JNet1, a network of jewelry dealers and businesses in Russia, has taken a lead in bringing blockchain technology to the jewelry industry by creating the JNetCoin virtual currency. Though a virtual currency or cryptocurrency, the JNetCoin will be backed by physical jewelry, a secure and transparent blockchain platform, and experts in the jewelry industry who will manage the platform.
Using the blockchain, JNet1 aims to solve key problems in the jewelry industry: (1) Obsolete methods of doing business, (2) poor sales conversions, and (3) a lack of transparency. JNet1 will tackle these problems by providing industry professionals access to one another on a single platform, creating a user-friendly interface for finding specific types or items of jewelry, and allowing investors to see transactions with values on the platform.
Importantly, blockchain will be unique and revolutionary by allowing investors to see the movement of jewelry from the point of gathering the raw materials, to its production, and finally to its sale to customers at the wholesale and retail levels. By creating accurate and immutable records on a ledger, investors can be assured that their cryptocurrency or tokens have value.
Because of the transparency of the blockchain and the level of trust it brings, new business can be generated and relationships strengthened by its use. Increasingly more business is being done online, and those businesses that embrace technological innovation such as the internet and blockchain are likely to capture a greater share of the market. According to JNet1, the global jewelry industry is projected to grow about five percent a year, and the company believes it will be a primary beneficiary of this growth by introducing blockchain.
By providing an easy-to-use platform for buyers and sellers, jewelry businesses will potentially be able to expand their customer base, offering their products to people from all over the world, effectively erasing physical or national barriers. Among the categories available for users of the platform are precious metals, gems, jewelry, services, and equipment. The platform will accommodate both B2C (business to consumer) and B2B (business to business) users.
Importantly, the JNetCoin is one of the first jewelry-based cryptocurrencies, which will ultimately strengthen the JNet1 brand and network. As the growth of market capitalization of cryptocurrencies shows, investors and consumers are increasingly embracing companies that create their own cryptocurrencies. Given the transparency and security that are hallmarks of blockchain technology, companies that use this technology may be perceived to be more trustworthy.
For more information about jNetCoin:
Bitcointalk announcement: https://bitcointalk.org/index.php?topic=2159638.0
Bitcointalk bounty: https://bitcointalk.org/index.php?topic=2159707.0