GOLD – a new gold cryptocurrency standard

by Newson Graham · June 8, 2021

For centuries, gold has served as an instrument of wealth accumulation as well as a means of payment and confirmation of one’s status. Nowadays this precious metal has found its application in medicine, electronics and other industrial fields. However, gold did not lose its role as a reserve and a store of value. If you consider that the amount of metal on the planet is limited and the need for it is only increasing, then it is safe to say that in the future the value of gold will only grow.

How to accumulate a gold reserve

Back in the first half of the last century, many national currencies were backed by the so-called “gold standard. Conventionally speaking, each unit of money could be exchanged for a predetermined amount of gold. However, with the development of industry, economy and world trade turnover financial regulators decided to abandon this approach.

Now, to build your own “gold reserve,” there are several ways:

Buy gold bars,
investment coins,
impersonal bank accounts,
jewelry.

Each method has its advantages as well as its disadvantages. Only an impersonal account allows you to buy fractions of a gram of precious metal, while others are limited to measured units. And if we speak about jewelry, there are less problems with its purchase, but its selling price in the secondary market can be many times lower than the initial price.

Digital GOLD – secured ERC-20 token

With the development of cryptocurrencies, another option has emerged – secured cryptocurrencies, where gold acts as a reserve. There have been several attempts to create this kind of stabelcoin, but most of them failed for one reason or another.

One of the main problems with the cryptocurrency gold standard was security. The peculiarities of cryptocurrency organization did not allow, for example, to attract enough computing power to ensure uninterrupted operation of the network, which led to 51% attacks. And that’s where Ethereum came to the rescue, with its ERC-20 token standard.

That’s how the token from Digital Gold appeared. The peculiarity of this cryptocurrency is that each of its units is secured by physical gold of 999 standard, which is in a safe depository in Singapore. The actual collateral can always be viewed on the official website, where documents confirming the deposit are posted.

Thus, users have the opportunity to purchase impersonal physical gold without the need to resort to the services of banks. The storage of the precious metal is also simplified. The address of the wallet, as in other cases with cryptocurrencies, can be stored in different ways, preventing the possibility of access by third parties.

Features of Digital Gold
The main advantage of the GOLD token is the transparency of the collateral, which not all secured cryptocurrencies can boast of. One can also highlight: