Frequently Asked Questions

Frequently Asked Questions 2018-03-03T15:58:33+00:00
What is the Blockchain? 2018-03-03T15:36:45+00:00

Blockchain’s purpose is primarily to verify and record cryptocurrency transactions between parties, without the need for central record keeping. It is a digitized, decentralized, public ledger, which grows as transactions occur. New transactions are added as ‘completed’ blocks. This allows participants to keep track of digital currency transactions in a copy of the blockchain, automatically downloaded to the computers linked to the blockchain.

What is Cryptocurrency? 2018-03-03T14:31:19+00:00

A cryptocurrency is a digital or virtual currency used as a medium of exchange. It uses cryptography to secure and verify transactions.

What is a Continuous Token Offering? 2018-03-31T18:29:10+00:00

A Continuous Token Offering is an adaptation of the commonly used Initial Coin Offering concept. Rather than a single token generation event and sale, this continuous version allows for the ongoing issuance and redemption of digital tokens by the issuer for an open-ended term.

What is an Ethereum-based Token, developed to the ERC-20 Standard? 2018-03-03T15:36:54+00:00

Ethereum is one of the best known open blockchain networks, founded in 2014. Ethereum is the most commonly used network upon which smart contracts and secondary tokens are built by a variety of parties to suit any purpose. Typically, Ethereum is used as the launch pad for Initial Coin Offerings.

ERC-20: Is the terminology used for an Ethereum blockchain network-based standardized token protocol. This is the best known, and most commonly used Ethereum token to represent a specified value.

What are the advantages of CannDollar vs. ETFs? 2018-03-03T14:37:03+00:00

An Exchange Traded Fund (ETF), is a public exchange traded security that tracks the price of a given asset, such as commodities, bonds, or thematic portfolios such as indices.

Some silver ETFs do not invest in actual silver bullion, rather they provide an investor exposure to the price fluctuation of silver. The risk to investors is that you do not hold the ETF units in your own name at the clearing house, exposing you to the risk of your holdings being altered.

ETFs are primarily used as an “investment vehicle”, and are not accessible for commerce, or exchange between individuals.

ETFs are traded on stock exchanges which operate 8 hours a day, 5 days a week. Transaction settlements can take several days to process.

CannDollar on the other hand, provides an investment in tangible minted-coins held in the buyer’s name, redeemable by the purchaser at any time, and provides its customers with near instantaneous settlement to their accounts.

CannDollar is designed to be used for commerce and exchange between individuals, and our ecosystem offers clients fully-insured digital wallets.

What are the advantages of CannDollar vs. Physical Silver Bullion? 2018-03-31T18:28:10+00:00

Owning physical silver coins or bars is the preferred form of possessing silver. However, selling or liquidating silver can be a cumbersome, expensive process and cannot be sold as divisible fractions.

Using it as a means of exchange is similarly difficult, as most counterparties will be unlikely to accept it, and it needs to be physically transported in a secure, costly manner.

The CannDollar solution acts as a currency, accessible on a debit or credit card, or online in an account or eWallet. CannDollars can be used for day to day purchases whilst silver bullion holders would find it unlikely to be used in its physical form as a medium of exchange.

What are the advantages of CannDollar vs. Bullion “Banks”? 2018-03-03T14:31:57+00:00

A few financial service firms offer solutions to both possess units of silver or gold and allow spending of these precious metals for day-to-day transactions via a credit card.

However, clients of these firms are restricted to a closed ecosystem, where all parties transacting are required to remain exclusively within their platforms. This “walled-garden” approach means that users do not have access to an external and global range of additional transacting platforms.

CannDollar uses an open platform that is connected to multiple exchanges allowing for greater liquidity, larger markets and an unlimited number of users.

Bullion banks have the potential to offer their clients a product like the CannDollar solution. In some cases, certain bullion banks will accept CannDollar as a currency to purchase their own suite of products.

What are the advantages of CannDollar vs. Other Cryptographic Tokens? 2018-03-03T14:32:02+00:00

Several products on the market offer similar features to CannDollar.

Typically, however, these other tokenized precious metals providers do not meet the same international standards for transparency, trust, and continuity as CannDollar. There is an acute lack of information regarding the auditability of their reserves, or their physical custodian relationships. Furthermore, substantial public information regarding management and legal jurisdictions of these firms are also frequently missing or ambiguous.

A currency should be based on trust, and without solid belief in the actual existence of claimed metal backing or non-transparent accountability for the issuer of the coins, most of these solutions will not be able to match CannDollar as the global standard for tokenized metal currencies.