Home » What is Comtech Gold (CGO) and how does it work?

What is Comtech Gold (CGO) and how does it work?

by admin

The rise of digital gold could disrupt the industry like never before.Historically, gold has World currency as a hedge against inflationIt also serves as an investment venue (commodities) and is often preferred over other asset classes such as equities and forex, especially in traditional markets.

However, owning physical gold has certain drawbacks, such as the inconvenience of transportation and storage, and the risk of theft. Gold Exchange Traded Funds (ETFs) may come across as an alternative option, but traders don’t actually own the gold, they pay the same taxes as gold bars and bars, and Don’t forget that investors have to pay too. The annual membership fee is about 0.4% to 1%. Gold includes all forms of metal such as coins and bars, while bullion includes all the exchangeable physical forms of other precious metals such as silver and platinum.

In contrast, Digitized gold stored on blockchain Comes across as a robust option. This is where Comtech Gold (CGO) comes in. Advantages of blockchainCGO solves a common problem in gold trading by rolling out a 100% gold-backed cryptocurrency.

CGO caters to the needs of corporate investors as well as individual investors. This eliminates the need for retail investors to visit local markets to buy gold.Furthermore, it Better for institutional investors By putting aside the need to store gold in physical form.

Introducing Comtech Gold

Commtech Gold has added another dimension to gold trading by issuing standardized digital gold backed by 100% physical gold. Built on the XinFin XDC network, an advanced blockchain, the project is Sharia compliant and certified by one of the UAE’s renowned Sharia scholars groups.

Digital gold can be converted into physical gold at any time, thus solving the storage and transfer issues associated with gold. The fragmentation of precious metals makes investing in gold more popular.

CGO token holders physically own gold in equal proportions. Each holder is entitled to a certain amount of gold, which may not be the specific bullion submitted. The arrangement works like a bank. hand over banknotes of a certain amount Exactly as requested by the person withdrawing, but not necessarily the same as depositing cash.

underlying physical gold

Each Comtech Gold token represents 1 gram of gold and the price is subject to prevailing international gold rates. Tokens are fully backed by gold bars identifiable by bar number. These are standardized 1 kg bars with a purity of 999.9.

Anyone who has a gold-backed token can convert it into a physical 1 kg gold bar. If an investor has gold tokens equivalent to 1 kg (1000 CGO tokens), he can physically submit a request for a token submission of 1 kg gold bars.

As Comtech Gold’s network grows, you will be able to purchase tokens and redeem them at any time in recognized retailers’ shops for small denominations.

Sharia compliance

Entirely based on Shariah principles, Commtech Gold will create an ecosystem where the physical gold associated with each gold-backed token is identifiable and separable. Each transaction culminates in the actual delivery of tokens from the seller to the buyer, as required by Shariah compliance. All aspects of the token are fully auditable, from creation to redemption.

The Shariah certification (fatwa) was issued by Amaniye Advisory Group. Shariah compliant investment areas Islamic financial solutions. Backed by guidance from the Advisory Team, Commtech Gold Sharia certification will be provided after ensuring that the Commtech Gold Token structure, mechanisms and relevant key legal documents meet all required Shariah requirements. I was.

This accreditation is in line with Islamic rules and standards as defined by the Authority for the Audit of Islamic Financial Institutions (AAOIFI).

vault and storage

The underlying physical bar of gold tokens will be stored in Transguard, a globally recognized vault. The audit trail is fully complete under the user’s wallet account. Users can use the wallet to view their balances and transfer tokens.all wallet is encryptedallowing access only to the owner.

Storing gold has always been a pain, whether at home or in a bank, due to security and convenience issues. However, Comtech Gold allows users to store gold in tokenized form, move their possessions and dispose of their investments at will.

Tokenization of physical gold

Gold is a precious metal and investment is financially impossible for many people. Digitization of gold leads to partial investment, can be purchased at a low price of 1 gram, greatly broadening the horizons of investors. Comtech Gold facilitates purchases as low as 0.01 grams.

Comtech Gold allows users to deposit their personal physical gold in standardized 1-kilogram bars and acquire tokens for it. Investors holding coins worth 1 kg or more of gold can cancel their tokens in exchange for gold equivalents in multiples of 1000 tokens (1 kg gold). Here are the steps:

Regulatory oversight, working with gold custodians with a proven track record, and escrow accounts ensure all concerns are averted.

How does Comtech Gold work?

Based on the XinFin XDC Network blockchain, the Comtech Gold protocol will support all Advantages of a decentralized ecosystemTokenization makes holding and trading gold assets much easier compared to physical gold. Additionally, unlike fiat currency and physical gold, tokens are much more liquid.

Native CGO tokens stored on the XDC network’s blockchain can be managed by users through wallets that support XDC network’s XRC-20 tokens. Users can view token balances and transfer tokens to recipient addresses using the XDC network. Once the transaction is complete, the user can see it in her XinFin XDC Network Explorer. The entire trading process is completed in seconds and there are almost no transaction fees.

when CGO Token Transfer, the user will have to pay the standard gas rate along with the surcharge for the CGO transfer. For example, if a user needs to transfer 20 CGO from one her XRC-20 address to another, he may need to send 20.003 CGO to cover the fees charged. . This fee helps manage the protocol and vault. No storage fee.

Since CGO relies on actual physical gold, the price follows the international gold price closely. Market-related ups and downs in the offline gold price are reflected in the price of the CGO token.

product of the times

We live in an age when almost parallel worlds are developing in the digital world. Millennials prefer to process all their assets online, from bank assets to stocks, and digitized gold is a natural extension of their operations.

asset-backed token Commtech Gold not only solves the problems that pervade traditional gold buying and trading, but also offers many advantages over products such as gold ETFs. Dividing the underlying assets also helps investors who have stopped investing because gold-related investments were not financially viable.

As technology advances and the ecosystem becomes more streamlined, it is likely to start gaining more traction.

buy license for this article. Powered by SharpShark.