Introduction
The blockchain industry is beginning to diversify its technology into different sectors and this integration is creating the formation of an innovative method of performing certain transactions and processes. An emerging application of this amazing technology is in the gold industry; incorporating the use of cryptocurrency as a digital substitute for the physical material. This is what the Melecoin project is about, to create value using digital assets. Melecoin is a recent project in the blockchain industry and is the founder and creator of this token. The development team built and designed the project and deployed the smart contract on the Ethereum network.
It is from this foundation that the Melecoin token is conceived. The platform uses the Ethereum framework to form the basis of developing a digital asset to represent the physical asset. More so, with the introduction of the I.T infrastructure of Melecoin, the possibility of adoption of the physical gold material into a token is achieved, and this allows the creation of a public smart contract on the decentralized Ethereum blockchain.
Framework of Melecoin
With the current multiple numbers of cryptocurrencies in the market, new and emerging projects must introduce distinctive features peculiar to the digital asset of their project. This is the structure of the Melecoin token. As a crypto coin with a direct link to a physical asset, it is important to establish a connection between the tokens and the gold bar. This will help to indicate the transparency and reliability of the Melecoin network, and present the platform as one that upholds the privacy and confidentiality of clients.
The founders and owners of the novel project entered a confidential agreement that allows them to use a proprietary software technology that provides a unique identification number. The design of this ID number is in the form of a QR code and it is scanned and recorded into the Bitcoin and Ethereum blockchains. The particular Melecoin token backed by either blockchain is also scanned and it is then connected to the serial number found on each of the gold bullion bars. This is how the Melecoin network creates a robust link between the digital asset and the precious material.
Creating a means of integrating the Melecoin token in decentralized exchange platforms and other forms of smart contracts is necessary to establish mass adoption. This is where the use of Melecoin Ethereum smart contract becomes useful. As an ERC-20 compatible token, the Melecoin token is securely incorporated in exchanges and can perform cross-chain interactions. An implication of this is that customers of this network can transfer their assets to a verified Ethereum address by utilizing the transfer feature on the smart contract, as well as endorsing the transaction with the matching private key.
The Gold Industry
It is prevalent and outrightly obvious to everyone the beauty and appealing feature of gold. We can also agree that it is a commodity, which has remained stable over a long period. Unlike other physical assets easily affected by market forces, Gold has consistently retained its value and purchasing power. It is invulnerable to price fluctuations, inflations, political disturbances, restrictions, and associated risks. In certain climes, some people consider Gold as a haven for investors and a financial last resort to store value.
The demand for gold remains firm and stable over the past few years. In 2016, the record of Gold purchases by private entities, investment experts, and sovereign governments was about 170 billion USD. The basic worth of this precious stone comes from its inherent value and this places it as a unique asset across the world. Unlike other financial tenders such as paper money, which loses value and fluctuates often, there is a low to no tendency of Gold losing its value.
With such retentive value of Gold, most governments and central banks back their domestic fiat currencies and assets in the valuable asset. This helps to establish control and stability over several uncertainties in the economy or political sphere that could affect the local currencies. For governments, it helps provide a viable substitute for international payments against currencies of other nations.
Gold is remarkably a treasured commodity in the world and integrating the use of blockchain technology and cryptocurrency to utilize the asset is magnificent. Melecoin project seeks to use its network to establish a connection between gold and its token. The team recognizes various challenges present in the utility of gold and intends to offer a solution to it.
Challenges of the Gold Industry
Despite the recurring and glaring benefits of this physical and valuable asset, we can identify certain challenges experienced in the use of gold in the market and how it is used to perform transactions.
Excess weight: Gold is an asset with massive weight. For users who own and store physical gold, it is often a burden and an inconvenience to carry it about, coupled with the associated risk.
Physical Transaction: Every seller of gold must meet the buyer in person before any purchase is done. Cross border transactions may not be feasible when dealing with gold.
Untraceable transactions: The payment for services or making purchases with gold bars or coins can seem unusual. More so, it may not be traceable in the advent of counterfeit or fraud. Some gold investors and traders have experienced huge losses due to their dealings with fraudsters.
Benefits of using the Melecoin Token
There are advantages associated with the use of this digital asset as a tender for gold coins and ingots.
No cumbersome weight: Gold is converted to the Melecoin token, which is securely stored in a digital wallet and does not add any weight to customers. It creates more convenience for clients.
Peer-to-Peer Trading: Users can perform their transactions on exchange platforms where they can meet potential sellers or buyers of gold and trade. Cross-border transactions are also possible using the Melecoin token.
Advanced Security: The decentralized system of blockchain network protects traders and investors from potential fraudsters. The authentication of transactions and proof of existence is provided using this technology.
USEFUL LINKS
Website: https://melecoin.net/
Whitepaper: https://melecoin.net/images/wp/EN.pdf
Telegram: https://t.me/Melecoincommunity
Facebook: https://www.facebook.com/MELECurrency
Twitter: https://twitter.com/melecoin
Medium: https://medium.com/@melecoin.net
LinkedIn: https://www.linkedin.com/company/melecoin
Instagram: https://www.instagram.com/melecoin/
AUTHOR'S DETAILS
Bitcointalk Username: Esty2281
Bitcointalk Profile Link: https://bitcointalk.org/index.php?action=profile;u=2737693
Proof of Authentication: https://bitcointalk.org/index.php?topic=5293754.msg55703274#msg55703274