Hello Steemians !!
Today I'm going to make my Steemit Crypto Academy Homework task by professor @yohan2on Lesson 7 that talking about Stable Coins Part - 2. A new and good lesson for me. I will try to discuss it, i hope my knowledge is more developed about coins in the crypto world. On this occasion I will try to discuss about stable coin Digix (DGX).
Digix (DGX) is a stable coin created by a company located in Singapore called DigixGlobal. The presence of DGX as a stable coin makes some people who are involved in the crypto world really like it because DGX is a coin whose value is based on real world assets that are owned by everyone, namely gold. Just imagine, gold is a real world asset for everyone stored in the house and now you can find in the form of digital coins. This is something new that really helps everyone especially cryptocurrency investors and traders.
Usually, you will make transactions in the form of buying and selling gold directly at a gold shop or trading place that is around you. You have to bring the money you have in order to transact and get gold. The presence of DGX is very helpful because 1 DGX has a price comparable to 1 gram of gold. The gold we own is stored in a vault in The Safe House, a subsidiary of Silver Bullion. Of course this will interest you and investors to start investing in this stable coin.
The purpose of creating DGX as a stable coin is the same as other stable coins to reduce and control price volatility on the cryptocurrency market. The difference is many other stable coins are based on fiat currencies, but DGX is based on gold. DGX uses an Etherum blockchain-based system that will make it easier for you to make any transaction digitally and globally. This will make you and the investors reap big profits in the future.
Proof of Provenance (PoP) of Digix (DGX)
Proof of Provenance (PoP) of Digix (DGX) is a protocol created by the Digix team with the aim of introducing that 1 DGX is equal to 1 gram of gold added in the vault. This protocol goes through many processes such as uploading important documents so this evidence can confirm that the transactions are real and proven. This creates a high level of trust between the two parties so transactions and communications run according to procedures.
After going through this process, Gold will be stored in a vault as collateral and proof of transaction. Furthermore, the smart contracts on the Ethereum blockchain system will work and generate DGX which is equivalent to the value of gold stored. This principle is used with the aim that all involved will be published and transparent without being closed down.
Advantages of Digix (DGX)
- DGX is expected to be a stable coin that can reduce and control price volatility on the cryptocurrency market.
- DGX is a gold investment that has high collateral.
- DGX is backed by physical gold. This allows you to exchange your DGX into physical gold at any time.
- DGX uses an Ethereum blockchain based system that allows you to transact in any form. You can buy, sell, and exchange your DGX with everyone connected to the Etherum blockchain.
- DGX uses a system with a very high level of security. So the chances of hacking and fraud are impossible.
- DGX uses a transparent system so that all transactions made can be viewed and accessed at any time.
Thank you for reading my blog, maybe there are still many mistakes of my homework, but here it is. Hope it will be useful for all of you.