9 Oct, 2019

First Stablecoin Backed by Diamond to Soon be Launched

A blockchain-powered platform, Hello Diamond will be moving from the Ethereum network to Bitcoin Cash-run new smart contract platform Wormhole. The cryptocurrency which is reportedly currently in the works, will be backed by diamonds.

Hello Diamond, the platform will launch the stablecoin, DiamCoin and will be extensively used on the official DiamCoin exchange, but can also be adopted by any other project that requires a non-volatile cryptocurrency. Stablecoins are nothing but virtual currencies that are backed by the US Dollar (USD) and maintains a value of $1, despite the cryptocurrency market conditions.

The company decided to move away from Ethereum network, after the blockchain was criticized for not being able to keep up with the required throughput for large-scale applications, news portal, LeapRate noted. Bitcoin Cash, in comparison, has blocks that are validated faster as well as have low transaction fees.

Commenting on the change, Patrick Makedonas, who is an ecosystem developer of Hello Diamonds told the portal, “The Ethereum network has grown so big, and over the last year we have seen thousands of ICOs and other tokens being built on the Ethereum network. As a result, when all of these new tokens want to send big volumes in separate transactions, or if it is a busy time for the network, the Ethereum network simply slows down to a point where it is not efficient.”

Seconding his views, the Chief Executive Officer (CEO) of Hello Diamond, Jeremy Dahan said, “Bitcoin Cash’s ability to handle high transaction volumes with low transaction fees is highly relevant for our ecosystem. Moving forward we have to be certain that the solutions that we choose can cater to our users.”

Although this is a first cryptocurrency to be backed by diamond, this is definitely not the first time diamonds and blockchain have been brought together.

Indian companies Dharmanandan Diamonds and Hari Krishna Exports are now leveraging blockchain technology to enhance traceability of stones through supply chain, as earlier reported by Crypto-News India.

Dharmanandan Diamonds has partnered with international company Everledger to place the company’s diamond data on a blockchain platform. The collaboration will realise two important objectives: Everledger’s blockchain platform which will put the company on the map and Dharmanandan’s Time-Lapse, a report which will show the complete process from when a diamond was procured to when it reaches a customer.