As the blockchain industry continues its push into the future of finance, all sort of different ideas have been sprouting up out of it. One of the latest that I have discovered is DigixDAO (DGD), a cryptocurrency based out of Singapore that is designed to act as a peg to gold bullion.
Gold has been popular for 10s of 1000s of years, so no introduction is needed in that regard. DigixDAO is representative of Gold’s first push into blockchain and the future of private asset management. Every single DIGIX token (which is built on Ethereum) is representative of a unique bullion bar which you can own, save and transact with. 0% fractional reserves are held in this regard.
Blockchain provides a great avenue for private wealth management as the DigixDAO token leverages distributed ledger technology to provide immutability, auditability and transparency of physical gold assets. All without the need for a third-party middleman!
The Proof of Asset protocol is the consensus mechanism used for transaction verificaiton purposes. It is a system for proving the existence and ownership of assets on distributed ledgers. Records of proof are published with Ethereum and IPFS technology. All bullion purchased comes with Assay certificates issued by LBMA refineries. The refineries involved include Valcambi, PAMP Suisse and Nadir Bullion.
DigixDAO is also subject to auditability from the Inspector Bureau Veritas, which provides quarterly audits of all gold assets held in safe house vaults. Users of DigixDAO can buy it through any partnering custodial vault.
The technology comes with two kinds of tokens:
DGX is supposed to act as the future gold-standard for value exchange in Ethereum. Each token represents 1 gram of 99.99% LBMA standardized Gold, held in safe house vaults. DGX has on-chain proof of auditing, contains no fractional reserves and is allocated to the fullest extent. 100 DGX tokens can be redeemed for 100g of physical gold.
DGD is used to claim quarterly rewards based on total DGX collected through transaction fees. It acts as a contribution to the Digix ecosystem through DigixDAO, the self-governing community of all DGD tokens. The goal is to increase DGX adoption by rewarding its users in their attempts to help grow the ecosystem. Supporting and rejecting of proposals by users will lead to rewards received in the future.
DigixDAO is perfect for cryptocurrency investors looking for long-term wealth preservation, as Digix is able to protect against the price volatility of digital and real-world assets. Buyers who also want their assets to be as liquid as possible can use Digix to provide everyday physical security and ease of conversion to gold bullion. You can check out more through the Digix Beta Marketplace. Gold investors, definitely consider this one!
You can help support my work on Cryptovale through signup with my referral links on Binance (Where I trade Altcoins) and CEX.IO (Where I buy coins with Fiat USD)
I would love to hear your thoughts on this article in the comments!
Your Donations help me host this website and continue my work of bringing quality cryptocurrency information and research!
BTC: 17itKMT4ombkPech3hktVrVw5t2PDHZ6mv
ETH: 0x5da87fa52224ba44ac53482b7df4582512f7b8a6
LTC: LdLuQKkKGoKSBhvAmth8dPjMQkNv4r89nu
