GoldMint Revolutionizes the Pawn Shop Market With Digital Gold And Robotized Storage



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Gold, a historically safe asset, stands to become more liquid and easier to trade, thanks to cryptocurrency and blockchain technology. Cryptocurrency and blockchain technology are enabling the gold industry, which has been saddled with unique requirements, to become more transparent and vibrant.

Transparency has been especially difficult for pawn shops because they primarily deal in cash. As businesses that lend out item-secured loans, pawn shops must also pay for storing and valuing precious metals. These requirements have made it difficult for pawn shops to attract financing. In addition, these businesses are not able to sell pledged property before the end of the loan.

All these factors force pawn shops, which are used by more than 500 million people worldwide, to set interest rates as high as 140%.

GoldMint Offers An Alternative

In 2017, GoldMint, a Russian and Singaporean company, launched a gold-based cryptocurrency called GOLD to give pawn shops an alternative to cash and make it easier for them to secure financing. Unlike other blockchain initiatives, GoldMint uses a unique proof-of-stake consensus solution.

In addition to introducing GOLD cryptocurrency, GoldMint developed a robotized gold storage machine called Custody Bot that can weigh and value gold items and store the assets on a proprietary blockchain.

The inspection, deposit and withdrawal details are stored on the blockchain which can be accessed anywhere, any time. The Custody Bot can also generate a cryptocurrency wallet for the customer in case they don’t have one.

GoldMint developed the blockchain in partnership with Sumus, a provider of blockchain services. GoldMint describes the consensus algorithm that Sumus designed for larger blockchain networks in a blog.

Assets Backed By Physical Gold Or Futures

GOLD assets are fully backed by physical gold or delivery futures.

The tokens are exchanged on the Chicago Mercantile Exchange and Singaporean Precious Metal Exchange under delivery futures provided by Wedbush Securities, an investment banking and brokerage firm that follows cryptocurrency. One GOLD has the same value as one ounce of gold on the Chicago Mercantile Exchange.

The gold itself is stored in U.S. Federal Reserve System banks, Singapore’s SGPMX or at Brinks under delivery futures. GoldMint’s gold reserves support or exceed the amount of GOLD assets in circulation.

GoldMint buys back GOLD, posts the transaction documents on its website and runs regular third-party audits of its assets, which ensures the transparency and reliability of all GoldMint activity. GoldMint buys back GOLD based on its current price on the Chicago Mercantile Exchange.

Conversion To Fiat Made Easy

Customers can sell their GOLD assets and convert them to fiat on an exchange or in a Custody Bot, which is normally found at a pawn shop. GOLD assets initially come either from GoldMint or from investors who earn interest from financing gold-secured loans.

If a borrower wants to receive GOLD for a gold item, the assets are transferred to his cryptocurrency wallet. If a borrower needs cash, Custody Bot creates a unique wallet to which the assets are then transferred, which in this situation serves as an exchange point. The borrower then receives the equivalent in his desired currency. In such a scenario, the pledged property stays in the Custody Bot’s depository, and the pawn shop receives GOLD which it can use for refinancing.

Individuals will be able to participate in peer-to-peer crediting and receive passive income from GOLD, while pawn shops will be able to realize their borrowers’ GOLD assets whenever they wish.

GOLD will provide liquidity for the significant gold owning population, and will reduce loan rates by attracting private investors and direct investments in gold.

Transactions Confirmed On Blockchain

GOLD transactions are confirmed on GoldMint’s private blockchain. A utility token, MNTP, confirms transactions on the blockchain. To launch one master node on this blockchain, a minter must own at least 10,000 MNTP tokens. Minters receive 75% from commissions in GOLD and are granted special terms for operations in GOLD.

The GoldMint blockchain uses a consensus algorithm to mine GOLD. GoldMint has published a report in which it describes the way the algorithm operates.

GoldMint will make it easier for people to use gold-backed investments as credible collateral, make it possible to trade gold more easily, and allow investors to gain higher returns from their gold as gold prices rise.



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