Glitzkoin: A blockchain enabled solution to tackle fraud in diamond trade

stazhao (61)in #ico • 6 years ago

The introduction of blockchain technology has revolutionized the trading practices and now Glitzkoin is going to change the landscape of diamond industry by combining this technology with supply chain of diamond industry.

The basic concept is to create a decentralized platform that would filter out the middlemen in the industry and would make it possible to establish a direct trust between buyer and seller without involving brokers or intermediaries.

The platform will provide an opportunity to create a decentralized paperless storage of records on blockchain including the origin and all other history concerning each diamond. It will also help in smooth international transactions by removing the hurdles like fluctuating exchange rates and exorbitant bank fees.

Another advantage and that is perhaps the most important feature of this platform, is eliminating the risk of fraud. The blockchain technology will make it impossible to carryout any fraudulent transaction. In traditional diamond trade the seller and end user remain detached from each other. The buyer is never aware of the history of the diamond, no authentic record available about the origin of the diamond. The whole diamond trade depends upon the person to person contact and one has to depend upon the guess work.

Glitzkoin is going to combine all the stakeholders on one platform including the mining companies, diamond polishers, certification agencies, shipping and transportation companies, diamond cutters, whole sellers, retailers, insurance service providers and the end buyers. Therefore, the buyer doesn’t need to depend upon any guess work, the complete history of each diamond would be available on blockchain that would make the whole transaction smooth and transparent. It will also provide theft protection since each diamond can be tracked and authenticated on blockchain and the actual owner is easily traceable.

Glitzkoin will provide peace of mind to the buyer that he or she is buying a genuinely authentic diamond without involving a middleman, the complete record of each diamond is visible and transparent that cannot be tampered with at any stage. The platform will also help in cutting the cost of transaction by eliminating brokerage fees and unnecessary bank charges since the diamond purchase will be done through cryptocurrency.

The whole phenomenon is very straightforward, the diamond buyer will transfer Glitzkoin into Escrow account, after passing through verification the payment in the form of Glitzkoin will be transferred to the seller. The diamond seller will forward the diamond for verification to the platform and after verification the diamond will be shipped to the buyer.

This simple but completely transparent method provides a guarantee against any fraudulent transaction and a theft prevention as well. The platform securely keeps the record of historical data and transactions that makes it easy for the sellers to prove their reliability and authenticity to the buyers and other rating agencies. The easy tracking and tracing back facility helps creating a trust level between the seller and buyer which is a vital part of diamond trade. The historical gap which has always existed between seller and the end user in diamond trade is going to be finally bridged by Glitzkoin.