Understanding afrocoin (AFR)
Learn afrocoin vision and fractional ownership of precious metal coins
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In this lesson, you'll discover how Afrocoin empowers anyone to own a share of physical precious metals using blockchain, tokenization, and smart contracts. You'll learn why this innovation matters, how the system works, and how you can participate in a new era of inclusive, asset-backed investment.
Our Why
Imagine a world where investing in gold or silver is no longer limited to the wealthy. That’s the world we're building. The rise of blockchain isn't just about crypto—it's about rethinking access and ownership.
At Afrocoin, we harness this decentralized revolution to give everyday people a stake in real assets. Through fractional ownership and smart contracts, we’re enabling new levels of transparency and trust.
Our goal is not just to put bullion on the blockchain — we’re making it possible for everyday people to participate in the bullion market, expanding their wealth while growing the market itself.
What is Afrocoin (AFR)?
Afrocoin (AFR) is a digital token that represents a 1% ownership share in real, physical bullion — like gold or silver coins. Each token is directly tied to a tangible asset and governed by transparent smart contracts.
So if you own 10 AFR tokens of Krugerrand 1oz gold coin, you own 10% of that coin — verified, recorded, and secure on the blockchain.
Tokenization and Blockchain
Now that you understand the mission, let’s explore the mechanism. Afrocoin transforms physical bullion into digital assets through a method called the Bancor process. Bancor process ensures that each token is backed by real, verifiable metal.
Using AI and high-resolution imaging, a registered coin dealer documents and verifies each item. These records are then submitted to a secure blockchain verification network — composed of other verified dealers — powered by Hyperledger. Once authenticity is confirmed, tokens are minted through smart contracts.
Through third-party auditing services, physical coins are regularly inspected to ensure full compliance — guaranteeing a transparent process backed by real-world validation. For a deeper dive into the technical details, explore our white paper.
How Afrocoins Are Minted
What is Minting?
Minting is the process of generating new Afrocoin tokens that are backed by verified physical metals. This ensures that every token added to the supply is supported by real, tangible value.
How It Works:
- Physical Verification: Registered dealers submit physical coins and bars for inspection.
- Digital Processing: The items are scanned and recorded using high-resolution imaging.
- Token Creation: Smart contracts mint Afrocoins that represent the verified bullion.
Bancor Process Flow
We ensure asset security and integrity through a multi-step framework:
- 3D imaging and document verification
- Unique hash generation via digital processing
- Blockchain-based verification network
- RFID tagging with tamper-evident tech
Regular third-party audits and multi-signature verification are integral parts of the process, ensuring a transparent and trustless ecosystem.
How to Buy Afrocoin
Afrocoin tokens are ERC1155 tokens created through our secure Bancor process. You can easily purchase these tokens using our decentralized liquidity pools, which enable community-driven pricing and fair market access.
Purchase Process
- 1Create Account
Sign up or sign in to your existing account
- 2Select Token
Choose your desired Afrocoin token
- 3Payment Method
- • ERC20 Tokens: Use supported tokens from your wallet
- • ZAR: Purchase through our payment gateway (converts to USDC)
- • AFR: Trade using your existing Afrocoin tokens
- 4Complete Purchase
Enter amount, review quote, and confirm transaction
Want to understand how pricing work? Check out next lesson Understanding Afrocoin Pricing.
Key Benefits
Fractional Ownership
Own a portion of precious metal coins
Blockchain Verification
Secure and verifiable ownership
Easy Transfer
Simple ownership transfer process
Transparent Tracking
Clear view of underlying assets
Lower Entry Barrier
More accessible precious metal investment
Smart Contracts
Automated and secure transactions
What We’ve Learned
In this lesson, we explored how Afrocoin is using blockchain and smart contracts to make real asset ownership more accessible. We looked at how AFR tokens represent verified shares of physical bullion and how they're securely minted through a transparent process.
With this foundation, we're ready to move on and see how Afrocoin pricing works — and how we can confidently take part in this new financial ecosystem.
Knowledge Check
Question 1 of 5
What percentage of ownership does one Afrocoin (AFR) token represent in a physical bullion asset?