The discussion regarding the utility of blockchain and the effect of blockchain on the jewelry business will continue with narratives and counter-narratives. There are several advantages of blockchain which has given it the edge over other technologies that will rule the market. There are several pain areas of the jewelry industry which has affected the entire supply chain for decades. Right from the provenance of the gemstones to the authenticity of the transactions, the blockchain technology has paved the way for a new wave of change or transformational experience.
What was missing in the jewelry and gemstone value chain?
The gemstone and jewelry industry always had to rely on mutual trust and unverifiable trust networks. These platforms always had loopholes which were enhanced significantly by the growing volume of trade. Plus, gemstones like diamonds always faced the scanner regarding their authenticity, origin and pricing model. Then the problem of payments which generally involved a significant amount of paperwork became a major hindrance to the growth of the trading ecosystem.
What is so special about Blockchains?
The decentralized non-single point failure models made blockchain one of the most sought after platforms to cater to the requirements of the jewelry and gemstone industry. Blockchain assures a very robust supply chain management based infrastructure with strong backing towards security. Thus, the participants can rest assured of the capability of the blockchain to secure a trading infrastructure with maximum effect.
What are the assurances from the end of blockchain?
The quality assurances offered by blockchain are inclusive of several features and facilities which would be exhibited in the form of assurances for the participants in the entire supply and delivery chain.
- A robust secured architecture without any chance of single-point failure – Blockchain implies a decentralized architecture. The very concept of decentralization comes with a major boon for every participant. Along with being full proof against single-point failures, it would also be offering time-stamping of transactions. This practice brings about immutability and makes the entire ledger history open in front of the participants. However, none would be able to change transactions which have already been time-stamped. Thus, the concept of ever ledgers becomes possible with blockchains. Blockchain ensures that nothing remains untraceable in a given network.
- A robust ecosystem where there is complete transparency of all transactions going back to the origin and source in particular – The blockchain networks ensure trust chains. One can easily trace a piece of jewelry or gemstone to its source of origin. This confirms the authenticity of diamonds and other gemstones.
- The paperless transactional pattern where banks and other financial instruments are bypassed to create the best experience for the traders, buyers, sellers and other network participants – The complexity of extensive paper works have always acted as a hindrance to the very growth of the jewelry ecosystem. Blockchain facilitates instantaneous paperless transactions between willing parties.
Blockchain assures quality and implements very high standards of trust and transparency in the jewelry trust, supply and value chain.