Everyone is getting into Blockchain

by JDH on March 3, 2018

So here’s an interesting press release: Lucara Diamond Announces Acquistion of Clara Diamond Solutions Corporation.  From the press release:

Lucara Diamond Corp. (“Lucara” or the “Company”) (TSX:LUC)(BOTSWANA:LUC)(NASDAQ OMX Stockholm:LUC) wishes to announce the acquisition of Clara Diamond Solutions Corp. (“Clara”), a company whose primary asset is a secure, digital sales platform that will transform how rough diamonds are sold, unlocking value for diamond producers and manufacturers alike. Clara uses proprietary analytics together with cloud and blockchain technologies to modernize the existing diamond supply chain, driving efficiencies and ensuring diamond provenance from mine to finger.

Lucara has a diamond mine in Botswana, producing revenues of US$230 million per year.  They pay a regular quarterly dividend.  The next quarterly dividend is 2.5 cents per share, Canadian (record date March 23, 2018), so at the closing price on Friday of $2.11 that’s a dividend rate of 4.7% annually.  Not bad.

So with a profitable company, why buy Clara?  Because Clara has some cool technology, based on the blockchain.

Lucara mines a diamond, but diamonds have different quality and characteristics.  Some are big, some are small, and the grades and characteristics are different.  So if I’m a diamond ring maker and I want a specific diamond, how do I find it?  And how do I know that it’s not stolen?  Lucara can now put all of that information on the blockchain.

Every characteristic, so that as a purchaser of a raw diamond and can know where it came from, who owned it, and all of it’s other characteristics.

It makes it easier to match buyer and seller.

Will it work?

Who knows, but if it does, it’s significant.

Imagine if you wanted to buy a house, but there was no way to know what houses were for sale.  That would make it very difficult.  With all of the information on a blockchain application, buyers and sellers can be perfectly matched, so it could be huge.

Or not.  I have no idea if it will work, but it is intriguing.

I’ll keep an eye out for other non-crypto-currency blockchain applications, and report back my findings.

Stay tuned.