The gem and jewelry industry is one of the oldest globally, and diamonds are probably the most coveted precious stones in the market. However, the sector has been mainly run on not-very-transparent traditional ways and sustained by backroom handshakes. Marked by minimal documentation, these two traits have presented diamonds as a favored vehicle for financing crime and laundering money. Diamante – a global diamond consortium powered by blockchain technology –is ready to launch its native asset, DIAM, to bring trade-in diamonds one step closer to encrypted digitization. This evolution aims to mitigate some of the challenges afflicting the diamond industry.
Benefits of participation in Diamante Blockchain Consortium:
The process of producing a diamond – be it gem-quality or the sort suited more to industrial purposes – sees the rough stone extensively travel from one part of the planet to another, with multiple stops in between. It could be sourced in Canada, Australia, Russia, Botswana, and South Africa, stop to be cut and polished in India, Israel, and China, and set in jewelry in Hong Kong and the USA. Finally, it would be sold worldwide to contribute to a market worth 80 billion dollars. The trade-in diamond is, in a nutshell, global.
This brings into the equation a voluminous change of hands in currency, documentation, verification, and money transfers through traditional institutions. Altogether, the process could span days, costing investors millions of dollars.
Transferring operations such as tracking the gems’ movement on a supply chain, keeping a tab on exchanging documents, and verifying transactions on a blockchain have their benefits. A decentralized, immutable digital ledger would provide the industry with reliability and accountability, which is till now lacking. The Diamante blockchain network will see participation from different diamond sectors, including mining companies, manufacturers, retailers, and end customers.
Employing cryptocurrency also circumvents the tedious and time-consuming process of dealing with the standard payment model that goes through multiple stages of processing and regulations in banks. Diamond consortiums like Diamante attract investors because payments made on a blockchain network using cryptocurrency are much quicker. Additionally, the elimination of the need for intermediaries and agents makes the process low on cost.
Since it is not easy to convince traditionally conservative players to adopt new technology, the switch to the blockchain platform will be incentivized. Participants of the diamond consortium will be able to purchase and trade with DIAM and create and list their own crypto coins on Diamante’s global cryptocurrency exchange. The consequence of this would be an enhancement of the profitability of their involvement in the diamond industry. The very practice of trading in cryptocurrency brings new energy into the market while visibly reducing the opaqueness attached to it.
Although there is much to hope for regulation in cryptocurrency, the traders at Diamante will be allotted a digital wallet and listed after thorough due diligence and stringent vetting. This covers KYC stages, verification of adherence to AML laws, and the Kimberly Process.
Way forward for blockchain in the diamond industry:
The diamond industry is fraught with challenges, and the introduction of a decentralized, immutable, easy to access blockchain ledger can address most of them. Simultaneously, cryptocurrency and its trade on exchanges such as the one provided by Diamante invigorate the diamond market, bringing in more investment without having to buy and sell diamonds themselves.
About Diamante Blockchain Consortium:
Diamante Blockchain LLC, the USA-based diamond consortium, is your one-stop destination if you are looking for result based diamond supply chain management. The consortium provides a unified marketplace for players across the diamond industry – from mining companies to cutters, polishers, certifiers, manufacturers, retailers, and end-customers. Built on Distributed Ledger Technology, Diamante Blockchain Consortium promises its clients and members complete transparency, assured quality, and cost-effectiveness in trade and transactions within its network.
The Diamante Consortium makes for an ecosystem where its members can obtain a line of credit with ease. It provides a first-of-its-kind marketplace for the Gem and Jewelry industry where trade is established through smart contracts. The consortium operates in compliance with Kimberly Certified norms, Anti-money laundering (AML), and USA Patriot Act.
Diamante Blockchain Consortium uses DIAM – its native digital asset – to carry out transactions and trade in its blockchain network.