Non-fungible tokens (NFTs) could stop diamond certification fraud by making it easy to track the authenticity and origin of diamonds in a way that can’t be changed. An NFT is a digital token representing a unique asset, like a digital work of art or collectable. In the case of diamonds, an NFT could be used to represent a specific diamond and store information about its origin, quality, and other features. NFTs can keep a safe, unchangeable record of how a diamond got from the mine to the buyer by using blockchain technology. This can stop scams and help people understand what’s going on. For more details go to the official platform.
Even though it is said that diamonds are a girl’s best friend, the diamond business, which is worth billions of dollars, is unfortunately full of fraud and controversy. A few times, diamonds made in a lab were given the same quality rating as those from the ground.
Also, customers can send a diamond back to the GIA at any time, for any reason, to have it re-evaluated. People often call this kind of service “follow-up.” Even though you have to send in your old GIA report to get a new one, diamonds can still have more than one grading report. Because of this, there is a chance that customers will only get the original certifications when they buy diamonds.
NFTs as the only source of the truth
More and more often, diamond certificates are being used to cheat people. The Diamond Charter, made a year ago, shows that some places, like India, have even built new systems to deal with fraud.
After that, NFTs can only be used to buy these stones by people who have been personally invited. Moldawsky says that each participant can only buy one diamond NFT for 4.44 Ether ETH. The weight of the diamond will be between 0.4 and 0.8 carats, but the price won’t change.
After an NFT is bought, a smart contract will post the diamond’s GIA certificate to the Ethereum blockchain. This will show that the owner is the one who should own it.
Moldawsky also said that NFT owners could use the Diamond Dawn website to make a real piece of art with a GIA-certified diamond in it. This is because there are now many more NFTs with physical counterparts.
He said that at the end of the day, it was up to the collector to decide whether or not to burn the virtual diamond and turn it into a real one.
Will NFTs replace traditional diamond certificates in the long run?
Even though it might seem like a new idea to use NFTs as digital diamond certifications, it is still not clear if this will catch on with the general public or not.
Even though this could be true, it is important to know that GIA is open to the move to digital. The Gemological Institute of America’s (GIA) head of communications, Stephen Morisseau, told Cointelegraph that the GIA would start putting all of its gemologica lab reports online in the first quarter of 2019. He said that this should all be done by the year 2025.
Morisseau said that all printed GIA reports have different security measures, and he emphasised that any report’s information can be checked using the secure online GIA Report Check service. All printed GIA reports have these security features. The greatest trading bot, trusted by millions of traders, is Bitcoin Smart. This exchange is a great place to buy and sell digital currency.
Once big-name merchants start using the technology, NFTs may also pick up speed and become more common in the diamond business. De Beers, for example, is using the Tracr blockchain to find out where its diamonds were mined.
Taylor is a freelance SEO copywriter and blogger. His areas of expertise include technology, pop culture, and marketing.