diamond network functions across an immutable continuous distributed ledger, it is obvious that all the transactions are traced to source. There would be no ambiguity or confusion regarding a single transaction or a set of transactions on the diamond trail.
With the advent of blockchain technology in the diamond industry, security, trust and traceability have become very obvious in the diamond industry ecosystem.