CACHE Gold uses a Public Blockchain
Blockchain is a term that is often misused to make false claims regarding the existence of “trustless systems”. It is important to understand that there are two broad categories of blockchains:
- Public Blockchains, which are exemplified by the Bitcoin and Ethereum blockchains. These blockchains are controlled by distributed nodes that can be run by anybody. The more nodes are in existence, the more reliable and tamper-resistant the blockchain becomes. Public blockchain source code is also public, enabling anyone to audit the code. This combination of characteristics make public blockchains trustless systems that have proven themselves to be extremely reliable over the test of time.
- Private Blockchains, are often Ethereum or Bitcoin copycats that run on a small number of nodes controlled by one or more private entities. The controlling entity(ies) can modify the code to fit their purposes and may not fully reveal those changes or publish their code as open source.
Public blockchains have revolutionized computing and finance by virtue of their trustless nature and deserve confidence because they are not controlled by any centralized entity that can change their functionality. Data stored on a public blockchain is immutable because modification of any data in a given block would invalidate all subsequent blocks and would be immediately detected by the network participants.
Private blockchains, on the other hand, are controlled by a single or small number of entities that validate transactions. Private blockchains are not trustless and are not distributed like public blockchains. Much of the marketing materials published by various private blockchain projects greatly devalue the term “blockchain” and misuse the term “trustless”.
CACHE Gold is an ERC-20 token on the Ethereum public blockchain. CACHE Gold tokens inherit the trustless nature of the Ethereum blockchain and are freely transferrable and fully compatible with all existing Ethereum ERC-20 infrastructure (including exchanges and wallet software).
CACHE Gold tokens are governed by an Ethereum ERC-20 smart contract
The Ethereum blockchain allows for token creation and customization using ERC-20 smart contracts. Smart contract code is public and immutable once published to the Ethereum blockchain.
Similar to Bitcoin, CACHE is fully transparent in its operations and cannot change the rules governing the token after its launch.
The CACHE Gold smart contracts provide the following features:
- An interface with GramChain® via the CACHE Token Governor to ensure CACHE Gold tokens are 100% backed by physical gold.
- A 0.25% (25 basis point) storage fee per year to cover insured storage.
- A 0.1% (10 basis point) transfer fee.
- An inactivity fee of 0.50% (50 basis points) which replaces the storage fee for addresses that are inactive for three years or longer.
The CACHE Gold token supply is kept in sync with the supply of underlying physical gold by the CACHE Token Governor.
A more complete explanation of CACHE Gold fees is available here.
CACHE Gold token is fully compatible with ERC-20 wallets
CACHE Gold Tokens are compatible with all software (such as MetaMask) and hardware wallets (such as Ledger or Trezor) that support the widely popular Ethereum ERC-20 standard.
CACHE Gold Tokens are exclusively controlled their address's corresponding private key
CACHE has no whitelist, backdoors or other ways to restrict, freeze or seize tokens. Just like Bitcoin, CACHE Gold tokens for any given address are controlled exclusively by that address’s corresponding private key.
CACHE Gold token holders are fully and exclusively responsible for managing their private key(s). Because CACHE never knows a user’s private key(s), there is no way for CACHE to recover CACHE Gold tokens if a token holder claims to have lost their private key(s).
What is an Ethereum ERC-20 Smart Contract?
An Ethereum ERC-20 smart contract is a piece of computer code that governs the rules and behavior an of an Ethereum ERC-20 token. This code is immutably embedded in the Ethereum blockchain and can never be changed. Due to the immutable nature of Ethereum smart contracts, CACHE Gold token holders can be assured that no changes can be made to the CACHE Gold token except as specified in the smart contract code. For a more in-depth technical explanation of Ethereum smart contracts see Ethereum’s developer guide.