Pizza and cheese, peanut butter and jelly, even Sonny and Cher. Yes, some things can only get better when found in combination with each other. The same is true for jewelry and blockchain.
Yet, what makes this explosive partnership such a great one? We previously saw that you could buy luxury diamonds with Bitcoin. So, what is new? What is different? More importantly, why should we even care?
In this article we will be exploring how jewelry and blockchain form the ultimate combination.
Where Were Your Diamonds Sourced From?
You may have been helping terrorists and aren’t even aware of it. Yes, the term “blood diamond” has been thrown around for a long time and for good reason.
A blood diamond is typically a gemstone mined in a war zone. They are then sold to finance terrorism or a warlord’s violent rampage and abuse of human rights. These diamonds are often mined by children and other oppressed members of society.
As soon as jewelry manufacturers cut and polish these diamonds, it becomes impossible to tell them apart from other diamonds. You may be wearing a blood diamond in your favorite piece of jewelry right now and not even know it.
An Effort to Stop the Processing of Conflict Diamonds
In the late 2000s, the United Nations created an accord known as the Kimberley Process. The purpose was to create a transparent model for tracking diamonds, with the hopes of stopping blood diamonds from entering the mainstream supply channels.
This process would allow manufacturers, traders, suppliers, and even end-purchasers the opportunity to view the diamond’s entire history and where it was sourced.
Every step would be documented and certified from the source where it was mined to the manufacturers, and finally, what piece of jewelry it ends in.
However, fraudsters found it easy to dupe the system and falsify certificates. It was only a paper-based system, after all. Despite the Kimberley Process accord, which a whopping 81 countries signed up to, the blood diamond market continued to boom.
Diamonds Went Online With a Blockchain
The Kimberley Process was in tatters, and illegitimate merchants were still profiting from abusing human rights and fooling consumers with their ill-gained blood diamonds.
This sad period stretched long before we could buy diamonds with cryptocurrency. In 2015, however, the future stepped in and started changing things for the better in the jewelry industry.
A company called Everledger partnered up with IBM to create a solution to stop the trade of blood diamonds once and for all.
How were they planning on stopping the rife corruption and fraud seen in the diamond industry? By developing a specific blockchain for diamonds.
Wait, What Is a Blockchain, and How Did it Help Save Lives?
A simple way to understand a blockchain is to think of it as a giant community-driven ledger. This ledger records a list of transactions that are maintained and even updated simultaneously on hundreds of computers.
Each record in this blockchain ledger is linked in such an intricate manner that it is impossible to change the previous records without breaking the entire chain. Not even the creator of a blockchain can alter the records stored in it.
This blockchain also isn’t owned by a single company. Instead, it is driven by the community, making it an ideal, secure platform for intercompany users.
This transparent, valuable recording tool is excellent at identifying the sourcing of an item and then tracking its path through processing, manufacturing, and ultimately to the customer’s hands.
Putting a Stop to Conflict Diamonds With Blockchain Technology
Everledger’s new blockchain technology was the ultimate tool in tracking diamonds. Artisans and retailers can track the pedigree of their jewelry from source to the present. Their blockchain also made it impossible to falsify any records.
With fewer opportunities to commit fraud, blood diamonds are facing an incredible challenge to make their way into the hands of unsuspecting consumers. Today, Everledger stores 40 metadata points on each of the 1.6 million diamonds recorded in its blockchain ledger.
This ledger is constantly growing as ever more diamonds are being recorded in it. The result, though, is an overwhelming success. Blockchain technology changed the diamond landscape, but it won’t be the only time or industry where blockchain technology has a major impact.
Auction Houses Started to Accept Cryptocurrency in Payment
The renowned auction house Sotheby’s just sold a gigantic 100-carat diamond in exchange for Bitcoin. This luxury diamond was the second-largest to have ever graced the public market, and a clever, anonymous cryptocurrency investor purchased it.
It wasn’t long before more auction houses and art dealers started accepting cryptocurrency in exchange for high-end luxury goods. Yes, today, you can use cryptocurrency to pay for jewellery, wine, and fine art, among other goods.
Once again, blockchain technology proves its value by tracking and recording every movement made by these sought-after luxury items.
A Future Made Secure by Transparency
There is no doubt that blockchain technology is here to stay. It has drastically changed our world. Blockchains and cryptocurrency go hand-in-hand, an ultimate partnership that enables a transparent, secure future for users, including the high-end luxury goods market.
Buying Luxury Goods With Cryptocurrency
So, can I buy loose diamonds with cryptocurrency? The answer is a resounding yes. With the blockchain ledger, you can trace your diamonds from their source right to your hands.
As more and more retailers start to adopt secure cryptocurrencies as a legitimate form of payment, our options for spending our hard-earned crypto-cash increase. So, you don’t have to ask, how do I pay with cryptocurrency anymore.
Find that ultimate retailer that accepts cryptocurrency, and you can start investing in high-end luxury goods.
An Investment That Is Built on Transparency
Investing in high-end goods has never been simpler. Sotheby’s changed the world when they became the first retailer to accept Bitcoin for one of the biggest luxury diamonds ever. Today, we too can invest in the luxury diamond and jewelry market.
The market is well-regulated, better than ever before, thanks to blockchain technology. Various retailers also now accept cryptocurrency. The path to our next investment is wide open. All of this is thanks to great partnerships and fantastic combinations.