Blockchain Technology to Polish Diamond trade; Startup Innovation
Blockchain technology will modernise diamond trade. It aims to change the pricey rock into cryptographic tokens. Diamond trade have travelled a long way since Kimberly. Companies are implementing blockchain technology to diamond trade changing diamonds to financial assets by representing their value as tokens. Three startups are planning to make diamond trade more efficient and accessible.
Changing the face of Diamond trade
Three startups namely Glitzcoin, CEDEX and Carats.io are utilising blockchain technology to revolutionise diamond trade. CEDEX , an Israel-based startup, aims to start the world’s first blockchain-based diamond exchange. Their motive is to turn the diamonds into a liquid asset by creating a standardised price benchmark.
CEDEX lets diamond holders to upload their stones on their blockchain. The blockchain enables investors to evaluate their investment. Its blockchain is built on Ethereum which will be powered by CEDEX coin. CEDEX is currently registering its coin at cryptocurrency exchanges. It plans to launch the exchange in the first quarter of 2019.
Glitzcoin, located in Estonia, looks to coordinate the whole process of mining, cutting, sorting, polishing and valuing the diamonds. It plans to combine mining, shipping and insurance entities to its platform. It also intents to open a decentralised diamond exchange which will enable consumers “to invest in individual diamonds, shares of a high-value stone or shares in a basket of diamonds like an Exchange Traded Fund (ETF).”The Glitzcoin blockchain is based on Stellar coin.The company hopes to remove middlemen from the system, making diamonds more cheaper and accessible to people.
Cairo.io, an israeli based startup, plans to utilise a different approach. They plan to design a token backed by diamonds an idea similar to Tether. According to its website: “The CARAT Token holds the eternal value of diamonds, so holders can store and transfer tokens without fear of volatility.”
Carats.io is using diamonds registered on the Israeli Diamond Index (IDE) to develop an index of diamonds called the Get-Diamond Index. Therefore, when someone buys a Carat token, Carats.io buys the equivalent worth of diamonds from the IDE. Carats.io has raised $1.6 million and its token generation supposedly begins later this year.
Diamond trade when linked to blockchain technology increases transparency and will help create a decentralised system for diamond trade. Availability of diamonds as financial assets will increase the accessibility and affordability of diamonds.
Image via shutterstock
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