Glitzkoin: Making diamond trading crystal-clear

Valued higher than gold and platinum, brilliants and diamonds have always been a great option for investment. Over 10 mln people from all over the world are involved in the industry and the stages of obtaining them, not mentioning millions of potential and loyal buyers. Global diamond jewelry sales continually grow, but the industry itself isn’t evolving. The modern diamond market isn’t devoid of drawbacks, such as:

• need for a higher transparency and new solutions for reliable and forge-proof data storage;
• high commissions of middlemen and appraisers;
• the need for person-to-person contact for diamond purchase.

Blockchain & diamond industry – what’s the connection?

Just think how many processes are required to be completed for diamond transactions – evaluation, certification, transportation, insurance, tracking and so on. The information they is documented and stored in paper, but what if it gets lost? Another problem here is the fact that all these services are performed by different companies, so the seller should keep tabs on everything, which is time-consuming. With the introduction of the blockchain, the modern approach to data processing and storage has changed dramatically, and it couldn’t leave the diamond market untouched.

Glitzkoin project is among the pioneers introducing the most advanced blockchain technologies in the diamond market. It offers a special enironment for global diamond trade and reduces the cost of transactions.

What is Glitzkoin?

The main aim of Glitzkoin is to improve the diamond marketplace and make it accessible for both buyers and traders. Thanks to some advanced features, the trade process doesn’t involve caring about extra services such as insurance, appraisal, and delivery – they are performed by other companies, but the platform integrates them together without charging users.

Glitzkoin team chases the following aims:

1. Connecting retail customers with stakeholders from mining corporations.
2. Blockchain-based tracking of stones with certificates. Thanks to authentication, thefts can be prevented efficiently.
3. Introduction of trustless interaction between traders – the communication is transparent, as well as the information stored.
4. Use of extra services is performed by third-party companies.
5. Reduction of time required for processing of trading.

Therefore, the ecosystem will facilitate the settlements involved in transactions, making trading 100% transparent and secure.

How does it work?

In its core, the procedure of trading won’t be changed, however, Glitzkoin makes it much easier. Using Stellar blockchain, it turns diamonds into assets. The platform is applicable on all stages of trading and introduces several great features.

Appraisal by Artificial Intelligence

Glitzkoin’s proprietary machine-learning algorithm is responsible for the appraisal process. It combines gemological data, financial indices data, as well as global inventory information and analyzes it and ranks the stones and predicts their perspective cost.

By the way, the stones will be certified in the testing labs trusted by Glitzkoin – the document and the blockchain ledger will mention its physical characteristics and price.

Smart contracts

Since diamonds in Glitzkoin will be represented as assets, the smart contracts make up for the possibility of this asset being owned by several buyers. The shared ownership will be ceased only when the transaction for the physical delivery will be made. With the physical delivery of a stone, its certificate will be audited.

The details of the transactions of diamonds will be mentioned in the blockchain ledger, as well. Here we should mention that a buyer doesn’t have to be savvy in the sphere of jewelry and precious stones to define the optimal price and real value of a stone – everything is mentioned in blockchain ledgers – therefore, the limits for purchasers are erased. The buyer can request delivery of the precious parcel: as soon as it’s finished, the smart contract will be closed.

Bottom line

Although Glitzkoin seems to be a very promising project, it’s similar to other existing platforms, such as CEDEX. The team has prepared the scheme of how it should work, and it seems to be flawless. Since the minimal crowdfunding goal has been reached, Glitzkoin has all chances to make its way to the big diamond market. It can be the easiest and the safest way to buy diamonds and track their location. However, since no beta-version has been launched yet, it’s hard to predict whether the project will be truly demanded. Traders and buyers have got used to the traditional face-to-face transactions, so the project needs to involve the existing well-established traders and companies to enroot its positions and attract audience.

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