Why is the new generation of Stablecoins based primarily on Ethereum?

in #blog4 years ago


TrueUSD (TUSD), Circle Coin (USDC), Gemini Dollar (GUSD) and Paxos (PAX), are new generation Stablecoins that compete against Tether (USDT), which are based on the Ethereum Blockchain network.

Crucially, the three bases mentioned above are fully audited, transparent and regulated, allowing them to obtain stable banking services and guarantee the ability of consumers to exchange Tokens based on a 1: 1 ratio to the US dollar. .

The implementation of a Stablecoin over the Ethereum Blockchain protocol instantly improves the compatibility of the asset with the existing infrastructure. For example, users of GUSD, PAX and TUSD can use hardware portfolios such as Trezor and Ledger, along with software portfolios such as Metamask to send and receive coins.

"Improvement of sending and receiving. Two Ethereum portfolios can quickly send and receive any amount of USDC at any time of the day. Large transfers for commercial purposes become as easy as small e-commerce payments. Consumers can use the Coinbase application to send USDC to someone, while being assured that the value is stable, "explained the Coinbase team, which recently integrated the USDC with Circle.

It also allows exchanges to easily integrate the Stablecoins without the need to create a new infrastructure to support them.

The Coinbase team emphasized that the use of the Ethereum Blockchain network enables developers to program the dollar, which allows Fintech companies to develop programs that can easily and securely provide Stablecoins transactions.

"A programmable dollar. For developers and financial technology companies, it is easier to program with a digital dollar like USDC. For example, given the private keys for USDC, a program can send and receive them easily using the public Blockchain of Ethereum. "

The most important thing is that, with the Stablecoins launched in Ethereum, users can track the circulation of Tokens with block explorers like Etherscan. Because Tokens are stored in smart contracts, users can track the amount of US dollars stored in a particular currency, which increases overall transparency.

Subsequent to its launch, the Gemini team highlighted to a large extent the fact that GUSD is based on the Ethereum network and complies with the Token ERC20 contract standard, thanks to the various benefits that compatibility with Ethereum can provide.

"To date, there has not been a reliable and regulated digital representation of the US dollar that moves in an open and decentralized manner, such as Cryptocurrencies. Speaking of the Gemini dollar: a stable-valued currency (often called "Stablecoin") issued by Gemini, a New York trust company, strictly linked 1: 1 to the US dollar, and built on the Ethereum network according to the ERC20 standard for Tokens

Cryptocurrencies are in a growth curve

In the coming years, as the infrastructure surrounding the cryptocurrency market strengthens, platforms, assets, and opaque, inefficient, and unregulated projects will be replaced with practical, transparent, and regulated alternatives, and growth will continue to be seen. exponential with the passing of the years.

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