The global diamond market had developed rapidly since its discovery, the industry has recently been inhibited by environmental, conflict and ethical issues, as well as the decreasing volume of diamonds successfully mined. Currently, in a market worth approximately $80 billion USD, a solution must be reached in order to resolve these ongoing issues surrounding the market. Pure Diamond is a Japanese company that is pioneering future of diamonds, making steps to ensure the continued existence of these incredible gemstones. Pure Diamond Lab. Co. Ltd. is the first Japanese company to create lab-grown diamonds, that have the same chemical, physical and optical properties of a naturally occurring one. The innovative Singaporean based Pure Diamond Blockchain Project is founded with the aim to distribute Japanese laboratory (lab)-grown diamonds worldwide. At the core of the Pure Diamond Blockchain Project is the cryptocurrency Pure Diamond Coin (PDC).
PDC is a cryptocurrency that creates a token economy for holders to purchase a lab-grown diamonds on the Pure Diamond Network and can be used for settlement, with market prices decided by secondary markets. PDC’s token is ‘pegged’ or ‘linked’ with the generation of labgrown diamonds. This association of PDC and a collateral ensures that the value of the token is more stable and less likely to face large fluctuations. Overtime as more lab-grown diamonds are cultivated, the value of the token is expected to steadily increase. For instance, in its first year if 100 lab-grown diamonds are cultivated then one token would be valued at 100 lab-grown diamonds. In its second year 200 lab-grown diamonds are cultivated, so the valuation of the PDC token would be 200 lab-grown diamonds.
The concern for most consumers is that due to the value of PDC being determined by its labgrown diamond counterpart, what will happen under the circumstance that consumers do not accept and purchase lab-grown diamonds. This worry can be easily negated by existing evidence where in the U.S. market, lab-grown diamonds are sold for approximately 50% of naturally occurring diamonds, there is an existing market and existing consumers for these diamonds. Moreover as we will explore below, lab-grown diamonds possess comparably favourable properties and ethical qualities than natural diamonds, allowing lab-grown diamonds to be more easily accepted by the general public.
The Quality of Lab Grown Diamonds
One of the board members of the Pure Diamond Project, Mr. Shigeyuki Ishida estimates that around 98% of all natural diamonds contain impurities (mainly nitrogen) during the natural process of production.
Lab-grown diamonds are cultivated in a controlled environment meaning that they are completely free from any impurities rendering them ‘flawless’. Lab-grown diamonds are optically superior to most natural diamonds, as the flawless nature of lab-grown diamonds is extremely difficult to surpass. Lab-grown diamonds are also certified by the Gemological Institute of America (GIA), recognising that they are indeed diamonds in its own category, which means when you the end consumer receives their GIA Certificate, it will be clearly labelled as lab-grown diamonds.
The Potential of Lab Grown Diamonds
Lab-grown diamonds that are part of the Pure Diamond Blockchain Project can be cultivated in a wide spectrum of colours. Even the rare ‘Hancock’ red diamonds and blue diamonds which usually fetch for a couple of million USD can now be purchased by the regular consumer. Moreover, Pure Diamond Lab Co. Ltd. are able to cultivate ‘rainbow diamonds’, diamonds that possess a multitude of different colours; one which does not occur naturally.
Affordability of Lab Grown Diamonds
As mentioned previously, lab-grown diamonds are currently sold in the United States at approximately 50% the price of natural diamonds, essentially this means that at the same cost, lab-grown diamonds can fetch for twice many carats. This lower cost is only made possible due to the cost-efficiency of cultivating diamonds inside a lab, thus opening up the market and making diamonds more affordable to many consumers. Ishida stated in an interview that he believes that lab-grown diamonds offer consumers with more options, comparing it to the equivalent of an Apple Watch in the wristwatch industry, where Rolexes are the equivalent of natural diamonds.
The Pure Diamond Network
The Pure Diamond Network uses original blockchain technology and implements an encrypted peer-to-peer network. This makes the network decentralised, thus removing its dependence on the central control management approach. This also makes it possible to communicate and distribute non-falsified information.
The team behind the Pure Diamond Blockchain project also plans to implement an Artificial Intelligence assessment system. This will be used in conjunction with an evaluation system similar to Sarine Diamond Technologies.
The producer of Pure Diamond Lab. Co. Ltd. Mr. Hideyuki Abe has stated that he plans for the Pure Diamond Network to exist on its own blockchain due to advantages in scalability, allowing for a more free approach to developing the blockchain.
The Future Of The Pure Diamond Blockchain Network
As evidenced above, lab-grown diamonds exhibit incredible features that make it more accessible and exciting for consumers. This does not mean however, that the natural diamonds will be completely removed from the market, nor is it the goal of the Pure Diamond Project to make it so.
However the presence of lab-grown diamonds will undoubtedly increase over time and the Pure Diamond Blockchain Project is aiming to distribute these worldwide, creating a market where natural diamonds and lab-grown diamonds coexist together, offering more options for consumers.
Pure Diamond Coin’s ultimate goal is to exclusively distribute lab-grown diamonds and make them readily available for consumers across the globe. Through the development of PDC’s own original blockchain network, they “give every diamond a story”, a journey of a thousand miles begins with a single step, and Pure Diamond Coin is a step in the right direction for the future of the diamond industry. The Pure Diamond Blockchain Project is indeed something exciting to keep a look out for in the coming weeks!