Diamonds are now everyone's best friend thanks to Glitzkoin

Diamonds are now everyone's best friend thanks to Glitzkoin - an ICO review

Marilyn Monroe was right in saying that Diamonds are a girl's best friend. Well what girl doesn’t like a big shiny rock adorning her finger? The sparkle of the diamond reflects in the eye of the girl as well. Glitzkoin has other ideas though! They are out there trying to make Diamonds everyone's best friend. Sounds strange? Well they do seem to have the right ideas to marry Diamond trading and Blockchain into a successful marriage.

Why Diamonds?

Why not? Major Diamond producing countries include Australia, the Democratic Republic of Congo, Botswana, South Africa, and Russia. Worldwide reserves are estimated to be some 750 million carats. Australia has the largest reserves, estimated at some 210 million carats. So there's plenty to go around right and should be cheap right?

No. The global diamond mining industry is largely dominated by a hand-full of companies. The top three companies – Alrosa from Russia, De Beers from Luxembourg, and British-Australian Rio Tinto – account for more than 60 percent of global diamond mine production. Mined diamonds are mostly processed in and sold via the major global diamond centers: Antwerp, Dubai, New York, Hong Kong, Mumbai, and Tel-Aviv. In contrast to precious metals, there is no universal market price per gram of diamonds. Nevertheless, global diamond prices have increased more than tenfold since 1960 to the prices today.

Diamonds increase drastically in value through processing from production to retail. In 2016, for example, mined rough diamonds had a production value of some 15.4 billion U.S. dollars. After polishing, this figure increased to 25.1 billion U.S. dollars. In 2016, the global diamond jewelry market value was approximately 80.1 billion U.S. dollars. Nearly half of the world's demand for polished diamonds comes from the United States, with a 47 percent share of global demand in 2016.

So in a nutshell you have a commodity that has enough volumes to go around but the supply is limited since it goes through specific channels

So how is Glitzkoin trying to revolutionize the Diamond trade using Blockchain?

By applying the blockchain technology to the supply chain of the diamond industry.
Create a new trading platform for worldwide diamond trading
Will reduce transaction costs and go green by using blockchain to save paper
Will offer full details of tracking and tracing capability for diamonds
By creating a decentralized marketplace for diamonds it will attract direct buyers and sellers
Integration of third party services like financing, shipping and insurance without additional fees

Long term benefits of such a model:

Glitzkoin will use the impressive Stellar blockchain. It is currently fast and is low in cost per transaction as compared to lets say Ethereum
The acceptance of Glitzkoin model will translate into a bigger reach of the diamond industry
Transparency of process and authentication of diamonds will attract seasoned buyers and first time buyers alike
Absence of middlemen and brokerage fees should bring some portion of the diamond purchase cost

Then there is a solid team behind the ICO