What is Comtech Gold (CGO) and how does it work?
What is Comtech Gold (CGO) and how does it work
Mining digital gold has the potential to disrupt the industry to an unprecedented degree. Historically gold has been used as a global currency as a hedge against inflation. It also serves as a preferred investment area (commodities) over other asset classes such as stocks or foreign exchange, especially in traditional markets.
However, there are some disadvantages to owning physical gold, such as inconvenience in transportation and storage and the risk of theft. Gold exchange-traded funds (ETFs) may emerge as an alternative option, but it cannot be forgotten that while paying the same taxes as gold bullion, traders do not actually own the gold, or gold bars, and also investors must pay an annual fee of between 0.4% and 1% . Gold includes all forms of metal, such as coins and bars, while bullion includes all fungible physical forms of other precious metals, such as silver and platinum.
On the contrary, digitized gold stored on the blockchain emerges as a solid option. Comtech Gold (CGO) combines the benefits of gold with the advantages of blockchain. CGO solves the prevailing problems in gold trading by offering a 100% gold-backed cryptocurrency.
Introduction to Comtech Gold,
Comtech Gold has added another dimension to gold trading by issuing standard digital gold backed by 100% physical gold. Built on the XinFin XDC Network, an advanced blockchain, the project is also Sharia compliant and has been certified by one of the renowned group of Sharia scholars in the United Arab Emirates.
Digital gold can always be converted into physical gold, solving the storage and transfer-related problems associated with gold. Fractionalization of the precious metal makes gold investment more common.
CGO token holders physically own the same amount of gold. While each owner is entitled to a certain amount of gold, there may not be specific bars they offer. The arrangement works like a bank where the bank delivers bills of a certain value as requested by the withdrawing person, but the bills they deposit in cash are not necessarily the same.
Basic physical gold,
Each coin in Comtech Gold represents 1 gram of gold at prices dependent on the prevailing international gold rate. The coins are fully backed by gold bars that can be identified by their bar numbers. These are standard 1kg bars with 999.9 purity.
Anyone holding gold backed coins can convert their coins into physical 1kg gold bars. Once an investor has gold coins equivalent to 1 kg (1000 CGO coins), they can submit a request to have their coins offered for physical 1 kg gold bars.
As the Comtech Gold network grows, you can purchase smaller denominations of tokens at reputed retailers’ stores and redeem them at your convenience.
Safe and storage,
The physical bars underlying gold tokens are stored with Transguard, a globally accepted vault. The audit trail under users' wallet account is completely complete. Users can use their wallet to view their balance and transfer coins. All wallets are encrypted, providing access only to the owner.
Storing gold has always been a pain due to security and convenience issues, whether at home or in the bank. However, with Comtech Gold, users can store gold in a tokenized form, move around their assets, and even dispose of their investments at will.
Toughening of physical gold
Gold is a precious metal, making investments economically unfeasible for a large group of people. Digitization of gold leads to fractional investing, allowing people to buy as little as 1 gram, significantly broadening the horizons for investors. Comtech Gold makes it easy to purchase at least 0.01 grams.
In Comtech Gold, users can deposit their personal physical gold into a standard 1 kilogram bar and receive coins against it. Any investor who has coins equal to 1 kg or more of gold can cancel their coins in exchange for equivalent gold in multiples of 1000 coins (1 kg of gold).Regulatory oversight, cooperation with gold custodians with a solid track record, and an escrow account put potential concerns aside.
Comtech Gold protocol based on XinFin XDC Network blockchain advantages of decentralized ecosystem. Tokenization makes holding and trading gold assets very simple compared to physical gold. Moreover, unlike fiat currency or physical gold, tokens are much more fluid.
Native CGO tokens stored on the XDC Network blockchain can be managed by the user through wallets that support XDC Network's XRC-20 tokens. Using the XDC Network, users can view their token balance and transfer tokens to a receiving address. Once the process is completed, users can confirm it with their XinFin XDC network explorer. The entire transaction process takes a few seconds with near-zero transaction fees.
When transferring CGO tokens, users are required to pay a standard gas fee along with an additional fee for CGO transfer. For example, if users need to transfer 20 CGO from one XRC-20 address to another, they may need to send 20,003 CGO to cover the fee charged. This helps manage the fee protocol and cash register. There is no custody fee.
Since CGO is tied to actual physical gold, the price will closely follow international gold prices. Market-related ups and downs in offline gold prices will be reflected in the price of the CGO token.
