Gold holds a special place in the global financial system. The precious yellow metal has for centuries remained the backbone of the economy by being an efficient store of value. However, being a physical asset, there are difficulties associated with carrying, storing and even liquidating the asset for cash equal to its actual worth. GoldMint, a blockchain company, is making it easy by incorporating cryptocurrency technology into transactions involving the yellow metal.
Nowadays, people can purchase gold from selected places, like a jewelry store or designated banking and financial institutions. The process, especially in institutions involves a lot of time and paperwork. Thanks to the emergence of gold vending machines, the process of buying gold is becoming easier.
With gold being a valuable financial asset, it can be used as a security or collateral to raise the necessary funds through loans. Even though it is short of selling, it has its own challenges just like selling or pawning gold. Presently, there are very limited options available. Individuals looking to sell or take a loan on the gold they own are forced to go to jewelers or pawn shops, where they subject the gold to tests and usually offer a price much lesser than its actual worth at a higher interest rate (in the case of loans).
GoldMint’s Solution to Gold Vending Issues
GoldMint is solving all these problems by tokenizing actual gold over blockchain. The system incorporated by GoldMint also makes it easier for the company to automate the whole process using the right equipment and smart contracts developed over Graphene blockchain. For the convenience of the community, GoldMint is introducing Custody Bot, a device that acts as a gold vending machine but in the opposite direction. While most vending machines automate the process of purchasing gold, the Custody Bot enabled equipment automates receipt of gold deposit as collateral or security.
The GoldMint Custody Bot allows people to deposit the gold they own, get it analyzed and once the quality is ascertained, the bot will transfer the received gold into one of the 40 secure storage boxes within it and records the deposit parameters on the blockchain. These records help maintain transparency of the transaction while providing a proof of deposit to the user. Based on the parameters, Custody Bot can issue GOLD tokens equivalent to the deposited gold. Alternatively, the deposit records on the blockchain can be utilized by partner institutions to issue fiat loans or line of credit. GoldMint makes such third-party integrations easier by offering APIs to businesses and banking institutions.
GoldMint’s Custody Bot is made of four major components: A gold retrieving mechanism, a gold checking and analyzing mechanism, individual gold deposit boxes and a Linux operating system. The secure storage facility accepts gold through the receptor (retrieving mechanism) and subject to inspection using inbuilt scales and spectrometer. Once the analysis is complete, the smart contracts will help determine the value of product and records on the GoldMint blockchain.
The Custody Bot backed by blockchain is a huge step in the cryptocurrency industry. So far, none of the several blockchain projects have attempted to create an interface between actual physical and tokenized gold. Most of the gold backed assets are similar to ETFs, where each token is supported by a certain quantity of gold and users have an option to either trade it for other cryptocurrencies or fiat. They implement certain conditions, that needs to be satisfied if the token holder wishes to claim the real-gold backing their tokens.
With Custody Bot enabled gold vending machine, GoldMint is enabling people to buy tokens with actual gold and use it trading and executing instant transactions.
GOLD and MNT Tokens on GoldMint
GoldMint has come a long way to create a blockchain based two-way gold vending platform. The GoldMint platform is powered by GOLD and MNT tokens. The GOLD tokens are crypto-assets that are backed by actual LBMA gold. Each GOLD token is supported by 1 ounce of LBMA gold and carries an equivalent valuation.
MNT is a utility token on the GoldMint platform which is used to execute blockchain related operations including smart contract creation, issuing block creation rewards and for transaction confirmation. The MNT token holders, for their contribution to the platform, receive 75% of the commissions collected while executing GOLD transactions.
GoldMint recent held its Pre-ICO campaign, raising over $600,000 in under 36 hours. The main ICO will begin on September 20, 2017, with early bird bonuses.
Those interested in being part of the upcoming ICO can refer to GoldMint website for further information.
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