How DigixDAO Works: Guide To Its Tokenized Gold System

The coming altcoin news inspire us to share the story of one token named DGD and the organization behind it, DigixDAO. As you probably know, the project plans to create a new cryptocurrency backed by actual bars of gold. DigixDAO is the Digix Decentralized Autonomous Organization, a group of participants making decisions about how to grow their ecosystem. But how DigixDAO works in detail – and how can the process of tokenized gold help investors?

Well, all of the DGD token holders will make decisions related to any proposals submitted to DigixDAO. As a reward for voting and decision making in the growth of the project, DGD holders receive rewards related to DGX, another token that represents 1 gram of gold.

Thus, the tokenization of gold aims to provide stability and store of value in the crypto space. While Bitcoin is often referred to as digital gold, DigixDAO is referred to the cryptocurrency which can actually digitize actual gold and provide ownership.

In order to distribute DGX tokens representing 1g of gold, Digix uses Proof of Asset (PoA) in a process which involves recording possession of an asset on the Ethereum blockchain and the creation of PoA Asset Cards.

“The asset cards are certified using sequential digital signatures from the entities in the chain of custody, namely, the Vendor, Custodian, Auditor, which are further validated with proof of purchase and depository receipts provided and uploaded onto the InterPlanetary File System for permanent record

Located in Singapore, the Custodian Vault is The Safe House. The independent Auditor is Bureau Veritas Inspectorate while the Vendor is ValueMax Singapore.

Seeing how DigixDAO works, it is also important to note that the Proof of Asset cards are stored on the Ethereum blockchain and contain:

• Timestamp of card creation
• SKU of the gold bar
• Bar serial number
• Chain of custody digital signatures (Vendor, Custodian, Auditor)
• Purchase receipt
• Audit documentation
• Depository receipt
• Storage Fees due

The DGX tokens, on the other hand, are created by a smart contract that receives PoA cards and generates these tokens for each gram of gold. For instance, if a 100g PoA card is sent to the smart contract, 100 DGX tokens are created and then sent to an Ethereum wallet. In each case, a DGX token represents 1 gram of gold and is divisible to 0.001g.

For more information on the entire project, follow our cryptocurrency news daily or visit DigixDAO’s website.