Jewelry quickly wears out and loses its appearance, but precious stones and metals never age and don't go out of fashion. If the way to the heart of a man lies through the stomach, then to woman heart through a ring with a stone. Any girl at least once in her life wants to be a little princess. If you think that it's just whims — then you are deeply mistaken. Diamonds are the best investment, the money should be invested in something ageless and indestructible — in jewelry.
The existing diamond trading market is closed and based on personal contacts between the seller and the buyer. As professionals say, you first need to evaluate the seller and only then his stones. And even this doesn't give any guarantees. In such circumstances, reputation and trust are the basis of successful trading. This state of affairs has attracted many scams trying to sell counterfeit, disputed or defective diamonds. The closed and specific nature of the market hampers its development, standardization and transparency. The situation needs to change.
Tasks Of The GLITZKOIN Blockchain Platform.
Creating a global platform for the diamond trade, developers solve the following tasks:
- turning diamonds into an investment asset, like raw materials or commodities;
- integration of all market participants into a single ecosystem;
- track the history of each diamond;
- entering all diamonds parameters in the unified register and simplification of certification;
- protection against theft, forgery and fraud;
- facilitation of buy/sell transactions between participants;
- providing an opportunity for any person to buy or sell diamonds;
- establishment of a standardized, transparent and safe diamond trading mechanism.
What Will Be The Way To Achieve These Goals?
To create a platform, it was decided to use the Stellar network, which will provide good scaling, reliable storage and transparency of information.
The blockchain technology doesn't provide for the peculiarities of diamond trading. It's that, for example, the characteristics of the diamond, its history, rating and price should be publicly available. Information about the purchase, the transaction amount and other financial characteristics cannot be accessed without special rights.
To do this, either zk-snarks (zero-knowledge proof) or bulletproof (mask that hides the amounts and leaves open the sender and recipient addresses) will be used.
Operation Algorithm of The Platform.
A smart contract is created for each diamond listed on the exchange. It describes all the gemological characteristics of the stone and its cost. The system will use machine learning to generate fair diamond prices.
After creating a smart contract, the diamond deposited in the exchange is physically moved to the guardian's storage. If the buyer wants to take the stone for storage, his smart contract is removed from the exchange.
In fact, the exchange carries out trade in diamond smart contracts. Two schemes are used:
- One stone, one contract.
- One stone - several contracts.
In the latter case, this situation occurs when diamond value and its partial purchase is high. The same type can be used to create a diamond investment basket.
The GLITZKOIN project is created by experienced professionals. Due to the specificity of the diamond trading market and its capitalization, its opening to new investors promises interesting prospects for all participants and the industry as a whole.