Vaultoro plans to use Factom’s data layer for the blockchain for its audit transparency strategy so it can eliminate the third party risk and centralization problems that plague the gold and Bitcoin exchange industry.
The Factom technology uses the same cryptography behind Bitcoin to mathematically prove the existence of any data it receives. Factom hashes that data and embeds anchors into the Bitcoin blockchain. Thus, it creates a provably time-stamped record keeping system capable of maintaining a near real-time, immutable audit trail of Vaultoro’s asset inventory reports, published by its custodian partners.
Joshua Scigala, CEO and Co-founder of Vaultoro commented:
We already strive to create the most transparent system in the gold exchange market. Factom gives us tools to set a new industry standard for any exchange.
Peter Kirby, President of Factom, said:
Vaultoro has already created powerful tools for transparency and accountability beyond the scope of all other Bitcoin or gold exchange platforms. By using Factom, they also get to use powerful blockchain technology for their customers to validate and verify everything they do – in a trustless, decentralized environment.
Vaultoro is a Bitcoin gold exchange that allows its users to quickly convert their Bitcoins to gold and back alleviating volatility risk for Bitcoin users. Vaultoro’s “bank independent trading” allows users to trade gold in amounts as small as 0.001 gram. According to Vaultoro, users’ assets are insured and stored safely in top-tier vaults located in Switzerland. The bitcoin-gold exchange provides users the ability to verify their gold holdings via proof of reserves and proof of audit using third party providers.
Video of Vaultoro – Factom partnership