SPECIAL FEATURES 12 | JNA May/June 2022 NFTs are also the most ideal way to memorialise a diamond’s distinctive characteristics and authenticity from mine to consumer, noted Kendall. This notion is especially attractive to younger buyers who value digital representations of ownership more than older generations do. “It is expected that in the near future, all tangible assets of real value will have a blockchain digital asset to accompany them,” he continued. The low-cost yet global network that digital assets live on contribute to the allure of NFTs. This unique feature enables meaningful assets to be “owned” by the consumer in a way that Web 2.0 platforms cannot. Investopedia.com defines Web 2.0 and Web 3.0 as successive iterations of the web, compared with the original Web 1.0 of the 1990s and early 2000s. Web 2.0 is the current version of the Internet as we know it while Web 3.0 represents its next, more advanced phase. “NFTs for tangible diamonds are often used as a certificate of authenticity or CoA. Unlike paper or physical CoAs, a digital CoA can be embodied with significantly more information than before. These include images, videos, manufacturing documentation and grading reports, to name a few – all authenticated and memorialised in a single NFT,” explained Kendall. Erik A. Jens, founder of LuxuryFintech, said NFTs are not entirely new and have been around for many years since the advent of blockchain technology. A sudden NFT boom in the arts sector triggered the rise of NFTs in the jewellery trade. This presented myriads of new opportunities for jewellers. With people increasingly becoming engaged in the metaverse gaming world where they can create avatars or digital versions of themselves, “dressing” or “accessorising” one’s metaverse personality has become a growing trend. Jens explained, “People are connected in this gaming world. For instance, they can buy Nike shoes for their avatars. And the hope is that the person buying an NFT for his avatar will later buy Nike shoes for himself to match with his avatar.” NFT profile pictures or PFPs have also become covetable property in the NFT world, and some fashion companies have started “dressing” celebrity and influencer PFPs as an alternative way to market their goods to tech-savvy audiences. The same concept can be applied to the jewellery trade where brands and designers can adorn celebrity PFPs to introduce and promote jewellery collections. “The possibilities are truly endless,” said Ahluwalia. “The metaverse can be viewed as a fully functioning economy where an NFT owner can celebrate his or her individuality by wearing virtual jewellery in an expansive digital world.” Jens agreed, adding that industry leaders like Bulgari and Nike have already envisioned this Reena Ahluwalia We will be limiting ourselves if we dismiss the power of collecting digital assets. We live in an increasingly digital world, and we will soon own multiple digital assets and experiences, including jewellery and diamonds. – Reena Ahluwalia
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