A Gold Standard-based Cryptocurrency.
The Digix Platform is based on the Ethereum-blockchain and aims to offer a stable token by issuing tokens based on the gold standard. The goal is to create a standard, stable decentralized currency that is not subject to the volatility of other cryptocurrencies that are currently on the market.
The Digix Platform’s DGD Token Functionality
The DGX Token
Each Digix Token (DGX) will be produced based on a Proof of Provenance (PoP) algorithm, whereby 1 DGX will be minted per 1g of gold stored in the Digix Platform’s coffers, according to the specifications of the Digix’s Minter Smart Contract.
Digix (DGX) Token Purchase Structure
DGX can only be purchased once the user has uploaded a Digix Proof of Provenance (PoP) card onto their Ethereum-compatible wallet. All DGX purchased by them will then be stored on their PoP card. This system is in place as an extra level of security against hackers and fraud, while also performing several other functions, including:
- Record of card issuance,
- SKU of the gold bar that each DGX is based on,
- Purchase and depository receipts,
- Chain records of all transactions.
This set-up will also provide transparency on all levels, from initial purchase of the gold, to the auditing of the stock, to the tracking of all transactions by means of smart contracts. As an extra security measure, users will be unable to log in online. However, they will have to download a desktop app via Github and interact with clients through their desktop. Furthermore, due to the decentralized, blockchain based nature, DGX tokens will continue to exist assets independently of Digix itself. This means that should the company be liquidated, the users will still be able to access and trade their DGX.
Accountability/Proof of Authenticity
- Asset Vendor – All gold bars are purchased through ValueMax Singapore and are certified with the London Bullion Market Association.
- External auditor – Digix stores will be audited quarterly by the Bureau Veritas Inspectorate, which is an independent auditing firm. They will be responsible for stock take, as well as testing the authenticity of the gold bullion.
- Storage – storage of the gold bullion will be outsourced to Malca-Amit where they will be guarded in secure, climate-controlled facilities.
Future functions envisioned by the Digix team include
- Users can allow for DGX to be inherited at their passing, by implanting a mechanism allowing for their DGX to be transferred to an Ethereum Wallet address specified in their contract.
- Users could use DGX to by in-app tokens on gaming platforms.
- DGX could be used as a secure alternative for Escrow agreements.
- Other digital platforms could accept DGX as a stable source of currency when crowdfunding.
- Users can lend money on a peer-to-peer basis without fear of extreme interest caused by cryptocurrency volatility. However, both users could still set terms in the smart contract that allow for automatic interest and incremental payments.
Accomplishments to Date (as of April 29, 2018)
- January 2018
- Digix partners with Republic Protocol who are working on a platform that allows for inter-chain trading, thereby allowing for both bitcoin and Ethereum to be tradable on the Digix Platform.
- Final draft of DGX 2.0 application sent for security auditing by New Alchemy.
- March 2018 – Platform features and programming are being developed and tested.
- April 10, 2018 – The Digix platform mints its first DGX coins.
(as of April 29, 2018)
March 30 (12 hrs), 2016
1 DGD = $3.4 USD
$5.5 Mill USD
$5.5 Mill USD
1 DGD = ~$272.24 USD
2 Mill DGD
~$544.5 Mill USD