How the Distributed Ledger Technology will transform gem and jewelry trade

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How the Distributed Ledger Technology will transform gem and jewelry trade

The gem and jewelry industry has always sought elucidations which would completely transform the way it conducts business. In spite of being one of the highest revenue generating platforms of the world, this industry is plagued by several problems. Right from the issues of genuineness and the swiftness of transactions to the trust quotient of customers, blockchain technology resolves everything. The readers might wonder how a new technology has the capacity to transform the complexion of a legacy based system. The actual secret lies in the architecture of blockchain technology which relies on a single source of truth. That ever continuous source of truth is immutable, continuous, irreplaceable and unparalleled in terms of security.

There are certain aspects of blockchain technology that are transforming the face of the gem & jewelry industry. Let us have a detailed discussion as to how the entire industry will respond to a blockchain-based transformative model bereft of any centralized command and control.

Only a professional jeweler can state the fundamental difference between authentic gems and jewels. The growing fakes and the high amount of mistrust in the market are playing a major role in affecting the overall revenue being generated. Today, the entire gem and jewelry industry is set for a major transformative experience. Thanks to the distributed ledger technology:

Buyers can get detailed information about every gemstone or jewelry purchased – Imagine a buyer purchasing a gem or jewelry from the store. The store owner would issue the receipt and also give those items actual id registered with the blockchain ledger. By logging in, the customer would be able to trace the entire history of the product right from the point of procurement of the gem. This would incorporate complete transparency within a business ecosystem.

The actual pricing set by the seller can be verified – The price recorded in the blockchain network carries significant value especially due to the authenticity of price values recorded by the blockchain ecosystem.

The stamp of authenticity would be simply unchanged with the changing hands – The mark of authenticity is stamped in the blockchain network with the date, time and manufacturer stamp in case of jewelry. In the case of the gemstone, the date of mining and along with the date of commercialization with accurate carat measurement and proposed market value.

There would be a single verifiable truth that would prevail throughout – The source of truth remains unchanged since the blockchain network is immutable. The customers, sellers, miners, freighters, forwarders and other key players of the supply chain can participate in the entire journey without any hassles and interruptions of any sort.

The entire gem and jewelry ecosystem would get a significant amount of boost with the commissioning of blockchain-driven networks.

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