The blockchain industry has managed to bring in a significant transformation to the diamond trade industry. The very idea of blockchain is centered on a modern security concept marked with authenticity, trust and provenance unlike any other technological platform available in the market. In modern times, the diamond industry has been plagued by several challenges within its ecosystem which needed a completely digitized solution based on mutual trust and transparency. Distributed Ledger Technology became the right choice since it exhibited the potential to ensure the desired safety required in the gem, jewelry & diamond trade. Every participant in the diamond trade industry was looking for a solution which would ensure authenticity, provenance and traceability required in the diamond trade.
The DLT based solution for the diamond industry promises to transform it to a Smart Industry with uninterrupted digital inter-connections involving the members in a completely hack safe ecosystem. The blockchain-driven solution offers four critical components of the diamond industry and its associated participants.
Security and Privacy – The protection and isolation of DLT networks is unmatched. Thanks to the immutable nature of blockchain networks, each participant can see the transactions but cannot manipulate the ones which have been time-stamped. This also makes sure that the origin of diamonds can be traced with ultimate perfection within a much-secured ecosystem.
Internet of Things – The implementation of the internet of things within the iota of the diamond market industry would reflect that the industry would have the capability to interconnect the entire diamond network using the most appropriate devices. It will help the network to capture vital diamond information across the entire spectrum of the diamond industry.
Distributed Ledger Chain – The distributed ledger chain is the linked network of verified transactions which ensures the immutable transfer of resources. The distributed ledger would be accessible to all participants of the diamond blockchain ecosystem. This maintains full trust and interoperability among the participants.
Unique tracking of the transactions – Since the blockchain network functions across an immutable continuous distributed ledger, it is mandatory that all the validations are traced back to the source. No transaction would remain disputed from the perspective of authenticity or verification of a single source of truth.
Instantaneous gross settlement – The blockchain-driven settlements are instantaneous monetary settlements that take place across boundaries. Such transactions bypass the traditional banking systems and do not depend on legacy clearance methods which largely depend on paperwork.
With Distributed Ledger Technology, a single source of truth prevails across the network. It is immutable and captures data with pinpoint accuracy. With better-managed data and performance metrics, the diamond industry will flourish significantly with the help of a blockchain-based solution.