The benefits of the crypto assets for the diamond industry are immense especially considering the wide range of benefits that are offered from the crypto assets. For long, the diamond industry has been plagued by several factors that have slowed down one of the biggest industries of the world. In a global ecosystem where there is always a risk of economic slowdown due to existing global factors, blockchain-driven cryptocurrencies can act as a platform to give a boost to the diamond trade. Some of the major factors which have remained a pain area in the diamond industry are:
- The provenance of diamonds – The conflict diamonds or blood diamonds has always been a pain area for the diamond trading ecosystem. With certain obligations and regulations from authorities like the Kimberley, certification put a significant amount of strain on diamond dealers. The introduction of crypto assets and cryptocurrencies would put a check on the trading of illegal diamonds or conflict diamonds due to the involvement of blockchain.
- Lessor no paper works – The use of papers will eventually slow down the entire process of remittances and transactions across the length and breadth of the diamond trading network. The use of cryptocurrencies ensures that the trading periphery is reduced significantly. Thus, you would be able to conduct paperless transactions at the drop of a hat from thousands of kilometers away.
- Tokenization of assets – The process of tokenization of assets in the form of diamond assets helps in preventing a lot of frauds and identity thefts. There are a number of reasons why the tokenization of assets is very important for the crypto industry. Multiple instances of identity thefts have been reported in the past which have been steadily minimized with the help of crypto-currencies.
The coming of cryptocurrencies within the circuit of transactions in the diamond trading network has helped in tracking diamonds to their source using critical blockchain technology