Overview
Comtech Gold offers digital units of gold, fully backed by physical gold in standardized 1 kg bars with 999.9 purity, sourced from internationally recognized refineries. Each digital unit corresponds to 1 gram of gold, priced according to the current international gold rate. These digital units are highly liquid and fungible, allowing investors to purchase as little as 0.50 grams. Comtech Gold eliminates storage costs and the risks associated with theft and transportation by not charging custodian fees. Investors have the option to convert their digital units into physical 1 kg gold bars upon request.
A key feature of Comtech Gold is its compliance with Shariah law, ensuring each digital gold unit is fully backed by identifiable and segregated physical gold. Every purchase and sale results in the actual delivery of gold from the seller to the buyer, adhering to Shariah principles. Physical gold bars are securely stored in internationally accepted vaults in the UAE. Additionally, all trades are settled instantly, with investor accounts promptly debited and credited with funds or digital gold units.
Problem Statement
Comtech Gold (CGO) encountered several significant challenges in ensuring Shariah compliance and maintaining transparency within their digital gold token system:
Absence of Gold Bar Details:
The system lacked detailed information about the gold bars, such as bar numbers and warrant numbers, linked to the digital tokens.
No Association Between Gold Bars and Holders:
There was no record of which gold bars were held by which token holders.
Shariah Audit Issues:
The lack of linkage between gold bars and token holders led to complications during Shariah audits.
Lack of Role-Based Accessibility:
The system did not provide role-based access for entities involved in the minting and escrow processes of gold bars.
No Multi-Signature Approval:
The processes for minting and burning tokens lacked a multi-signature approval mechanism, compromising security and trust.
Our Solution
To address these challenges, Yodaplus developed the CGO Controller Smart Contract to manage the operations of minting, burning, and maintaining a ledger of gold bars for token holders, ensuring Shariah compliance. Key features of the solution include:
Role Configuration
The CGO Controller Smart Contract establishes roles for escrow wallets, minting initiators and executors, and burn/redeem token initiators and executors.
Streamlined Supply Chain
The smart contract streamlines the token supply chain from minting to burning and employs an event-driven approach to track gold bar ownership.
Audit Data Generation
The Dapp generates audit data through an event-driven approach, ensuring transparency and accountability in token transfers.
Multi-Signature Approval
The system uses multi-signature approval for critical tasks, enhancing security and trust by requiring consensus for significant actions.
Streamlined Supply Chain
By maintaining a detailed ledger and ensuring the proper linkage between gold bars and token holders, the system meets Shariah compliance requirements.
Solution Outcomes
The implementation of the CGO Controller Smart Contract by Yodaplus has led to substantial improvements for Comtech Gold:
- 1
Enhanced Transparency:
The system now provides detailed information about each gold bar linked to digital tokens, improving transparency
- 2
Improved Shariah Compliance:
The linkage between gold bars and token holders ensures compliance with Shariah law, facilitating easier audits.
- 3
Secure Role-Based Access:
The establishment of specific roles for minting, burning, and escrow operations ensures that only authorized entities can perform these tasks, enhancing security.
- 4
Increased Trust:
The multi-signature approval process for minting and burning tokens has increased stakeholder trust by requiring consensus for critical actions.
- 5
Operational Efficiency:
Streamlining the token supply chain from minting to burning has improved operational efficiency, reducing the time and effort needed to manage digital gold units.
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