How Jewelers are Bringing Diamonds On-Chain
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As blockchain technology develops and matures, we are seeing more and more industries adopt it into their practices. In recent years, this space has moved far beyond the confines of FinTech and has found itself in a myriad of different businesses. One of which is the precious metal and diamond trade.
Many companies have found that blockchain and web3 technologies can help streamline and accelerate this industry across multiple areas. This includes logistics, distribution, sales, and even creativity. Let’s take a look at some examples of how this is being done.
The Intersection Between Blockchain and Luxury
One of the biggest names in jewelry to collide with blockchain is Tiffany & Co., who recently made headlines for selling out their NFT collection less than 30 minutes after its release. For 30ETH, CryptoPunks holders will be able to commision a bespoke physical gem and diamond encrusted pendant representing their NFT, made by Tiffany & Co. Not only this, but customers will then be given a separate NFT depicting their pendant in their crypto wallets. These are being referred to as NFTiffs and cost a pretty penny of 30 ETH.
Another major player in the diamond trade exploring this space is De Beers. This year they announced the world’s first blockchain-based diamond source platform, named Tracr. This is a distributed network designed to offer accurate and tamper-proof logistical data on the sourcing of diamonds from around the world. The aim is to provide greater transparancy within the trade, and offer more information to consumers. Not only this, but the use of blockchain technology also helps tremendously with authentication, as each diamond can be properly tracked back to the original space they were found in. This means there is no room for lying or misleading buyers.
NFTs appear to be the next frontier for luxury brands as businesses fixated on authenticity and exclusivity begin to see the potential this space holds. Gem Set is no stranger to the movement and is currently paving the way for the future of digital luxury after recently launching the presale of its premier NFT collection. GemSet is a 10k Generative NFT collection that is associated with real physical diamonds. Undoubtedly, because the NFTs themselves are artworks created by renowned South African artist, Johnathan Schultz, whose use of diamonds and precious metals within his pieces has acquired critical acclaim. Most recently, Schultz showcased his masterpiece of a fingerprint made up of over nine thousand diamonds set in 18k white gold during Art Basel Miami Beach. The diamond fingerprint is touted as one of the largest diamond art pieces of the 21st century.
The Future of Luxury
These are three of the major ways that the diamond industry is getting involved with blockchain technology. These companies are currently at the cutting-edge of their field, bridging the gap between decentralized tools and the world of luxury jewelry. In essence, the fact that such a lucrative and sought-after industry is jumping into the blockchain space is a sign that the technology has reached a sufficient level of maturity, spelling great news for the future. This marriage of fields is bound to bring a myriad of innovative and creative options to high-end consumer market.