When a diamond is purchased on the CEDEX exchange, a diamond digital certificate (“DDC”) is created. This certificate represents a diamond’s ownership and includes the gem composite, as well as its historical trading information, financial data (from the DEX ratings), storage location, owner number and photos (future feature).
The smart contract incorporating this function is based on Ethereum protocol ERC-721. It can be transferred between verified customers once a match occurs between a buyer and seller on the exchange and the diamond changes owners, without physically moving the diamond from the custodian.
Activity on the CEDEX exchange, and later on within the diamond ecosystem, will be performed solely using the CEDEX coin. The CEDEX coin is based on ERC-20 and can be transferred for trading and investment purposes on the exchange. Additional uses for the CEDEX coin on the exchange:
Traders must buy CEDEX coin to purchase diamonds and diamond derivatives on the CEDEX platform
Payment to and for all service providers will only be possible using CEDEX coin
Traders will use CEDEX coin to cover collateral/borrowing fees when opening a short position (future option)
Traders will be able to use their portfolios as collateral for CEDEX coin loans
CEDEX exchange includes financial instrument technology, a proprietary order book and matching engine all developed by CEDEX.
This includes the capability to place an order on a diamond category, which will result in multiple orders within the specific category. Once a match occurs, all orders within the category are cancelled. This allows multiple interdependent orders to be placed, with zero latency.
