Digix Assets are creating a New World of Possibilities
Background on Ethereum
Experts describe Ethereum as a new decentralized Internet ecosystem. In more concrete terms, Ethereum is a decentralized open source Internet platform. The system’s development began with Vitalik Buterin in 2013 and later, in 2014, attracted Gavin Wood. The public launch of the Ethereum blockchain successfully took place in July 2015.
While most user’s view Bitcoin as a decentralized ledger, store of value and secure online transfer mechanism, Ethereum is described as a decentralized digital framework able to host third-party software programs. Ethereum offers a platform on which other platforms can be built creating the infrastructure for that new decentralized Internet ecosystem.
Bitcoin differs from the digital units that are currently circulating on Ethereum. This new currency, known as Ether, is more of a token that is used to power tools and applications functioning on Ethereum. Unlike Bitcoin, Ether is not likely to be used as digital currency for everyday consumers. Applications constructed on top of Ethereum will use Ether units to power their operation.
Ether fuels third-party software packages on Ethereum. “Third party software” refers to Decentralized Applications (DApps). A DApp can be designed and created to achieve programmable service, run an entire project, or directly operate any programmable tool. This activity could also include DApp’s for the operation of new cryptocurrencies or asset transfer platforms.
By using DApps, online value, such as digital currency or digital assets, can effortlessly circulate over the decentralized Ethereum network. Digix Gold Certificates are a prime example of this new decentralized digital asset.
Digix is an asset ownership certification and tokenization platform for physical assets. The Digix system operates through the Ethereum Blockchain.
Any user that purchases and stores gold bullion through Digix custodial vaults in Singapore can easily convert those physical assets into digital certificates and tokens. These units can then freely circulate through the Ethereum network. The monetary value of this digital gold directly corresponds to the everyday price of gold. Each Digix certificate can be bought, sold, transferred, borrowed against or even divided into smaller units.
Digix has developed a secure digital gold product that utilizes the robust features of cryptocurrency while remaining connected to physical assets such as gold bullion. Digix assets are not limited to just precious metal; the system is arranged to store any valuable asset and produce a Digix PoA Certificate.
The innovative vision of DigixGlobal executives has also achieved the first of its kind partnership between DigixGlobal (Ethereum) and a leading Bitcoin-based service company. On October 26, DigixGlobal announced a formal partnership arrangement with Coinify, a leading Denmark-based Bitcoin platform. The agreement states that all bitcoin payments to be received by Digix will now effortlessly flow through the Coinify system.
This new Digix arrangement not only highlights a commonality between the two decentralized platforms but also creates a convenient entry point for fresh money and value flowing into the Ethereum network. New bitcoins are entering the system through Coinify, and this activity will generate liquidity and promote the formation of new assets on the Ethereum platform. This mutually beneficial partnership is considered a leap forward for the digital currency community.
For both merchants and consumers, Coinify technology has been a critical driver in the global adoption of bitcoin. Retailers benefit from Coinify’s Payment Service (PSP) while participating customers can take full advantage of payments through the Coinify secure, one-click payment service without revealing any personal information during a transaction.
Digix also benefits from the existing relationship between Coinify and the Single Euro Payments Area (SEPA) network. Coinify already accepts transactions from this network and provides digital currency services in 34 SEPA countries.