Blockchain technology is hitting the market and almost every industry including jewellery is trying to jump on the bandwagon. The jewellery industry has always faced a lot of challenges and it has been a great headache to track the movement of a jewel in the opaque supply chain.
As blockchain technology is incorruptible, enforces transparency, and tracks movement of jewels, a number of businesses across the world have started using it. But, the technology offers a lot more than just traceability. Integrating blockchain in the supply chain is beneficial for jewellers, retailers, dealers, and collectors alike – here’s why!
Assurance From the End of Blockchain Technology
Blockchain offers multiple benefits that exhibit in the form of assurance for people in the entire supply chain or delivery chain.
- Blockchain has robust and decentralized architecture. The practice of using blockchain in the jewellery industry brings about immutability as it displays the entire ledger history in front of the users. But, the benefit is that no one is able to change the transactions that have already assigned a time-stamp. Blockchain ensures that none of the jewellery transactions remain untraceable in the given network.
- As blockchain comes up with a robust ecosystem where there is complete transparency of every transaction going back to the origin, it ensures trust chains. With the implementation of blockchain, one can easily trace a piece of diamond or gemstone to its origin and remain assured about its authenticity.
- It offers paperless transactions between willing parties, with no hindrance in the growth of the jewellery ecosystem. One can also do direct trading with unknown parties and remain anonymous.
- Implementing blockchain technology is not only helpful for the consumers but for the jewellers as well. Combining it with smart contracts they can get a huge gain in business efficiency and demonstrates compliance.
- Blockchain provides regulators and other consumers with traceability and transparency, while also providing the privacy and specific views of the ledger that are relevant for every user. This is an important consideration for the gem and jewellery industry, which requires confirmed but sometimes verified specifications.