There are two severe problems in traditional system for a jewelry trade industry.
existence of an unconditional trusted broker between wholesalers and retailers. : Wholesalers lend diamond/jewelry to retailers via brokers without any collateral. Brokers usually take 5~20% fee from every transaction as trust cost. They just trust brokers. That's how they have done this business for many years. Last year total of 3 million dollars fraud were caused by brokers. ==> To remove brokers, crowd-funding with smaller fees via blockchain can solve this trust issue.
at least 30 day delayed settlement from retailers : Wholesalers tolerate this delayed settlement because this is the way they've done the business. But risk is very high especially from the perspective of 'liquidity'. ==> To increase liquidity for wholesalers, transaction receipt from retailers can be accepted for economic activities from wholesalers. (Transaction receipt can be a type of NFT) The settlement will be automatically sorted out via smart contracts.
The system is mainly built on several smart contracts.
NFT to represent Jewelry to be traded.
Crowd funding scheme to rent retailers for them to use it as deposit for to-be-traded jewelry.
IoU scheme to provide liquidity wholesalers. They can take being-traded jewelry as a collateral to mint stable coins.