We have been hearing a lot about diamonds, blockchain and cryptocurrency in recent months. Discussions often center around DeBeers, the Sotheby’s auction house and DiaEx. To start with, all these entities relate to diamonds. Sotheby’s of course auctions much more than just diamonds.
Glitzkoin does not consider Sotheby’s or DeBeers to be our competitors. The concepts used in all three cases are distinctly different. We explain each of those concepts in brief in this report.
DeBeers was at one time the nerve center of diamond trade, it no longer holds that position but, that is matter for another story. Important to our topic is the fact that, DeBeers did start a project that used blockchain to record the history and features of diamonds. Using more professional vocabulary we would refer to it as – tracking and tracing diamonds. An important observation here is that, diamonds are not bought or sold over the DeBeers diamond blockchain. So here is a case where, we have blockchain but no cryptocurrency.
Sotheby’s is another interesting case study where, cryptocurrency made an appearance in a diamond auction. In the second week of July 2021 Sotheby’s made an amazing announcement. The auction house had just auctioned a 101 carat diamond for, 12 million dollars. The crypto world was both pleased and dazed when, it was revealed that the ‘mystery’ buyer, paid for the diamond in cryptocurrency! For all you diamond lovers who wish to know, the diamond was named ‘The Key 10138’. As is the case with most luxury auctions in recent times, the identity of the winning bidder was not disclosed. The point is that cryptocurrency as a mode of payment, was limited to this specific diamond auction. While cryptocurrency might feature in future auctions conducted by Sotheby’s, there has been no generalized statement from the auction house.
DiaEx the diamond trading platform from Glitzkoin, incorporates blockchain and cryptocurrency in its function. Conceptualized as part of the Glitzkoin project, DiaEx was developed using blockchain technology. The platform aims to improve efficiency and market scope, for the $90 billion diamond industry. It supports B2B and B2C trade in diamonds. The GTN crypto token which was launched, as part of the Glitzkoin project, is the designated mode of payment on DiaEx. It is easy to see that DiaEx is very different, from the Sotheby’s and DeBeers cases explained above. DiaEx is built on blokckchain technology and cryptocurrency (GTN) is the only, mode of payment accepted on the platform.
There is little doubt that, usage cases of blockchain are growing at a rapid pace. It should also be clear now that, cryptocurrency need not necessarily play a role when blockchain is involved. DiaEx is expected to become a common name in the diamond industry. No surprises given the fact that, the Glitzkoin project is promoted by a second generation diamond veteran. Supporting diamond trade at both B2B and B2C levels, DiaEx is expected to have a wide user base.
GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token. The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry.
The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.
The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform. This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases.
Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.
Related Resources: [Project Updates]