Glitzkoin : A Radical Approach to Disrupt The Diamond Industry

Glitzkoin Utilizes Blockchain as A Game Changer Feature in The Diamond Industry

In the age of blockchain initiation to bring new way of operating records to radically disrupt the way industries doing things, most people in the diamond trade and especially the big names, are aware that DeBeers has implemented a blockchain. Interestingly, a very small percentage of these people understand what a blockchain means and what value we could derive from it.

Regarding the blockchain implementation on the diamond industry, we might hear that DeBeers (famous Group of Companies is an international corporation that specializes in diamond exploration, diamond mining, diamond retail, diamond trading and industrial diamond manufacturing sectors) is doing the same thing as Glizkoin did. Maybe people will preconceive them as the same product but In reality, there is a big difference in the approach of these two blockchains. Once we understand these two concepts, we might come to an agreement that Glitzkoin goes a step further than DeBeers in the context of implementing this latest and most hyped technology (Blockchain).

The idea of blockchains evolved from the concept of a centralized database. The general concept of a centralized database is one server, where validated records are stored and maintained by a single entity. It's easy to maintain but very prone to various attacks and cybercrime activities such as hacking or data stealing. In the case of a blockchain, there are numerous computers (servers) referred to as nodes validating transactions occurred in the network. The information stored on one node is duplicated on every other node on the network hence the terminology 'decentralized' comes from.

From a technical perspective, hacking a single server is not a very big challenge but, things are different with a blockchain. An intruder who wishes to hack a blockchain will need access to every single node and compute the hash iteratively to alter the block of records. It would need a very huge amount of computational resources to be able to successfully alter the records and because of that reason, blockchains are very secure and cannot be altered by using common cyber attack methods (DDoS, brute force, etc).

The DeBeers's blockchain solution is able to store important information for all diamonds (its origin, purity, ownership status, etc) that are registered in the blockchain. The intention is this process will help eliminate fake diamonds and provide a transparent history of each diamond, from mining site to retail shops. Glitzkoin offers the same feature on its blockchain too. The difference is that, Glitzkoin focuses on utility and goes beyond this stage as it provides decentralized exchange with many built in features to make customers more convenient in doing diamond related transactions.

Glitzkoin Advantages Compared to Other Competitors

The Gliztkoin project plan includes a blockchain where complete information related to certified diamonds would be listed. Diamond sellers at all levels could upload their diamond information on to the Glitzkoin blockchain. The platform has a trading feature which means that, anyone could buy any of the listed diamonds. The buyer could be a regular diamond trader or even a novice.

Buying and selling diamonds might sound like a routine activity but, the real magnitude of this facility needs to be understood. In the normal trading process a diamond, moves from its original sellers into a long supply chain structure. A number of brokers pass on the diamond, each one adds a small (or significant) profit margin to the price quoted to the subsequent broker. The final buyer, receives the diamond at a price that is loaded with multiple layers of profit. The original seller never really knows who the final buyer is, he is also not aware of the final selling price to the buyer. Similarly, the final buyer never really knows who the first seller was and the first price quoted at the start.

In the case of the Glitzkoin blockchain diamond trading platform, the buyer and seller ‘interact’ directly with each other. Interestingly there is no personal interaction, decisions are made based on the factual data recorded on the blockchain for each diamond. There are no middlemen in the transaction, the buyer gets good value for money paid.

DeBeers has clearly mentioned that, it does not have any plans to implement a cryptocurrency. In conventional diamond trade, payment is made through banks, currency conversions are required in a significant number of transactions. Bank fees and currency conversion charges are involved, these pile up as overheads to conduct the transaction.

By its very nature, a cryptocurrency does not follow a bank route and paying or receiving this currency, does not require any type of currency conversions to be done. Glitzkoin implements its cryptocurrency and this feature will work to expand diamond markets across the globe.

This report clearly explains the difference between Glitkzoin and other competitors that offering a seemingly similar blockchain based product that is implemented in the diamond industry. The Glitzkoin project is geared towards improving diamond trade in an environment, that would be global, fast moving, transparent and last but not least, very secure.

Please visit https://www.glitzkoin.com/ to invest now !

References
https://glitzkoin.com/infopedia/need-for-change-in-the-diamond-industry-1

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Telegram handle: @richeames
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