DIGITAL GOLD ENABLES GOLD PAYMENTS USING BLOCKCHAIN TECHNOLOGY


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Gold is an asset that many people would love to have. It is pricy, but the values over time are worth the investment. That is why many investors are passionate about betting their last card to get the asset. For many decades, gold has been the source of massive income not only for private investors but also for the government. So enormous is the profit that getting one gold bar became a luxury because the price has skyrocketed. The industry has and would continue to boom for generations to come.

However, a few changes have to be made to help the global gold industry to reach its full height. The integration of blockchain technology is one of such moves towards the expansion of the sector. For a decade now, the blockchain technology has been making the rounds in other areas of the global economy, with many impressive results to show for it. So, it wouldn’t be out of place to seek a similar gesture for the gold industry. That informs the reason behind the Digital Gold project.

BLOCKCHAIN IS GOLDEN

There’s no disputing that the Distributed Ledger Technology (DLT), aka blockchain technology, has brought amazing features into different industries around the world. The most significant of its properties is the distribution of powers, which encourages democratic governance as opposed to the centralized variation that is common. It also brought about reduction in fees and a general increase in the speed of transactions. These and many more are the features that make blockchain one of the most used networks around the world today. Therefore, integration into the global gold industry is expected to follow the same pattern.

Here are some of the highlights of the migration of physical gold transactions to blockchain technology courtesy of Digital Gold:

Ensured Liquidity:

Ideal, physical gold has enough liquidity. However, in some cases under the conventional setting, it could be an arduous task to unravel the movement of the market. In some instances, the number of available gold bars may be shady.

Nonetheless, through the Digital Gold platform, investors can always engage in live audits. The audits empower them to decipher the liquidity of the asset by verifying the amount of asset/value-stored gold, which is dictated by the availability of the corresponding tokens (more on this below).

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Token to Gold:

Now, Digital Gold aims at bringing physical gold transactions to blockchain technology. It does that through the issuance of an ERC-20 token, which is pegged to the value of the gold spot price. The latter is FINE gold that is stored in an offline vault. So, the moment an investor purchases the token (the GOLD Token), he or she also gets to become a direct shareholder in the stored gold, depending on the value of the tokens.

Interestingly, there would be only a few incidences of price fluctuation because the pegging of Digital Gold’s GOLD Token to the (physical) gold spot price ensures stability. Transactions on the platform, as is familiar with every blockchain-based project, are triggered by the smart contract technology. The smart contract, in this instance ensures that the investors would get an instant gold purchase for every token they purchase. Each GOLD Token is equivalent to about 1 gram of 99.9% FINE/physical gold.

Trading on Gold:

It is also possible to trade on gold via the Digital Gold blockchain platform. All you need do is to purchase your desired quantity of FINE gold using the GOLD Token. Once that is done, you can choose to store the tokens in your wallet because the price is stable. Otherwise, you may want to trade it just as you can also buy the same at will.

CONCLUSION

The “coming of gold to blockchain” is commendable because the investors can now transact without fears of third-party interference. The prices of the assets through the Digital Gold are also stable, just as security of assets is top-notch. So, the next time you want to trade on physical gold, you already know that the Digital Gold blockchain platform has all the instruments you need to be successful at that.

USEFUL LINKS:
Website: https://gold.storage/
Whitepaper: https://gold.storage/wp.pdf
Telegram: https://t.me/digitalgoldcoin
Twitter: https://twitter.com/gold_erc20

AUTHOR'S DETAILS
Bitcointalk Username: Waltermeks
Bitcointalk Profile Link: https://bitcointalk.org/index.php?action=profile;u=2576323


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