BitXLanka.Com- Sri Lanka Bitcoin & Crypto Currency Tracker logo BitXLanka.Com- Sri Lanka Bitcoin & Crypto Currency Tracker logo
Cryptoknowmics 2022-06-20 18:30:43

Gold Tokenized NFTs: How Do They Differ from Gold Backed Stablecoins?

The idea of tokenization refers to attaching the value of an asset in the physical world to a Non-fungible Token (NFT) within a digital ecosystem. Gold tokenized NFTs and stablecoins carry the corresponding value in underlying gold assets stored in a vault in the real world. However, there are fundamental differences between the two classes of crypto assets. The following are notable disparities: The Creation of Gold Tokenized NFTs and Stablecoins The main difference between the two crypto entities is how they become part of the blockchain. NFTs depend on the creative process of a creator who designs unique features of a project that includes either art, audio-visual content, or popular text. The owner mints NFT by converting the new project into digital form to make it equally valuable on an NFT marketplace such as OPenSea. The asset then changes hands from one owner’s wallet to another depending on how tradable it proves to be on the blockchain. Stablecoins acquisition occurs through purchase over centralized or decentralized exchange (DEX) systems that support different coins. Gold-backed stablecoins such as Tether Gold (AUXT) have a hedge against unpredictable price shifts of normal cryptocurrencies. The hedge comes from the coins being gold derivatives whose blockchain market behavior simulates the physical asset’s price movements. Liquidity Between Gold Backed Stablecoins and NFTs The gold tokenized NFTs have a high liqu...

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.