The blockchain-based diamond platform Hello Diamonds, established in 2016, is working on a diamond-backed cryptocurrency to be issued on the new smart contract platform of Bitcoin Cash.
Hello Diamonds, a blockchain-powered diamond platform, announced it is shifting from the Ethereum network to Bitcoin Cash’s new smart contract platform Wormhole. The ultimate goal of the company is to provide a platform for seamless investing in precious minerals, while simultaneously offering the world’s first fully diamond-backed cryptocurrency. Hello Diamonds’ innovative approach convinced 2010 Economics Nobel Prize winner Sir Christopher Pissarides to join the board of directors.
Heart of the project is its stablecoin DiamCoin, which is the first token to be 100 percent backed by physical diamonds. The digital currency will be used on the official DiamCoin exchange, but can also be adopted by any other project that requires a non-volatile cryptocurrency.
The company recently decided to move away from the Ethereum blockchain, which has often been criticized for not being able to keep up with the required throughput for large-scale applications. In contrast to Ethereum, Bitcoin Cash blocks are validated faster and have the ability to scale, while still maintaining low transaction fees. In addition, recent tests have shown that Bitcoin Cash’s smart contract platform Wormhole is able to handle contracts with increased complexity.
Patrick Makedonas, an ecosystem developer of Hello Diamonds, is confident that the change will accelerate the network efficiency of the DiamCoin. “The Ethereum network has grown so big, and over the last year we have seen thousands of ICOs and other tokens being built on the Ethereum network,” he said. “As a result, when all of these new tokens want to send big volumes in separate transactions, or if it is a busy time for the network, the Ethereum network simply slows down to a point where it is not efficient.”
As of November 2018, the fee of a single transaction on the Bitcoin Cash blockchain is by 85 percent lower compared to an Ethereum transaction. This is significant for DiamCoin, as from a high-level business perspective, one of the biggest differences in the day-to-day experience of end users will be transaction fees.
“Bitcoin Cash’s ability to handle high transaction volumes with low transaction fees is highly relevant for our ecosystem. Moving forward we have to be certain that the solutions that we choose can cater to our users,” said Jeremy Dahan, CEO of Hello Diamonds.
To learn more about the announcement, visit the official website of Hello Diamonds.
Media Contact: Patrick Makedonas