Steemit Crypto Academy week 7: Stable coins - Part2 DGX(digix) | lecture by @yohan2on

INTRODUCTION

Consider how difficult it is to use Bitcoin or any other cryptocurrency for day-to-day transactions and trading when it is worth X one day and half that the next. Consider what it's like to be the guy who paid 10,000 BTC for two pizzas eight years ago. This is where stablecoins come into play. Simply put, stablecoins are an attempt to create a non-volatile cryptocurrency. The value of a stablecoin is linked to a fiat currency in the real world. As I stated in my previous article.

What is DGX or digix?

Image Source fom Menitone.com

DGX is a gold-backed digital token created by DGX, a Singapore-based blockchain startup. Let's look at what makes DGX so special. Gold has always been a safe and stable store of value, but its physical properties make it nearly impossible to use in everyday life.


Gold has become a forgotten dream for most people, a valuable asset that is now cumbersome and out of control, sitting within vaults and exchanged amongst investors across layers of paper contracts. But what if gold, in a highly protected digital form, was open to everyone? What if gold was made more accessible and important in the digital age?

This has now become a reality, with each DGX token representing one gram of gold securely deposited in a vault. Only two factors allowed for the development of this asset-backed token:

Image Source is from Crypto Adventure Org

• One, the etherium blockchain provides the dgx token with a highly protected distributed ledger that safeguards the dgx token order while also providing a global platform for exchange;

• and two, dgx developed an extremely detailed and straightforward token development mechanism that ensures that dgx tokens can only be created after gold has been added to the vault and subsequent documents submitted when physical gold is obtained.

How reliable is DGX?

Image Source : https://www.custodianvaults.com.au/news/abc-refinery-lbma-accreditation/

• The gold deposited must be 99.99 percent pure gold cast bars from an authorised London Bullion Market Association Refiner and must be accompanied by all applicable paperwork. DGX is minted at a ratio of 1 DGX for every 1 gram of gold.

• During this process, all certificate photos and documents are uploaded and made publicly accessible via the asset Explorer. This careful minting technique ensures that the total number of DGX tokens in circulation is always equal to the amount of gold in the vault.

Benefits of DGX

Since DGX is backed by physical gold, its market price should be closely associated with gold bullion's buy and sell spread. The dgx token is available for open market trading, and its price can fluctuate depending on where buyers and sellers meet, whether as an investment or a shield against financial uncertainty.

• Gold has proved to be a safe investment.
• DGX is 100% backed by physical gold, and users can convert their dgx holdings to physical gold at any time. This is referred to as recasting, and it comes in 100 gram quantities. The value of DGX tokens on the open market is determined by their asset backing.
• DGX is a digital token on the Ethereum blockchain that you can send, receive, or exchange with everyone in the world at any time. You have full control over your digital asset and can choose which one to use.
• Since DGX is a digital token, transactions can be made to multiple decimal places. For example, someone might buy 0.16 DGX or send and transact with 12.4 DGX; the choice is yours.
• DGX is an etherium native blockchain token ERC 20 with incredibly high protection. This ensures that DGX transactions and the total supply can't be tricked or abused, and tokens can only be transferred by anyone who has the private keys to the respective blockchain address. In short, you own and manage the tokens inside your etherium wallet.

CONCLUSION

As discussed by professor @yohan2on in this week's lecture about stable coins part 2 is that not stable coins are literally stable in nature it depends on that third party or the organization or commodities whatever you call it that is backing that particular stable coin. The reason I chose DGX is that it is backed by gold which is a great way of investing in to the future unlike any other stable coins which are pegged by dollars that is somewhat volatile right? which can be affected by economic crisis or political issues.

Special regards and thanks to;
Cc: @steemcurator01
Cc: @steemcurator02
Cc: @steemitblog
Cc: @yohan2on