Blockchain technology is becoming more and more popular and its gaining acceptance worldwide all because of its numerous benefits. It is a technology that values speed, transparency and most importantly, it is anti-corrupt. This is the more reason why various companies are embracing this technology. Even though the full concept of blockchain technology is not fully understood, the existing benefits have made it gain wide acceptance. Cryptocurrencies have also been of great help but the major problem it has is its volatility, hence scaring people away from investing in it. Because Bitcoin has became very successful since its inception, blockchain technology has gained more popularity and people are convinced that it has a greater potential.
Gold is a precious commodity and has been in existence for a very long time. It is considered a great asset because it has a lower volatility and a higher profit value. In the past, gold was used as a mode of payment or commodities, but currently it has reduced drastically. Even trading in gold has become very difficult and looks impossible. Even the processes involved are quiet long and tedious. The trading of gold has been left in the hands of mining companies or major companies that have enough funds to trade in gold.
Digital Gold has designed a project aimed to use blockchain technology to bridge the huge gap that exists between digital ecosystem and gold. Blockchain technology was chosen because it solves the existing problems that the current financial services have. These financial service providers (banks) are slower and charge much higher transaction fees. Mostly too, they cannot perform a lot of transactions at once. Blockchain technology provides a faster, more efficient and trustworthy transactions which can be tracked at any time.
BENEFITS OF BLOCKCHAIN TECHNOLOGY TO THE GOLD MARKET
This technology will make gold accessible, hence users can purchase gold with their own tokens, and even use it as a means of payment. Hence the restriction that exists in the current gold market will be reduced.
Since gold is a precious commodity, investors are scared to store it in their homes due to security reasons. With this new technology backed by gold, storage of the gold will be much easier.
We will provide maximum security and if users adhere to the security measures, the digital gold will not be able to be hacked.
The existing gold market also has intruders who mine gold illegally; making it difficult to be able to differentiate between legally mined and illegally mined gold. With the use of blockchain technology, the gold will be tracked from where it is mined to its consumer. This can be only achieved when the members of the ecosystem join hands together.
FEATURES OF THE DIGITAL GOLD TOKEN
This token is an ERC-20 based coin that can enable users buy, sell, store or trade in gold anonymously. This token is backed by physical gold which is stored in the company’s vault. With one token, an individual can purchase 1 gram of 99.9% gold. The price f gold will be determined by the current stock prices. He token holders will enjoy transactions without paying for any transaction fees. And since the tokens are backed by gold, its volatility will be reduced to the barest minimum. An individual can boast of purchasing gold without having to go through a number of processes. The gold token can be stored on MetaMask, MyEther wallet, Guada, Ledger Nano S and Trezor wallets.
In conclusion, since gold is a precious commodity, Digiatl Gold has combined blockchain technology with gold in other to make trading of gold much easier, faster and less stressful.
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