Digix was one of the first companies to properly digitise the ownership of gold, and put it onto the blockchain. The protocol that they built, Proof of Provenance(PoP), allowed them to successfully record the full supply chain of their gold, from the point of purchase, to storing and minting the tokens.
This obviously raised questions, like what is the point of this? Firstly, this makes owning gold completely easy and cheap (here), and even increase trust to the party that is holding our gold (here), for those of you are skeptic of the banks.
'Our vision is to create an ecosystem for developers to utilize DGX tokens as a framework for various DApp developments.' From Digix Whitepaper
As you could possibly imagine, DGX tokens could be used for virtually anything. As taken from their whitepaper, DGX could be used for:
In legal jurisdictions, DGX tokens can be used like bitcoin to facilitate in game currency or as gaming tokens. The PoP protocol can also be used for the issuance of digital gaming assets.
DGX tokens can provide a better and less volatile store of value for Escrow services on the blockchain.
A Dapp can provide crowdfunding opportunities with crypto-currencies and crypto-assets, or offer convertibility of cryptocurrencies to DGX tokens as a hedge to price volatility.
When exchanges integrate DGX tokens as a cryptocurrency pair, they will be able to offer a gold hedge to cryptocurrencies as part of their service offering. Wealth management services that adjusts your cryptocurrency / crypto asset holdings can be developed to manage an individual’s crypto financial risk profile.
Dapps can utilize DGX Gold for peer to peer lending. A borrower can call for funding through a lending DApp based on his risk profile and reputation and negotiate a rate of return on the borrowed funds. Interest payments can be serviced at regular intervals with a penalty system in place for late payments. This has already been done with bitcoin , but due to the price volatility of cryptocurrencies, lenders may lose more of their asset value than what can be earned from the interest during the period of the loan.
Privately held assets can be safely and efficiently used as collateral without going through lengthy verification process to ascertain an asset’s existence and authenticity.
Furthermore, their PoP protocol, could be used to digitise and tokenise more assets and other types of commodities. This makes the possibilities and the adoption of DGX and their tech almost limitless.
Digix is currently on a mission to expand their ecosystem, and finding more use cases, to apply their DGX tokens and PoP protocol on. But of course it is difficult to do it alone. Which is why we are holding an ideahthon event, to find out what could be the best new idea, that would utilise DGX tokens and or the PoP protocol.
That being said, more information on the event will be revealed soon!