Blockchain Startups to modernise the Diamond Trade

The process of converting the shiny stones into cryptographic tokens has been started
25 June 2018   899

Blockchain technology has now enabled to turn diamonds into financial assets by representing their value with tokens. There are 3 startups that are aiming to make the esoteric diamond industry more available.

Glitzkoin

A startup from Estonia, Glitzkoin, claims that before diamonds are sold, they have to  be mined, sorted, cut, polished and valued. The developers would like to apply blockchain technology to coordinate all the necessary processes.To this end, it will implement mining/shipping/insurance entities onto its platform. It is also to run a decentralised diamond exchange that will allow anyone “to invest in individual diamonds, shares of a high-value stone or shares in a basket of diamonds like an ETF.” The Glitzkoin blockchain is built on Stellar and operates with a utility token called GLT. GLT tokens will be listed on cryptocurrency exchanges in the third quarter of 2018, and in the fourth quarter the decentralised exchange will be started.

CEDEX

CEDEX is an Israel-based launch that is to open the world’s first blockchain-based diamond exchange. The mission statement of CEDEX is “bridging the gap between the traditional diamond industry and the innovative financial markets”. The project touts three principles: transparency, liquidity, and standardisation. 

CEDEX offers GIA certified diamonds, which means that the diamonds went already through the diamond industry Kimberly process. Currently in the diamond industry there are several initiatives to incorporate blockchain technology. The purpose is to follow the journey of the diamond from rough to polish at the retail store. For CEDEX - which is also a blockchain project - it means that we will be able to use existing infrastructure to show our investors not only the value and GA certification, but also the journey of the diamond. Hence - assisting in preventing ‘conflict diamonds’ to make stage into the market.
Ronen Priewer
CEO, CEDEX

CEDEX is presently registering its coin at cryptocurrency exchanges, and it is to launch its exchange in the first quarter of 2019.

Carats.io

Carats.io is an Israeli launch which is taking a slightly different approach to the problem. It plans to create a token that is backed by the value of diamonds, in the same way that dollars were once backed by gold held in Fort Knox, or more recently, how the cryptocurrency Tether is backed by dollars. Carats.io is applying the diamonds registered on the IDE to develop an index of diamonds named the Get-Diamond Index. Now the GDX is official index of the IDE, and over 10 billion USD worth of diamonds are on the index so far. The firm’s first token generation event is stated to start in Q3 2018.

Potentional Vulnerabilities Found in ETH 2.0

Least Authority have found potentional security issues in the network P2P interaction and block proposal system
26 March 2020   1026

Technology security firm Least Authority, at the request of the Ethereum Foundation, conducted an audit of the Ethereum 2.0 specifications and identified several potential vulnerabilities at once.

Least Authority said that developers need to solve problems with vulnerabilities in the network layer of peer-to-peer (P2P) interaction, as well as in the block proposal system. At the same time, the auditor noted that the specifications are "very well thought out and competent."

However, at the moment there is no large ecosystem based on PoS and using sharding in the world, so it is impossible to accurately assess the prospects for system stability.
Also, information security experts emphasized that the specifications did not pay enough attention to the description of the P2P network level and the system of records about Ethereum nodes. Vulnerability risks are also observed in the block proposal system and the messaging system between nodes.

Experts said that in the blockchains running on PoS, the choice of a new block is simple and no one can predict who will get the new block. In PoS systems, it is the block proposal system that decides whose block will fall into the blockchain, and this leads to the risk of data leakage. To solve the problem, auditors suggested using the mechanism of "Single Secret Leader Election" (SSLE).

As for the peer-to-peer exchange system, there is a danger of spam. There is no centralized node in the system that would evaluate the actions of other nodes, so a “malicious" node can spam the entire network with various messages without any special punishment. The solution to this problem may be to use special protocols for exchanging messages between nodes.