Gold Price = $1883.20/oz

1 DGLD = 0.09887741 Troy oz = $186.21 USD

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What Technology Does DGLD Use?

19 Sep 2019

On the technical front, DGLD uses a technology stack architected and developed by our technical partner, CommerceBlock.

DGLD is issued on a permissioned sidechain utilising the open-source Ocean protocol, with a fault-tolerant federation of block producing nodes that are controlled and operated by Gold Token SA in Switzerland. The integrity of the federated block signing protocol is ensured with multiple redundant systems and with cryptographic signing keys generated and secured within dedicated hardware security modules (HSMs). The HSMs used for signing blocks on the DGLD sidechain are FIPS 140-2 Level 3 certified, provided by our partner Securosys, and manufactured exclusively in Switzerland.

To ensure the trustless immutability of the DGLD blockchain and the record of gold ownership, it is linked to the Bitcoin blockchain via CommerceBlock’s Mainstay protocol. The use of the Mainstay protocol ensures that DGLD holders can independently verify and prove their unique ownership of the allocated vaulted gold without relying on any third party: this means that ownership of allocated gold cannot be re-assigned or double-spent by anyone, including by Gold Token SA. To double-spend DGLD, the Bitcoin blockchain would have to be rolled-back and re-written, which is practically impossible due to its global Proof-of-Work consensus mechanism.

Each DGLD token is linked to an allocated gold bar at the protocol level, and the creation of DGLD tokens can only be performed via a strictly controlled multi-signature issuance process involving air-gapped hardware. The complete list of vaulted gold bars is digitally signed by the vault operators (PAMP) and can be publically verified against the mapping to issued DGLD by token holders.

Due to this technical approach, when you own DGLD, your allocated gold can be accessed from your digital wallet at any time, meaning you have the ability to alter your investment on your terms.If you would like to transfer your digital gold to another party that can receive DGLD, you don’t have to wait for third-parties to process your instructions - the power is at your fingertips 24/7, 365 days a year.

We digitized gold to evolve this format and eliminate most of those trade-offs associated with vaulting gold; and we chose to utilize the Bitcoin blockchain so that we could leverage the world’s most powerful network to secure your gold once digitized.

The 'trustless' immutability of the Bitcoin network combined with the highly secure and verifiable processes linking the physical gold to DGLD provides the strongest guarantees of ownership, ensuring only you can transfer, redeem or access your gold.


ABOUT CommerceBlock

CommerceBlock is a unique blockchain development company based in London. The company focuses on building layered solutions on top of the Bitcoin blockchain to provide the tools for a distributed financial infrastructure.

We have developed architecture that enables the distribution, exchange and storage of tokenized assets and data. Our open-source ecosystem is derived from the Bitcoin protocol with additional easy-to-use KYC, whitelist/blacklist and other regulatory functions.

It allows for the ability to run sidechains with custom logic together with a portfolio of optional security services to combine the immutability and security of public blockchains with the flexibility of permissioned blockchains.


Footnotes

  1. https://commerceblock.readthedocs.io/en/latest/ocean/index.html
  2. https://commerceblock.readthedocs.io/en/latest/mainstay/index.html

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