Review on DigixDAO by Gabriel Medina
The Gold Token
The tokenization of the economy is a new concept for many, although a reality that has become tangible. This platform serves precisely for the tokenization process.
What is it and what problem is it trying to solve?
This platform seeks to become a self-organized community that is actively involved in decision-making and chooses the direction in which the project will move. For this reason it is a DAO.
It is a platform built on the Ethereum blockchain and works, basically, to tokenize assets of any kind. It provides the necessary infrastructure to carry out the process of tokenization of physical assets and the verification of their existence through a chain of custody.
How does it work and why is it a unique project?
The platform provides the necessary infrastructure so that businesses or individuals can tokenize in a relatively simple way. To do this, it uses a consensus mechanism known as proof of provenance (PoP). This protocol was designed by the Digix team to be able to track the movement of physical assets such as gold or any other. This will allow the tracing of the change of hands, from the bullion supplier to the escrow vault in a transparent and secure way.
It is a unique project because it is one of the first cryptocurrencies to address a tokenization solution for physical assets, which is why it is a unique proposal.
Conclusion
Digix may have continued growth for futures. This is due to the stability that investors can see in their offer and the security they will have of each gram of gold. We have many positive aspects such as investment without the real need to buy the asset in physical form and as an addition to this, it has plans to allow the use of tokens in common transactions like any other cryptocurrency. Your backing in gold creates opportunities for your disposal in other areas, such as inheritance, gamification, trusts, and utilization in loans and microfinance.
Pros
- Infinite possibilities for the type of tokens which can have an interesting and massive use.
- It is backed by a precious mineral such as gold, so it will have a stable and efficient value for people dedicated to trading.
- Thanks to this platform, people will be able to buy any amount of gold directly, either using DigixDAO's own coins or any other.
Cons
- It cannot be extracted in any way, neither with computers nor with hardware. Despite being on the Ethereum blockchain network, being backed by gold, it simply cannot be mined.
