Digital Gold: making a landmark in the crypto space
Early civilizations valued Gold, because of certain characteristic properties it possesses, such as durability, scarcity, colour, reminiscent of the sun and so on. Some have even gone far as worshipping it. You could remember the gold calf statue made by the children of Israel when Moses went to Mount Sinai? This is because they attach so much value to it and they see it as being extraordinary. How then will gold not be highly valued? Although, that is to tell you the extent to which some people adore and adorn it. Also, because of the high demand for gold, coupled with its scarcity, the price continues to increase every year. Yet, a lot of demands are not met, which mostly is because of the protocols, rules and law that need to be followed.
Digital Gold Platform
Instead of going through the hassles involved in the purchase and ownership of gold, Digital Gold platform has however made the process easy for everyone, in which a token backed-up by physical gold is issued on Ethereum platform, through its smart contract. This has however made the entire process to be decentralized. On this platform, transactions are automatical executed through the smart contract without any stress. The token which is issued through the Ethereum platform is called a GOLD token.
Relationship between Gold token and physical gold
Through the influence of blockchain technology, it was possible to create a cryptographic token that is backed up by physical gold. The token, which is the GOLD token is an equivalent of the physical gold both in quality and in value. A single token of Gold equals one gram of 99.9% pure physical gold. For every GOLD token that is produced, one gram physical gold is bought by Digital Gold company, as a representation of that GOLD token, which is kept in a well-protected vault.
There is an assertion that Physical Gold increases in value with time, which is also seen evident on a GOLD token. So it mimics that value of the physical gold itself. The only variation could be brought about by the general market condition, which is always minimal.
GOLD token as a stablecoin
Yes, this is not just an imagination. The GOLD token is truly a stable coin because it assumes the stable price of physical gold in the market. This stability is brought about by the relationship between the GOLD token and the physical gold. To further strengthen it, adequate liquidity has also been provided by the Digital Gold company, both on the gold marketplace on their platform and on the different exchanges housing the trade of GOLD token.
Why is GOLD token not affected by cryptocurrency volatility?
As earlier stated, the GOLD token is a stablecoin that has been well established, to assume the price of physical gold in the market. The price of physical gold itself is stable and there is a yearly increase in price, although, it might appear not to be rapid. The nature of cryptocurrency generally is volatile, but that does not have any effect on the GOLD token, because it is already backed up by physical gold.
There are many ways to solving a problem, but one of them is definitely unique. The uniqueness of creating an ecosystem that makes it possible to buy and sell Digital Gold, a true representative physical gold on blockchain technology is an achievement, which is insurmountable by any other related project, except they decide to mimic Digital Gold project. This is truly a landmark in the history of cryptocurrency.
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