A new cryptocurrency, jNetCoin, aims to facilitate trade and make transactions more transparent in the jewelry business by using blockchain technology. The cryptocurrency has been launched by jNet1, an established network of jewelry businesses with shared information online. By using the blockchain, individuals and businesses will be able to view transactions on a shared ledger, allowing market participants to obtain critical market data easily and fairly.
By implementing the token, or cryptocurrency, jNetCoin aims to simplify the payment of goods and services and reduce red tape in the jewelry industry. The application of blockchain will also make transactions more secure, as blockchain is notoriously difficult to hack or manipulate by third parties. The platform also allows for a single form of payment from participants in all countries, removing the barriers that exist when fiat currency is exchanged between those residing in different countries.
A total of 10,000,000 tokens will be created, ensuring that the amount is capped to prevent devaluation, while allowing for the ecosystem within the platform to thrive and remain liquid. The team will retain up to 20 percent of this amount to take care of administering the network.
The blockchain will allow users to track jewelry from the acquisition of raw material, to its creation, and finally to the destination of the finalized product. For investors, the blockchain will record receipt of their funds, the purchase of the metal or gems, the order of the manufacturer, the examination of the jewelry, the receipt for its sale, as well as the amount of profit realized. Additionally, investors can use the blockchain to receive offers for loans, to create “smart contracts” that avoid middlemen, that show the deposit and value of jewelry following evaluation, to transfer funds to borrowers, as well as to view the return on investment (ROI).
Jewelry Industry Growth and Potential
The jNetCoin team, citing McKinsey Research in their whitepaper, expects the jewlery industry to grow a healthy five to six percent per year to 2020. Being among the first to apply blockchain technology means jNetCoin is poised to capture much of this growth. Moreover, much of this growth will take place online, giving businesses with an online presence a competitive advantage. The blockchain will make it easier for jewelry businesses to connect with their consumers, allowing them to verify the authenticity and value of their purchases. The blockchain will make it easier for jewelry businesses to expand internationally by building trust and accountability on a single, accessible platform, effectively erasing barriers between themselves and the consumer.
For more information about the jNetCoin:
Bitcointalk announcement: https://bitcointalk.org/index.php?topic=2159638.0
Bitcointalk bounty: https://bitcointalk.org/index.php?topic=2159707.0