There are very few different blockchain technologies nowadays. Many projects simply use the name of blockchains to gain funds and make tokens. Very few developers think about the general public and make a genuine platform that can be easily managed. Among all the blockchains, DigixDao is one that impressed me the most. However, it is not that popular. On the other hand, investors are wondering if they should buy bitcoin and if it is worth investing their money in it.
DigixDao is a system of applying for the possession of gold. Before telling you anything else, I would like to make it clear why only gold is chosen more than anything else.
Why gold?
To understand the concept, we should start with the market of gold. Right now, it has been measured that there’s around $8 trillion in the gold present around the globe. Gold has been present here for centuries and is seen as a secure resource. We can compare gold with cryptocurrencies because both are high in demand and are stored by people for gain. Gold and cryptocurrencies are available in limited quality only. Though the gold has been present for a long time and its exact quantity is already known. The price stability quality of gold makes it the most reliable investment for the investor. However, there might be some risk in investing in gold because of the increasing number of scammers. There are also special storing facilities in banks for storing gold, but it is not considered safe. Also, the bank charges some for storing gold.
Meaning of DigixDAO
DigixDAO stands for Digix Decentralized Autonomous Organisation. The main motive of DigixDAO is to form a cryptocurrency that is supported by the gold itself. To participate in the decisions relating to operations one has to purchase the DGX tokens on sale. These tokens grant the individual voting rights and also enable them to gain rewards and other benefits. A single token is considered equal to 1 gram of gold. Earlier, bitcoins used to be considered digital gold but now things have changed because of the increasing competition and entry of new firms.
What makes DigixDAO unique?
DigixDAO is different from the other investment opportunities. Its first aim is to make an asset that is liquidated and can be easily exchanged. It ensures that gold prices remain stable and can be traded for money anytime. With the help of DigixDAO, the investor can use the gold anytime without worrying about its safety.
How are DGX tokens distributed?
DGX tokens are distributed through a protocol known as Proof of asset (POA). All the assets are recorded on the blocks on the Ethereum blockchain. But how are the asset cards validated? Well, these are validated through a digital signature from the cardholder. The process is kind of complex. DigixDAO has its own storage house located in Singapore, and they are also planning to expand it because right now, it can only store up to 30-ton gold.
The DGD tokens
The DGD tokens give you an extra authority in the management. You can decide how the funds should be allocated and make decisions regarding the operations.
The key feature of DigixDAO
DigixDAO is highly appreciated by people because of its unique features. Investors want to invest in gold because of its price stability, but keeping it is riskier and requires high security. Through DigixDAO, this problem is solved as gold is stored digitally. With the help of DigixDAO, investors can invest in gold free-minded without any tension.
