Review on DigixDAO by francis fernandez
DigixDAO (DGD) - A Gold-Backed Blockchain
DigixDAO is a platform created for the purpose of trading gold through the use of cryptocurrencies; thus facilitating its storage.
DigixDAO is part of a global ecosystem called Digix. It is an autonomous decentralized organization made up of members who hold DGD tokens; who are responsible for making decisions regarding the growth of the Digix ecosystem.
In this sense, the amounts of gold of each user will be equivalent to tokens within their wallet.
The platform has two tokens with particular infrastructure and functions based on the Proof of Assets (PoA) protocol:
1-DIgix Gold: Represented by the acronym DGX. These tokens are obtained by the participants in charge of making decisions regarding the growth of the Digix ecosystem. They receive DGX tokens that are equivalent to 1 gram of gold and that are divisible by 0.001 grams.
DGX tokens are created by using smart contracts that support PoA cards and generate token units for every gram of gold.
DGX token owners can also choose to trade 100 DGX tokens for 100 grams of physical gold; which are delivered to you in person or sent by mail. This operation would cost you 1 DGX token.
2-DigixDAO: Identified with the acronym DGD. These tokens work in sync with the DGX tokens. Their owners are committed to supporting or not supporting the proposals regarding the improvements of the global Digix ecosystem and the adoption of DGX.
Both DGX and DGD tokens can be stored in any Ethereum-compatible wallet such as MyEtherWallet and can be acquired through the use of BTC and ETH for which they must be previously converted to these coins.
The operation of these tokens used to represent gold is based on the smart contracts technology of the Ethereum chain. In this way, the Digix platform performs the administration and commercialization of the gold, guaranteeing security, immutability and transparency during the operation.
The purpose of using gold as a backup source for the digital currency is to guarantee its stability within the crypto market.
What does the PoA protocol bring to cryptocurrency?
Proof of Assets (PoA) is Digix's protocol responsible for validating the existence and ownership of an asset (in this case gold) on the decentralized ledger of the Ethereum blockchain.
Pros
- Allows you to buy gold using cryptocurrencies for easy storage and security.
- Their digital currency, being backed by gold, maintains its exchange stability.
Cons
- The platform token cannot be purchased with fiat money; but only with cryptocurrencies.
- It only supports Ethereum wallets.
