A trusted exchange to buy/sell high-quality diamonds - CEDEX
Even though diamond is a precious gemstone that is widely used in jewelry, it is not considered as an asset because it is not fungible like Gold. i.e You cannot simply exchange or replace one diamond with another as every stone is unique. Unlike Gold, the price of diamonds is not uniform worldwide and is mostly decided by the seller. Because of the low liquidity, diamond market is considered as a one-sided market which doesn’t provide any option for the buyers to resell the diamonds. To make diamond an asset like Gold, two things need to be done which are given below:
- Create transparent pricing for diamond and convert it to a fungible asset like Gold
- Creation of a trading platform which will help buyers/traders to resell their diamonds so that the market will be two-sided instead of the existing one-sided market.
To achieve the above two goals, CEDEX a new blockchain based diamond exchange is under development. The main objective of CEDEX (Certified Blockchain Based Diamond Exchange) is to transform diamonds into an asset like Gold. For that, it is building the four main pillars of the CEDEX platform as given below:
- Tokenization: For every diamond, a new smart contract will be created with the information about ownership, trading history, and gem composite.
- DEX: DEX (Diamond Exchange) is the proprietary algorithm of CEDEX that will be used for evaluating the value of diamond instead of using the existing 4C (Color, Cut, Carat, Clarity) method. The algorithm uses three main factors for diamond evaluation as given below:
- Gem composite: The score is calculated based on analysis of more than 20 characteristics of the diamond. Data for the analysis is obtained directly from the GIA (Gemological Institute of America). More score, more perfect diamond.
- Parallel Trades composite – Here, the value of a gem is compared with similar gems in the same category. This analysis is helpful to find the average price of the gem in a category. It also considers the rarity of a gem while evaluating the value.
- Diamond Indices composite – This indicates the direction in which the diamond market is progressing.
- Exchange – A blockchain based exchange will be developed to connect the gem owners and traders for making the transactions in a flexible manner.
- CEDEX coin – A new cryptocurrency that will be sold by the platform during its token sale event. These coins will be used to buy a diamond from the CEDEX exchange. Check out https://cedex.com/ to know the latest updates about the token sale event and the sale procedure.
Based on the analytical data of a diamond, the investors can easily find out which diamond is worth the money. Also, CEDEX exchange will list only the diamonds that have the GIA certificate which will ensure the reliability and trust of the gemstone as well the seller. In a nutshell, CEDEX aims to create a transparent diamond exchange that can be used even by the buyers who have zero knowledge about diamonds. To read more information about CEDEX, please check their official whitepaper https://cedex.com/img/Whitepaper.pdf or join the Bitcointalk discussions.
I read it for the first time about the CEDEX diamond exchange.
I can say with certainty that this has great prospects for development. Diamonds have long been considered precious stones and are of high value. But they are used in the fundamentals as a jeweler's value, they are used as products. If we take in comparison a more liquid asset - gold, then it can be bought and resold profitable and easy. With a diamond this can not be done. Trade in diamonds causes certain difficulties and is therefore considered illiquid.
CEDEX is changing this for the better, so now the diamond can be a liquid asset. Each diamond will have a quality certificate and is tested. So now their sale and purchase will become safe.
To know more information you better go ahead and official site.
CEDEX is a promising exchange
Exceptionally fascinating undertaking, I want to see coins with physical tasks since you have a genuine communication with the coins and items.
Thank you @max1994
Welcome @danizaharie
Please @danizaharie check my profile please
On your last post, I was not sur about this ICO, but after reading the whitepaper, it's true that blockchain technology can simplify diamond trading. It a world completely different with its own rules and knowledge (how a diamand worth ? type, imperfections...). It's good thing to simplify investments for common man like me in diamond with Cedex. Thanks @danizaharie for introducing me this project.
CEDEX is really cool technology. How easy, open and transparent it is to invest or trade in diamonds through CEDEX.
The CEDEX Exchange enables anyone to invest in individual diamonds, shares of a high value stone or shares in a basket of diamonds. The CEDEX enabling people to liquidate and invest in diamonds like any other financial asset, in a transparent and secure way. Thanks to the CEDEX. I really appreciate your blog for sharing cool technology and information.
Thank you so much for sharing this very useful and informative article about CEDEX @danizahrie.
Very interesting project, i love to see coins with physical projects because you have a real interaction with the coins and products. Regards
2 sided market instead of the one side that is in place actually was what attracts me. We love assets, virtual things that are linked to assets is more than just a trend. Look at cryptokitties, just because it was linked to an actual asset (in this case a drawing of a cat), milluons if peoplefot attracted to them...and they are cats drawings! Thanks for sharing
It looks like CEDEX has a great solution for the diamond market, which is not complicated at all. It's a pity that the price of diamonds had such a big difference for ages in different parts of the world. CEDEX promise to fix this problem and make the same price everywhere. It means that the price of diamonds will be afortable for many people and it's value will be more stable. Great job CEDEX!
So, giving away the 4C method was surprising !
CEDEX is planning to make diamond prices transparent and turn it into a gold like asset !
But I wonder how much success they are going to bring.
Because trading with individual diamonds, I don't see how can the trades be equal.
Although I understand that it will help traders gain confidence in buying and selling who doesn't have ideas how this platform works.
But won't be there some mismatches or corruption in the tradings ?
beautiful sights, natural lighting
Nice post danizaharie. upvoted! please take 10 seconds of your time to upvote me. Thanks!