As the idea behind CEDEX began taking shape, it became apparent that there would be multiple problems to solve before it could become the viable market changing product we believe it can be.
You already know the problems CEDEX wishes to solve, so let’s look at how it plans to solve them – and how it will work once operational.
The basic premise of CEDEX relies on 4 main ideas, or “pillars” as we call them – the Dex, the smart contract, the exchange and the coin, with each pillar playing an integral part of the overall ecosystem.
Here’s an example of how the entire system will work:
User X has a 1 carat diamond they wish to sell, so they upload the GIA certificate (which holds all the information about the diamond) to the DEX, the DEX compares the data to other diamonds and suggests a suitable price, which user X can change.
At that point, a smart contract is created for the diamond, listing all relevant information about its whereabouts, price, and gem information. The diamond is then passed on to a custodian and is listed on the CEDEX exchange, while it awaits buyers.
Once a buyer is interested in said diamond posted by user X, they transfer payment with their own CEDEX coins to user X, and the custodian holding the diamond receives an order to send the diamond to its new owner using secure transport methods.
As you can see from the example above – the entire ecosystem in play in each transaction: seller> Dex > smart contract > exchange > coin > buyer.
Now imagine multiple similar transactions every week, day and hour and you begin to get a sense of the market size CEDEX can have and the applications of its system across financial markets.
Let’s delve a little deeper into each component of the transaction process to understand their importance with respect to how CEDEX operates:
1) The DEX – the DEX is a machine learning algorithm and the heart of the exchange. It will accumulate the data from every diamond uploaded to the exchange, from the diamond’s characteristics and the seller’s requested price to the actual sale price and more.
As it learns all these data points, it will constantly and continuously update itself and offer sellers the optimal price points for their diamonds and buyers the most suitable diamonds that meet their demands.
CEDEX’s team of mathematicians and computing experts are hard at work on the DEX. Their work will not stop with the launch, but will continue as we expand our offerings on the exchange – from diamond size and colors to diamond baskets and other exciting features.
2) The smart contract – In the cryptocurrency world, there is a constant need for speedy transaction resolution. In fact, it is probably one of the biggest advantages payment via cryptocurrency has over traditional forms of payment. It therefore makes the most sense to have every transaction on CEDEX be conducted in this crypto.
Once a diamond is bought or sold, the corresponding smart contract containing all relevant information will be sent to all parties involved, ensuring their ability to monitor the transaction and its accuracy through its completion.
Smart contracts are the way future sales will be conducted. CEDEX is proud to adopt them as an integral part of its core.
3) The exchange – If the DEX is the heart of CEDEX, the exchange will be the body that houses it. Various diamonds from across the world will be put up for sale on the exchange. Buyers can easily sift through the offerings, sort through the prices and determine which investment best suits their current needs.
The exchange will be the trading arena through which the diamonds are bought and sold, but it will also be the entry point for most users, from where they can check their accounts, monitor transactions, contact CEDEX if needed and of course – manage finances. CEDEX will be optimized for use on most devices, from PC’s to mobile phones. The platform will be purely browser-based.
4) The coin – If the CEDEX exchange can be seen as a trading arena of sorts (for diamonds) , then it would obviously need a currency to facilitate transactions. The CEDEX coin is that currency.
An ERC-20 based currency, the CEDEX coin will be used to pay for everything on the exchange – from diamonds to and courier services to storage fees. Users seeking to make a purchase will be able to buy the coin on various cryptocurrency exchanges and transfer it from their individual wallets to their account on CEDEX. And once they sell a diamond, the funds will make the “trip” in the opposite direction.
Those are the four cornerstones of CEDEX. Now you have a better understanding of how each impacts the whole operation and can start your diamond trading journey.