The diamond industry is simply obsessed with blockchain technology. The reason is simple and logical. The diamond industry has for a long time faced several issues with provenance and transparency. Well, at least today, blockchain promises to resolve several of these problems through a continuous ledger-based decentralized ecosystem. The entire architecture using blockchain promises to act as a beneficiary for the entire diamond supply chain. Thus, it does not matter whether you are a buyer, retailer, miner or supplier; there would be a secured network that will allow you to conduct hassle-free business.
For centuries, diamonds have been a woman’s dream and a man’s status symbol. But, you would be surprised to know that the entire diamond trade is plagued with several problems. One of the biggest challenges comes with the illegal trading of diamonds or the practice of dealing in blood diamonds. These diamond mines have pathetic working conditions and often forced laborers working day and night to trace diamonds. These diamonds are sold in the black market by unscrupulous diamond retailers and use the profit to fund terrorist activities and other ethnic conflicts. At the same time around, modern technology has been unable to find a very feasible solution for the entire diamond industry.
Thanks to Blockchain though! Now the diamond trading ecosystem can trace a diamond’s origin back to its mine! Thus, it would spell the end of conflict diamond trading. Today, Blockchain driven diamond supply chains have complete protection from conflict diamond trading. This has incorporated a very fair ecosystem of trading for the participants in the diamond business.
Another key component or blessing from blockchain comes with the corporate payment solutions for diamond trading. Initially, banks were used as a transacting medium between diamond trading parties. Since diamond is considered to be a high value and high-risk trade, the banks imposed a lot of taxes and delays in diamond transactions. It often required intense paperwork and international clearances to authenticate a diamond trade. With blockchain, payments can be settled within a matter of seconds between willing parties. These transactions are highly secured and cannot be breached by third parties or hackers in the network. All blockchain-based transactions are immutable! Yes; you cannot alter or modify a blockchain-based transaction simply due to the concept of time stamping. Blockchain has come up as a new beginning within the periphery of diamond trading.