Blockchain for the Diamond Industry: Cost Cutting

“The technology most likely to change the next decade of business is not the social web, big data, the cloud, robotics, or even artificial intelligence. It’s the Blockchain, the technology behind digital currencies like Bitcoin.”

— Harvard Business Review

Blockchain has emerged as an innovation that could potentially revolutionize the way the diamond industry functions. It brings in a new era of transparency and accountability that had until now not been explored in the sector to its full capability. Since most of the documentation — legal as well as related to buying and selling — is done by a pre-programmed computer protocol — smart contracts — it has opened up a new prospect of a benefit for consumers. The removal of middlemen, primarily lawyers, banks, brokers, and several processing units present in the 6–8 stages between the excavation of a diamond and the display window at a retail store, consequently removes the fees they charge in for their contribution to the value chain. This significantly brings down the final price at which the diamond is sold. Enhancement of regulation and reduction of complexity of financial transactions are a couple of other benefits to this.

Of course, the advantage of cutting costs is not limited to just the consumers of the precious stones. It extends to online retailers, the vintage diamond market, insurance companies that cover stolen jewelry and loose stones, and even the law or order departments responsible for countering diamond-related illegal activities.

Read More: bit.ly/2Pfrm6o