Royal Canadian Mint joins Goldmoney network
Royal Canadian Mint to provide vault, the first government vault in the network
Stated as joining Goldmoney private blockchain
Although the term blockchain is not used in the conventional sense
Source: NFC World
Summary: Royal Canadian Mint joins Goldmoney network providing bullion vault service. Goldmoney are promoting the use of a private blockchain to distribute trust in its network of vaults, although it is not actually using a blockchain in the conventional sense. This is symptomatic of the confusion created around new technology market messaging.
Point of View
Goldmoney is promoting the use of its private blockchain as the mechanism for distributing trust in its network of vaults. The announcement of Royal Canadian Mint’s involvement is the first national vault to become part of the Goldmoney wealth management network of vaults. To date all other vaults are privately owned.
However, the private blockchain Goldmoney is claiming to use is not a blockchain as normally considered by the term. Goldmoney states “The Goldmoney Trust Protocol is a proprietary, closed-loop digital ledger technology that provides a modern real-time settlement system for gold. It’s a digitized chain of integrity; our platform architecture uses the principles of blockchain…”. It appears to be based on a Bitgold patent using time stamps and internal cryptography.
Among other services, Goldmoney enables its customers to invest in precious metals without having to manage the physical bullion themselves. The precious metals are stored in a network of secure vaults.
In an unrelated initiative, UK’s Royal Mint announced in November 2016 that it was working with the CME Group to “provide an easier, cost-effective and cryptographically secure alternative to buying, holding and trading spot gold”.
The use of the term blockchain to represent any cryptographic means of distributing trust in a network of participants is becoming commonplace. This changes the original use of the term to describe the chaining of trust, as first implemented for Bitcoin. Using the term in this way leads to confusion in the market, and care should be taken when interpreting activities of companies advertising their involvement in projects.