When you consider the idea of “cryptocurrency markets,” there are many cryptocurrency enthusiasts that automatically think of cryptocurrencies that are the most well-known, or the largest by market capitalization. However, thanks to blockchain technology, there are platforms that can actually for commodities and assets to be traded that aren’t cryptocurrencies. Specifically, a new diamond exchange by the name of CEDEX has just opened, for those wishing to invest in the diamond sector. In fact, $50 million worth of diamonds have already been listed.
There are all sorts of individuals in various industries that have praised the fact that blockchain technology can allow for increased transparency in their sector, and this is especially relevant to the diamond industry. For those who might not be aware, the immense demand for the asset is often fueled by “conflict diamonds”—or diamonds that are mined in armed conflict zones. The concept of “conflict diamonds” was even immortalized in a Hollywood movie starring Leonardo di Caprio titled Blood Diamond.
CEDEX wants to offer a platform that emphasizes transparency with regards to diamonds, where dealers and purchases can connect and enjoy a new level of transparency in the sector. The CEO, Saar Levi, also makes it clear in an interview with Finance Magnates that he believes diamonds are a “new asset class” of their own.
Levi also believes that his platform will allow for the entire diamond industry to grow dramatically, stating that he believes CEDEX can help take the $90 billion industry to new levels. The platform also boasts that it utilizes “advanced machine-learning algorithms” to determine the exact value of diamonds, as well.
This isn’t the first time that the potential of blockchain in the diamond industry has been explored. One of the most well-known international diamond companies in the world, DeBeers, tracked 100 high-value diamonds last year through blockchain.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.