Crypto Gold Token Real-time Transaction Comparision of PAXG Vs. CGO.

The traditional reserve asset gold is one of the oldest methods of payment that gained significant demand as a replacement for unpredictable stocks during the pandemic in 2020 and then again in 2022 amidst the Russia-Ukraine war. Due to its supply constraint, gold has been a popular safe-haven asset, but it is heavy in its physical form and challenging to carry around. Yellow metal has become even more popular as an investment over the past couple of years. Experts believe the gold investment will continue gaining momentum in the face of rising global uncertainties. Gold-backed cryptocurrencies are the new ways of saving gold.

Gold-backed cryptocurrencies allow investors to acquire, sell, and keep gold without the typical inconveniences. Cryptocurrency users who want to expand their holdings into physical gold may find these tokens more efficient and convenient gold-investing methods.

This article will compare the two leading Crypto Gold Tokens: PAXG on Ethereum vs. CGO on the XDC Network.

PAX Gold (PAXG)

PAX Gold (PAXG) represents One troy oz. of a 400 oz. London Good Delivery Bar is held in a London vault. The smallest divisible amount of PAXG is 0.01 tokens or 0.01 troy oz.

Paxos Gold runs on the Ethereum blockchain, and its transactions operate according to the smart contract rules set forth by that network. The company charges a small fee for creating and destroying PAXG tokens (around 0.02%). There are also on-chain fees users pay for moving the tokens on Ethereum apart from the transaction fee.

ComTech Gold (CGO)

ComTech Gold Token “CGO” represents 1 gram of pure gold for every token, and it will be priced at the prevailing rate for gold on international markets. Each gold purchase and sale will result in the Seller physically delivering Tokens to the Buyer, confirming Shariah’s compliance.

This gold is backed by real gold that can quickly be identified and separated. Physical gold bars are stored in the UAE in internationally accepted vaults, and users can tokenize their 1Kg gold bar to a CGO token and vice versa. ComTech Gold also provides an unrivaled level of reserve transparency so that the community can always be confident that their digital assets are fully backed by Physical GOLD.

ComTech Gold is tokenized on the XinFin (XDC Network) Hybrid blockchain, With interoperable smart contracts, near-zero fees, and high security. As Comtech Gold is a new player, it is launched in Bitrue exchange with good liquidity and many exchanges to join in the future.

What are the fees for on-chain transactions?

Each PAXG token is backed by one fine troy ounce (t oz) of a 400 oz: A troy ounce is a unit of measure used for weighing precious metals that dates back to the Middle Ages. According to the U.K. Royal Mint, originally used in Troyes, France, one troy ounce equals 31.1034768 grams.

So if the user wants a 1 gram PAXG, then the calculation would be:

One fine troy ounce PAXG = 31.1 grams of PAXG

So 1 gram of PAXG ranges to around 0.033 PAXG (as per the price on 27th May 2022)

Whenever you buy or sell PAXG from your Paxos account (on either the wallet or PAX Gold pages), Paxos charges small fees to process the creation and destruction of PAXG tokens. Whenever PAXG tokens are sent via Ethereum, Paxos charges a small (0.02%) transaction fee, and the Ethereum network charges nominal gas fees (in Ethereum).

So for 1 gram of PAXG, we need to buy around 0.033 PAXG, and including fees, it would be 0.03366

Now coming to the ComTech Gold, Sending a CGO token from one address to another is an on-chain transaction, and the token is transferred and recorded on the XDC blockchain.

Sending CGO on XDC, on the other hand, requires computing power, or ‘gas.’ To compute the transaction, CGO, like any other XRC-20 token, requires regular gas fees paid in XDC, and CGO charges a fixed fee of 0.02 % of CGO transferred on the blockchain.

For example, if you want to send 1 CGO (One CGO represents one pure gram of gold) from one XRC20 address to another, you should send at least 1.0002 CGO total to cover the cost of the on-chain transaction fee.

Realtime total transaction cost — comparison between PAXG Vs. CGO:

In the case of Tokenized gold, one of the most important parts is the total transaction cost. So let’s compare the transaction cost for PAXG and CGO with the real-time transactions.

First, we will check the Ethereum network-based gas fees & transaction fees; It costs roughly 0.000000043 Ether($0.0000747125) as a gas fee and 0.003478528 Ether ($6.04) as a transaction fee to send 1 gram worth of PAXG from one account to another.

Basically, to send the 1 gram worth of PAXG from one account to another, you need to spend around $6.040075

https://etherscan.io/tx/0x813d9255cf16f17e2e30e25ad89340799922ed0db0b4bea07ac449f92906da35

Now let’s look at the XDC Network gas fees & transaction costs. It costs only 0.00000000025 XDC($0.00000000000969075) as a gas fee and 0.000013718 XDC ($0.00000053087) as a transaction fee to move 1 CGO(One CGO represents one pure gram of gold) from one account to another, which is much less than PAXG.

The total transaction fee for sending 1 gram of CGO to another account is around $0.00000053

https://explorer.xinfin.network/txs/0xe026e5d877fb9ff335a8633f4bf9db50a299e0b537eb859b3b4561172bbb7b34

As per the total transaction cost, the PAXG is not suitable for regular usage; instead, it can be used only as saving to avoid the extra spending on the total transaction fee. Whereas CGO charges nominal transaction fees, making it suitable for the usage as a stable coin, CGO can also be used to serve salaries to the employees, and similar other daily needs use cases. Both the token PAXG and CGO are listed with crypto exchange Bitrue.

Meanwhile, crypto gold investors should examine the advantages and disadvantages of each of these tokens to determine which is best for their own needs.

Don’t forget to put your opinion on this after doing your research.

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Blockchain Enthusiast - https://twitter.com/CryptoQueenVinn

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