Diamonds have been traded for thousands of years and the problems of this industry goes back centuries. High production costs, difficulties with finding the valuer, as well as the fact that precious stones are not available for trading as financial assets. The Blockchain will give this industry a second wind.
ENDO Blockchain protocol can coordinate the whole process by combining into one platform the mining, logistics, insurance and selling companies. This will remove a lot of intermediaries, make the prices lower and attract more buyers. The capabilities of such a platform will not be limited to tracking how the diamonds were mined, sorted and polished, it can also represent the value of precious stones as tokens.
The use of tokens will transfer gems from the category of physical assets to the category of virtual ones and create standardized price benchmarks. Customers will be able to know exactly what they are buying and have a wider investment opportunities – whether to invest in the individual stones or the whole jewelry baskets. Diamond holders can also upload information about their gems in the Blockchain, order expert evaluation and pay it with internal tokens.
ENDO also provides a basis for creation a decentralized jewelry market, that guarantees the authenticity of each precious stone. Data on the 4C scale (carat, color, clarity and cut) will be verified in the Blockchain at the production stage, providing an easy checking procedure to ensure that a gem corresponds to its record in a decentralized network. The fact of owning the diamond by a particular person can be easily proved with the help of a smart contract, by default storing this information in an encrypted form. Thus Blockchain will not disclose any commercial secrets to anyone.
Decentralized infrastructure will give buyers and investors easy access to certified gems, where one can see all the diamond’s journey – from the mine to the store.
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