Have you ever bought, sold or traded anything? Of course you have and you either used, money, a credit card or traded something in return to make sure the transaction went smoothly. The reason the system works is because when you buy or sell something, you trust that you are either going to receive payment or the product you are purchasing.
When you go online to purchase an airline ticket for your dream vacation you use your credit card without evening thinking about the process involved. Why is this? You never meet or speak with anyone at the airline or travel agency; nonetheless, you are confident and trust that the airline will have a seat waiting for you on the plane when you arrive for you flight.
The same thing goes for the airline. They keep a seat open for you on the plane even though they have never met you and you didn’t physically hand them the money. How is this possible?” TRUST!
You trust that the airline exists and will provide you with a flight and they in turn trust that your payment will go through with the financial institution because you trust the system and it’s guarantees. There is a trust that seller is going receive his/ her money and the purchaser is going to get his/her product or service.
Would it surprise you to hear that blockchain technology does exactly the same thing? The difference is that blockchains deal directly between the buyer and seller without the need for an intermediary.
What this means is that there will no longer be a need to use online travel sites or agents and bank or credit cards. This reduction in middlemen stands to increase efficiency and reduce transaction costs dramatically.
Blockchains also have the potential to reduce the time gap to complete a transaction from days to seconds and could probably do it instantly. Allowing for instant confidence for both parties as a byproduct of “Technical Trust” would negate the need for “traditional trust” reducing transaction time and costs.
How Do You Know Blockchains Are Secure?
Blockchains use cryptography, which basically encodes all transactions so you can’t really see what happened but you know it happened. It’s like a giant digital ledger or accounting system that tracks things being traded. But rather than using one company the ledger is owned and shared by everyone.
It uses a cryptology mechanism that takes the product you are trading and randomly associates letters or numbers to the product so nobody can track the information.
With Blockchains you don’t need a store and you don’t need to know the other person. More industries are realizing the benefits of blockchain technology and the trust it provides. The diamond industry is no exception.
GLITZKOIN is implementing a diamond blockchain platform to leverage blockchain technology for diamond trading. We believe that a decentralized diamond supply chain will lead to more secure and efficient transactions that will be easier to track and trace.
GLITZKOIN has a seasoned professional diamond team with decades of diamond industry experience and they have partnered with a strong technology team and will use, the Stellar based blockchain to develop this state of the art diamond trading platform.