Technology

The CEDEX Exchange is built using a number of cutting-edge technologies, including those based on the Blockchain, machine-learning algorithms, digital asset certificates and exchange software solutions. All aspects of the CEDEX project are being developed with special attention to maintainability, flexibility and scalability.

The DEX - The Intelligence Behind CEDEX

The Dex is a first-of-its-kind tool that uses a sophisticated machine-learning algorithm to analyze the market price of each diamond. This algorithm grades each stone according to its unique GIA report, which allows identical diamonds with the same grading score to be easily compared. Investors can easily sort diamonds by their DEX score, making the diamond financial market accessible and coherent to investors, even those with no prior knowledge of the industry.

The DEX is comprised of three main elements:

Indices Composite

Tells potential traders how the diamond market is performing

Gem composite

Representing a diamond’s gemological perfection

Parallel Composite

Indicating the rarity of a diamond’s category

Diamond Digital Certificate

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Diamond Digital Certificate

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.

CEDEX Coin

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CEDEX Coin

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:

Purchasing Diamonds

Traders must buy CEDEX coin to purchase diamonds and diamond derivatives on the CEDEX platform

Payment

Payment to and for all service providers will only be possible using CEDEX coin

Additional Fees

Traders will use CEDEX coin to cover collateral/borrowing fees when opening a short position (future option)

Loans

Traders will be able to use their portfolios as collateral for CEDEX coin loans

Exchange Software

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.

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