GoldMint, a forthcoming blockchain powered platform which will operate the gold-backed crypto asset GOLD will be launching their token generation event this week. One of the fascinating aspects of the Ethereum powered precious metal platform is its Custody Bot, which is a physical machine connected to the Ethereum blockchain to store and assess gold valuables.
So how exactly will it work? Let’s take a look.
Foremost, Custody Bot is a device intended to receive, appraise, store and deliver physical gold. It is additionally suitable to receive evaluate and appraise gold jewelry, coins or gold in an automated mode.
This device is necessary to verify the gold assets of small banks, non-credit financial institutions, and private individuals. It also helps to implement investment scenarios with GOLD digital assets and to implement a credit system secured by gold.
Custody Bot is connected to the public blockchain and sends the appraisal values to it.
GOLDMINT CUSTODY BOT
In 1997 Nick Szabo published a paper called Smart Contracts: Formalizing and Securing Relationships on Public Networks, which many consider the first text to mention “smart contracts” such as though implemented today in the Ethereum protocol.
In his article Szabo gives an example of a vending machine working on a “smart contract” between buyers and the machine’s owner (creditor):
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- (1) A lock to selectively let in the owner and exсlude third parties;
- (2) A back door to let in the creditor;
- (3a) Creditor back door switched on only upon nonpayment for a certain period of time; and
- (3b) The final electronic payment permanently switches off the back door.
FOR THE “SMART” VENDING GOLD STORAGE OF GOLDMINT
The Custody Bot is GoldMint’s partnership project with AIRA to demonstrate the next step in the evolution of “smart contracts.” In GoldMint’s case, a “smart contract” to issue a loan in exchange for storage of gold will be made between a user and the machine itself.
For this AIRA will teach the device to work in the Ethereum network, where the robot can enter into a contractual relationship with a human customer.
THE PROCESS WILL BE AS FOLLOWS:
1. The Custody Bot assesses and checks the gold valuables offered by the user;
2. The user sees the result and the sum being advanced;
3. The Custody Bot sends a transaction to the Ethereum network for a contractual obligation to store the valuables and attaches a log file of the assessment;
4. The user returns the money;
5. The Custody Bot reassesses the valuables and compares the result with the original inspection;
6. The user gets his valuables back, the Custody Bot sends a transaction to the Ethereum network about a discharge of obligations.
The architecture
Safe Cabinets simulate coffee vending machines. Their dimensions are 1.5 meters high, 0.65 meters deep and 0.8 meters wide. On the front is the output tray that looks like the tray for CDs in the CD-ROM. Tray size is 15×20 cm. Next to it is a small touchscreen and a numeric keypad, like an ATM.
Custody Bot contains:
- Gold retrieving mechanism.
- Gold checking mechanism – a spectrometer and scales.
- Individual deposit boxes – no more than 40.
- Linux operating computer.
The front door looks like a safe’s door.
The Airalab Core platform links Custody Bot to the blockchain.
GoldMint runs on a blockchain ledger and works through a digitized crypto asset called GOLD whose cryptocurrency value is based on physical gold. The decentralized platform uses a special blockchain that helps gold owners trade, loan, invest in and, generally, use their commodities for profit.
GoldMint buys, sells and repurchases GOLD at the current market price for physical gold. The company uses exchange-traded funds (ETF) or physical gold (of 999 quality) as its security. GoldMint’s gold reserves equal or exceed its mined amounts of GOLD.
For more information on GoldMint check out their Custody Bot page and official ICO website.