Several industries have been experiencing optimization and much more enhanced operations with the use of Blockchain technology.
The same technology that powers Bitcoin and other cryptocurrencies is now being utilized in various industries including healthcare, government operations, supply chain, entertainment, among others.
Blockchain enhances diamond trading
The latest industry being revolutionized by Blockchain is diamond trading.
Nearing the completion of the first phase of a proof-of-concept of a Blockchain-based authentication and safe record-keeping diamond trading service, Singapore Diamond Investment Exchange (SDiX) aims to secure their operations with the aid of Blockchain. In collaboration with physical commodity digitization experts Kynetix and Everledger, SDiX aims to establish itself as a trusted and transparent marketplace for diamond trading as an investable asset.
Singapore Diamond Investment Exchange CEO Linus Koh says:
“This exciting collaboration builds on SDiX’s record of delivering advanced technologies to enable a trusted, fair and transparent marketplace for trading diamonds as an investable asset class. This new concept draws on blockchain’s distributed ledger capability to demonstrate how we can further instill confidence and convenience for the benefit of diamond investors and financiers.”
Blockchain technology will enable diamond holders who have certificates from third-party verification laboratories to authenticate the ownership and credibility of the diamonds. A change in the diamond ownership as a result of trading on SDiX will automatically get updated in the digital marketplace.
The technology reported will authenticate the primary details of an allocated basket of diamonds on SDiX, containing GIA-certified diamonds. An important part of the output is the “view receipt” functionality of the digital certificate for every diamond in the basket. This is nested in Blockchain.
The process opens a gateway of future applications for the participants of the diamond market, which will include:
- Improved data on the origin of the diamond;
- Enhanced supply chain reliability and soundness; and
- Better risk management tools and resources.
Reinforcing security and insurance in transactions
Having traceability and control of high-value assets such as diamonds is beneficial for owners, insurance companies and the diamond industry as a whole.
With with aid of Blockchain technology, it will help cut down on illegal diamond trading and reinforce the accountability of all parties involved. The lesser the mobility of illegal diamonds in exchanges, the more difficult it is for criminals to benefit from them, helping eradicate a long-standing issue in the industry.
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