The diamond trading on blockchain will involve three crypto assets backed by IGI certified diamonds.
For the first time in the world, an innovative diamond trading model, which uses blockchain technology, has been launched by an Indian entrepreneur, Dr Amit Lakhanpal, founder of the Dubai-based Al Kasir Group.
Dr Lakhanpal has launched the model in partnership with the Private office of Sheikh Ahmad Bin Obaid Al Maktoum, member of the ruling family of Dubai.
The diamond trading on blockchain will involve three crypto assets backed by Indian Gemological Institute (IGI) certified diamonds.
The three crypto assets—AL Mas, AL Haqeek and AL Falah would be real value assets and would be exchanged for physical value assets like diamonds, precious stones and Oudh, Bakaar or Attar, respectively.
Dr Amit Lakhanpal said, “Blockchain technology is becoming increasingly popular amongst individuals, financial institutions and governments. Three blockchain assets, backed by real-world assets, would be more capable of storing and translating value. Diamonds are an ideal asset since they are rare, and have a long history of being recognised as a store of value. They are small, and therefore are easily transported. The three blockchain assets are designed to seamlessly address the need of security, combining the convenience of digital currencies by being utilised as blockchain assets with the stability of traditional assets.”
These assets, which range from USD 250 to USD 250,000, will also be available for purchase across the counter along with their online portal.
Al Kasir Group is planning to open 1000 stores across the world in all major markets including South-East Asia, Europe, the UK and the Gulf region.
When asked how diamond trading on blockchain would be different from cryptocurrency, Dr Lakhanpal told The Sunday Guardian, “We are giving customers tangible assets in exchange of their investment, which is not possible in cryptocurrency. We are using the crypto technology, but that is not similar to using cryptocurrency.
We also want to cater to all segments of the society. Hence, we have carefully decided on the pricing of the assets. We want to become one of the leading players in the market in the next five years.”
However, the value of asset will fluctuate based on the demand and supply on company’s exchange, which will be open to the general public as well.
Blockchain assets are freely transferable over the blockchain platform, which gives buyers an advantage to gift the assets to others, or simply transfer the redemption value to them.
Public trading of these assets would commence between August 21 and August 24 during Eid celebrations.
The company has also announced pre booking of these assets with several bonus packages for early bird investors.