The global diamond market size was pegged at roughly US$87.31 billion growing was predicted to grow at a CAGR of 3.0%. The main reason for this forecast is the increasing demand from emerging economies in the Asia Pacific like India & China. In a survey conducted by Bain & Company in the year 2020, it was noted that Diamonds continue to be a gift that everyone looks forward to and is a key to happy occasions like a marriage. In fact, the study also points to consumers who have said that they would spend equal or more amounts on diamonds post-pandemic which shows that diamonds have a strong emotional connection.
For every valuable object in the world, there is a record of ownership. Vehicles have the Department of Motor Vehicles, Homeowners, have the Property Registry office tracking provenance. But when it comes to Diamonds, there is no global registry where the ownership of diamonds could be attributed. Details of the manufacturer, retailer, or for that matter the purchaser of the diamond are not really captured cohesively. A global registry would help consumers know that the diamond on your finger is ethically sourced along with its origin & movement through the value chain.
What the industry needed is a cloud-based trustworthy, the global system of record for precious stones such as diamonds to prove the origin and ownership from the mine to the finger. A solution that not just addressed manufacturers & wholesalers but everybody in the value chain including retailers and consumers as well. To ensure that the value of the diamond, its provenance etc., was clear to the manufacturers, retailers & consumers, NetObjex came up with the following solution & built GemIdentity:
GemIdentity’s objective is to help create and maintain value for precious stones through a unique set of tools and technologies to engender trust, provide traceability and promote transparency. A state-of-the-art platform from NetObjex for the Gemstone Industry to share data, helping businesses to deliver superior consumer value by providing customers with insights on their diamond’s origin, quality and history.
By registering a diamond, GemIdentity ensures there is an immutable record of who the owner of a diamond is.
The origin of a precious stone is essential in understanding it has been sustainably produced and its quality guaranteed.
Assuring the value of the precious stones through integration with GIA certificates and laser inscription.
The life of a precious stone is captured to give insights on its journey.
We issue an NFT token for each diamond. When ownership changes the new owner will have the NFT token. The holding of the NFT is a proxy for ownership.
The NetObjex Digital Asset platform forms the core backbone for GemIdentity
Consumers: Consumers benefit in two ways. With the Virgin Diamond they have the assurance of owning a first-hand diamond. With GemID and GemChain they benefit from having a unique identifier for their diamond stored in an immutable ledger – A single source of truth. Retailer: Retailers can attract traffic to their stores by participating in this ecosystem to enable consumers with diamonds to help them register these gems on GemChain. They also benefit by getting a percentage of the fee collected from a consumer when a diamond is registered on the blockchain. Manufacturers: Manufacturers can increase the value of their diamond(s) by marking them as a VirginDiamond (similar to ForeverMark ™). They also benefit by geting a percentage of the fee collected when a diamond is registered on the Blockchain.
Consumers pay $50 (baked into Retail Price) when purchasing a new diamond in order to create a GemID record on the GemChain. Consumers also pay $50 to place an existing diamond they own onto GemChain. When one Consumer transfers ownership to another Consumer, that change of record will also involve a $50 fee.
*= if entity participates in the value chain involving Consumer ownership transfers only
Each member pays $10000 to join the consortium and operate a node and participate in voting and validation of transactions. Each member pays $5000 for subsequent years to participate as voting member. For each transfer of ownership at the consumer level, Node Operators receive $1 if their node is involved in an ownership transfer validation.