Diamond Market Expansion Through Technology


Technology To Expand Diamond Markets

There is no doubt that the global jewelry markets have gone through a tremendous change in the past 5 years. Buyers spend money more carefully, knowledge about gemstones has increased and many style enthusiasts realize that diamonds are not the only valuable glitter. The diamond industry as a whole as seen a drop in sales, the blame is quickly dumped on the buyer. The truth is that sentiments for diamonds as the 'ultimate symbol of luxury' have cooled down.

diamond market blockchain

While much of the above could be true, there is no denying the fact that the age old marketing process implemented in the diamond industry, is in desperate need of a change. So what is so wrong about the present processes being followed by the industry, can technology really resolve any of these issues. To begin with, the market mechanism for diamonds makes room for a chain of middlemen and brokers. The true seller is completely hidden from the final transaction, the final consumer pays a price that is inflated with multiple profit margins. 

And don't forget the problems related to fake diamonds, wrong grade classification and even controversial treatments applied to diamonds. Most consumers are laymen with little knowledge about technicalities involved. The relation between natural diamonds, artificially grown diamonds and worthless pieces of imitations is hard to assess. High prices with padded with brokerage fees and doubts regarding authenticity and value, keep a large group of buyers away.  

Technology now has a solution to many of the problems mentioned above, the main question is whether the diamond industry is ready to make changes to its outdated and inefficient practices. The solution involves implementing one of the hottest technologies of today, blockchain. Put in simple terms, a blockchain is composed of numerous nodes that store important information. The interesting thing is that, every node contains the same data, an entry on one node is simultaneously updated on all other nodes. This configuration provides a high security environment that is difficult to hack or fraudulently penetrate. 

In terms of diamond marketing, the diamond blockchain would serve as platform for trade. Both big and small diamond sellers could list their diamonds, conditions can be fixed to only accept diamonds that are certified by reputed diamond testing labs. Complete specifications including selling price would be entered by the seller. It will not be possible to make changes once an entry is made, this essentially creates a tamper proof record for each diamond. 

Interested buyers can work directly with sellers, no middlemen and no brokerage fees to inflate prices. The fact that each diamond is listed with full details include authenticity certificate number means that, the buyer can confidently make a purchase even with, little knowledge about diamonds. Sellers get access to more confident buyers and the buyer, gets a price that is originally quoted by the seller. 

Still on blockchains, we go a step further and talk about payment systems. Buying a diamond will of course involve the making of a payment, expenses for shipping and insurance will also need to be settled. It is possible to implement a crypto currency on a blockchain, a payment model that will take off the hassles of currency conversions and expensive bank fees. Admittedly, the crypto world is young and yet not fully understood but then, nothing that exists today popped up without a beginning. 

So when you think about the hurdles being faced by diamond traders and sellers remember that, there is help available from the techno sector. It is high time that industry and that applies not only to diamonds, fully support such technology. 

This report is based on the project white paper filed by GLITZKOIN at https://glitzkoin.com/ We are in no way associated with the project and this report is compiled purely for informational purposes. Saw2day has not received any form of payment from GLITZKOIN or any other source.