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Singaporean Diamond Traders Will Soon Use Blockchain to Verify Orders

Singaporean Diamond Traders Will Soon Use Blockchain to Verify Orders

Singaporean Diamond Traders Will Soon Use Blockchain to Verify Orders

Singapore Diamond Investment Exchange (SDiX) has announced its partnership with two blockchain startups Kynetix and Everledger to develop a blockchain-based platform that will be utilized to verify diamond trades.

According to the official announcement of SDiX, the three companies have completed the development of a proof-of-concept blockchain platform through the utilization of Everledger’s blockchain infrastructure. With commodity digitization firm Kynetix, Everledger and SDiX aim to test the blockchain platform during the second phase of development.

For SDiX and trade settlement firms in general, flexibility is the key component as exchanges are required to settle millions of data points in order to verify, approve and confirm the completion of orders.

Linus Koh, the CEO of SDiX, emphasized that each order processed by the blockchain trading platform of SDiX will be automatically updated in real-time through the creation of permanent cryptographic proof and time stamps and signatures that can be verified by both diamond traders and brokerages.

In a statement, Koh noted that the implementation of blockchain technology is an important part of the company’s long-term vision and strategy to instil confidence and trust between the exchange and Singapore-based diamond investors.

He explained:

“[Blockchain technology’s capability demonstrates] how we can further instil confidence and convenience for the benefit of diamond investors and financiers.”

Since 2015, the development team behind Everledger focused on the development of blockchain technology as a fraud prevention technology and data maintenance protocol. Two years, ago, Everledger CEO Leanne Kemp told Techcrunch in an interview that the early-stage startup was focusing on securing diamonds within an immutable blockchain network by embedding various data sets such as serial numbers and metadata points of diamonds.

“If you have a 5 carat diamond, not only do we capture the serial number that’s inscribed on the stone, but most diamonds are described with four Cs (the cut, the clarity etc). We taken not only those four Cs, we then take the 40 metadata points that make up the diamond. The laboratory houses inspect the stone, they effectively digitize each of those diamonds… All of the angles and the cuts and the pavilions and all of the crown. And we take all of that, as well as the serial number, as well as the four Cs, and we put all that into the blockchain,” said Kemp.

For over two years, the development team of Everledger solely focused on the implementation of blockchain technology in the global diamond sector and introducing commercial applications developed on top of its blockchain infrastructure to ensure diamond trading platforms and brokerages are provided with secure yet transparent blockchain-based platforms.

Diamond exchanges and large-scale companies such as SDiX have collaborated with Everledger due to its secure infrastructure and its participation as one of the member companies of the Hyperledger Foundation. Blockchain infrastructure providers and multi-billion dollar companies within the Hyperledger Foundation are leading the development of both public and private blockchains.

For companies like SDiX that require highly flexible blockcahin-based platforms and fully compliant protocols, private blockchain platforms developed by companies such as IBM, Intel and Everledger have proven to be efficient.

Author : Joseph Young

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

blockchain technology Everledger Singapore