Gold and Silver
Kinesis figured out how to use the distributed ledger (or blockchain) to track ownership of vaulted gold and silver, and in the process turned gold and silver into money again. If you believe in Sound Money or Constitutional Money, Kinesis is the 21st Century implementation that can be used in the real world.
Gold and Silver Tokens
There are lots of tokens trading that represent gold and silver, but Kinesis is different from all of its competition:
- The gold and silver in Kinesis’ vaults is audited by Bureau Veritas, one of the oldest (established in 1828) and arguably the premier precious metals auditing firm. The audits assure us that all of the gold and silver is both present and authentic, and it verifies that at the time of the audit the gold and silver on the blockchain was actually backed by vaulted metal. With Kinesis you know the gold and silver are there.
- Kinesis gold and silver (from here on I’ll call this KAU and KAG) are deliverable. If you want to take possession of your metal, you can have it delivered in quantities of 100g gold bars or a pair of 100 troy ounce silver bars.
- Owning KAU and KAG means you own legal title to the gold in the vault. Kinesis doesn’t own it, you do. This is unlike banks where the balance in your account is a liability of the bank to you, rather than your money.
- KAU and KAG can be traded, or spent, in seconds (2-3 seconds on average,) anywhere in the world. All you need is an Internet connection and phone or computer.
- In Kinesis there are no vaulting fees; instead, you receive yields on your metal. This may be the most distinctive feature of Kinesis.
How Kinesis produces yields is in its own section, as it’s unique and can take a bit to wrap your head around it.
The Kinesis Blockchain
For the reasons listed above, KAU and KAG are tied to the Kinesis blockchain, which was forked from Stellar.
If you want to own KAU and KAG and receive yields, you will need to have a kinesis.money account, and you will need to go through the Know Your Customer process to qualify for yields. Kinesis is built to be a gold and silver based monetary system rather than a simple token (meaning, a nation can sign up with Kinesis and have digital gold and silver used by its citizens for every-day commerce), but Kinesis complies with all government regulations and KYC is non-optional if you want to participate in the full system. You’ll need to prove you’re not a terrorist or money launderer in order to participate.
Now, you can store your KAU and KAG on third party wallets if you like – the CollWallet Pro is the easiest way to do this – but if you don’t link that with your official Kinesis account (called the KMS from here forward – the Kinesis Monetary System) then you will not receive yields. And yields are always paid into your KMS account – not your third party wallet account.