Digix, the platform that makes gold bars easily divisible and transferable using blockchain technology, has expanded its presence in the Korean market with the listing of its token, DGX, on ProBit, a leading exchange and marketplace for digital assets. The announcement follows Digix’s recent partnership with Korea-based Blucon, a global payments platform of digital assets, which will allow individuals based in Korea to use DGX to transact on everyday purchases like food, coffee, entertainment, and transport.
The following is an interview with Kai.C chng, CEO and Co-Founder of Digix.
Can you tell me a little more about the story behind Digix and why you came to establish it?
In my time as an Asia Non-Deliverable Forward (NDF) Dealer and Market Maker on Wall Street, I was managing a portfolio of various currencies. I noticed that the value of gold was examined highly during market and economic uncertainty, and began to take interest in cryptocurrencies because of its indirect impact on my job. Due to the volatile nature of cryptocurrencies, I realized that there was an opportunity to introduce an uncorrelated, yet demonstrated proven store of value and medium of exchange into the space, such that anyone could have access to hard, tangible assets. The idea of Digix first started out as a hedge against the volatility of bitcoin and ether, but over time it became apparent to us that giving everyone an opportunity to own gold in itself served a greater purpose of securing every individual’s wealth amidst global uncertainties.
What are the major features of Digix?
Digix gold tokens are fully auditable and transparent by employing the decentralized database InterPlanetary File System (IPFS) and Ethereum blockchain to create a full supply chain protocol. To guarantee the indefinite tamper-proof nature of tokens, we upload our supply chain documents onto the IPFS and place the hash of the documents into an Ethereum smart contract. Until this process is completed, no gold tokens can be issued. Audited documents are also uploaded quarterly to maximise the transparency of all gold-backed DGX tokens. Additionally, our whole supply chain process can be publicly viewed with nothing hidden from users. With just an internet connection, you can verify the provenance of all our gold held in custody. This system we have created is something we are extremely proud of here at Digix.
What problems does Digix strive to solve?
Digix aims to provide a safe and secure store of value to individuals in the form of DGX tokens. While fiat money has lost its value consistently over the years due to inflation and overprinting, gold has demonstrated its ability to hold on to its value for well over 100 years. Our goal is to make gold spendable once again, and with blockchain technology, we are confident that we can restore gold as a great medium of exchange.
What makes Digix stand out from its competitors?
Digix's fully transparent and auditable supply chain protocol is something no other competitor has managed to emulate at this moment. We are also one of the earliest projects and ecosystem builders on Ethereum, starting out in December 2014, having seen the industry grow significantly since then. We have an extremely strong team who work around the clock to assist in achieving our overall objectives. An interesting fact about our team is that our CTO, Anthony Eufemio was the first individual to send a live transaction on Ethereum when they first raised the gas limit, further showing how involved our team has been in the ecosystem over the past number of years.
Was Korea always a target for Digix? Why?
Korea has always been a prime target of Digix because of its citizens' receptiveness to cryptocurrencies and blockchain. Known for having a lively crypto community, Korea is a booming tech hub and aligns closely with our vision for the mainstream adoption and use of crypto as payment. Koreans are technologically savvy and forward-thinking, hence we hope to share what we have created in-depth within the community.
Can you tell me more about how Digix has recently announced the extension of its gold redemption services to Canada, in addition to its two existing vaults in Singapore?
Certainly Expanding our gold redemption services to Canada allows us to reach a wider consumer base outside Asia, and will facilitate easier redemptions for countries in the west. In time to come, we are hoping to add more locations for our storage and redemption service, making it more efficient for anyone to redeem tokens for physical gold bullion.