It’s time to talk about two key developments of DinarDirham. Those are the smart contract system GoldSmartContracts, and DinarCoin – a crypto token and a digital currency, built on top of Ethereum Blockchain.
In addition to all the basic qualities of a digital currency: anonymity, decentralization, open-source availability, liquidity, DinarCoin has one unique and innovative feature: its value is pegged to and backed by real physical gold, and is comparable to gold spot contract (XAU). Thus, being tied to the precious metal, the currency is maximally protected from inflation. Using MT4 trading platform custom built solutions, DinarDirham is capable on hedging and bridge the liquidity “realtime” on every DinarCoin and GoldSmartContract created. With this technology, indirectly we can make sure each token is pegged at the current world price of gold and recorded on the Ethereum public blockchain in a transparent way and as a proof of purchase.
Stelian Balta has shared the expectations his company has for DinarCoin:
“DinarCoin is not just another digital currency or altcoin. It’s backed by gold price from liquidity providers, bridged automatically to regulated financial institutions and also stored in real vaults around the world. We are building an entire ecosystem around DinarCoin – exchange, DinarCoin ATM, merchant gateway and debit cards to allow our users to use their digital assets anywhere in the world. Also, physical Dinar Gold Coin(4.25 grams) is already available to order in South East Asia.
With DinarCoin, our mission is to bring stability and transparency to the financial system, especially in payments and as a medium of storing wealth in a trustworthy way. Using Ethereum blockchain, I think we are on the right path”.
Gold Smart Contract or GSC is another digital asset created and utilized by DinarDirham. GSC is a system of smart contracts, each contract represents the ownership right of a particular customer to a particular physical gold bar stored in vaults around the world(Zurich, London, Dubai, Hong Kong, Singapore, Bangkok, Australia and New York) in partnership with ABX.com as “Associate Member” to offer physical gold to customers,each contract is issued by the gold supplier after a client conducts a purchase of a certain amount of metal; that contract can consequently be used to collect gold from one of many available vaults. Just as DinarCoin, GSC are registered on public Ethereum blockchain, so that the existence of each contract can be confirmed by looking at those.
“I think DinarCoin and Gold Smart Contract are game changers in the industry. We bring an innovative concept to our customers to store or move their wealth easily and secure”, – Stelian Balta says about his company’s creations. – “Digital assets are backed by real gold liquidity and assets from regulated financial institutions, which have the reliability, inherent value of gold, convenience and security of a digital currency.”
Assigning a “game changer” status to any development is quite a bold and responsible claim. However, the recent trend shows that today there are many who truly believe in the concept of a cryptocurrency backed by gold. This becomes especially obvious if you pay attention to the number of similar projects which are being unveiled right now.
Manie Eagar is one of the experts who support such outlook:
“[Gold-backed cryptocurrency] can be a game changer indeed. The potential application of a variety of blockchain platforms currently under development provides for a range of applications leveraging cryptographically secure shared ledger and smart contract features. Security and trust is paramount when storing and trading digital assets and value exchange and and the ‘consensus engine’ enables a whole new dimension of digital asset registration (think identity, verification and validation), storage, distribution (think supply chain management), value exchange and settlement.
Obviously governance, risk, auditing and compliance are foremost in international traders minds and the blockchain provides the a 21st century solution to these challenges”.
Ismail Malik also expresses a positive point of view:
“I think a gold-backed digital currency can bring stability in the industry and allow for new type of derivatives to be designed and traded. For thousands of years citizens have desired the ability to trade, own and gift gold in a manageable way and now we have the technology to enable this.
It will surely change how gold is stored and distributed with a new type of custodian relationship being created and enabled by the blockchain. This will also reintroduce gold-backed currencies into global circulation over time around the world. Innovation leaders such as DinarDirham are doing a tremendous job in bringing this type of innovations in gold to the marketplace.”
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