Stablecoins: An Overview of Tokens that defy the Waves of the Markets / Bitcoin Cash: Happy Fork Day! 32MB

in cryptocurrency •  3 months ago

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As the crypto prices fall and sometimes increase, it is convenient to park values in stable tokens. Stablecoins, which have been on the market for some time now, offer traders an ever-increasing choice. I introduce some of them.

With Gold Cover

CryptoGoldCoin:

The newest Stablecoin is the CryptoGoldCoin. It is published by CryptoGold, a provider of mining contracts based in Dubai, but operated by Germans. Among the cloud miners, CryptoGold is considered to be relatively reputable and reliable.

CryptoGold has now published the CryptoGoldCoin (CGC) in cooperation with the Cologne gold dealer "Deutsches Edelmetallhaus". Each unit of this coin is represented by 0.02 grams of gold. The gold is stored in the vaults of the German precious metal house and insured by the insurance company Allianz. From 100 grams, the gold will be sent on request by mail.

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The CGC is an ERC20 token on Ethereum. To make it easier for users to use it, CryptoGold has developed a special wallet for it, which unfortunately only exists for Windows and OSX. This wallet is the basic requirement to use the CGC. When you transfer the tokens, a small fee is payable in CGC that is not paid to miner or anyone, but destroyed. Thus, according to the white paper, the number of CGC should decrease over time, while the amount of stored gold remains stable. So should the weight of gold, which represents a CGC, increase in the long term.

So far, 334,000 CGC have been created, which corresponds to about 7 kilograms of gold.

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Digix DAO:

The Digix DAO promises to reach a gold-covered Stablecoin decentralized. DAO stands for "decentralized autonomous organization" and means that there is no central basis in the provision of a service - as with the CryptoGoldCoins of the German precious metal house - but only a decentralized organization managed by smart contracts.

However, the gold tokens themselves are not fundamentally different from other centralized gold tokens because they represent a certain amount of gold (1 gram) deposited by a company in a safe. The DAO, which is run by the owners of the Digix Dao Token (DGD), does not appear to be responsible for depositing the gold, but merely examines the onchain activity of Digix and actively participates in advancing the project. So whether the Digix DAO actually upgrades the concept of gold tokens, is likely to be questionable. But it manages, after all, to create a stable value in the stormy crypto markets.

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With Dollar Cover

Tether:

We already know Tether: US dollars, which are supposed to be in the accounts of unnamed banks, and will be transferred to Bitcoin or Ethereum in token. Despite many doubts about publishers associated with the Bitfinex exchange, the Tether dollars hold their market value of $ 1 and are so heavily in demand on the exchanges that they are now one of the most widely traded cryptocurrencies. But it seems like Tether is getting competition from two projects.

True USD:

Recently Binance and Bittrex are trading not just USDT but also a TUSD. This abbreviation stands for the "True US Dollar", which was created by the company Trusttoken.com. In itself, the TUSD works the same as the USDT, except that not one company, but a consortium of companies deposit the money in different bank accounts to issue the True Dollars as ERC20 tokens.

The companies of the consortium will use several trust accounts, and regular audits will confirm that the dollars actually exist. The users who use the TUSD should prove their identity by KYC procedure.

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The TUSD should actually be traded on May 18th on Binance. This was postponed to May 21st. For several days now the TUSD is tradable on Bittrex and Binance. The volume seems to be low at the moment.

Circle US-Dollar Coin

The crypto wallet Circle recently announced that it is issuing a USD Coin (USDC) in partnership with major miner Bitmain. Again, the dollar tokens correspond to the dollar deposits in a bank account. The USDC seeks to provide an open regulatory framework that can be accommodated by any financial institution to issue such a USDC through ERC20 tokens.

DAI Stablecoin

The most interesting thing I've picked up for today is a decentralized version of the centralized dollar trustee - the DAI Stablecoin on Ethereum. DAI is a kind of DAO, a decentralized autonomous organization in which the owners of special tokens (maker tokens) are responsible for ensuring that the DAI tokens are in parity with the dollar. That's why the organization is called Maker-DAO. It should be one of the first truly functioning DAOs.

"Dai," writes Airfox CEO James Seibel, "is a masterpiece of game theory that carefully balances the economic incentives to achieve a goal": to create a $ 1 token. The white paper explains how it works: A dynamic system of collateral debt positions, automatic feedback mechanisms, and incentives stabilize the DAI tokens. To establish DAI tokens, the owners of the maker tokens must deposit counterweights through an Ethereum transaction, which are then frozen according to the value of the tokens. Depending on how Ethereum trades, the Maker ethers need to add or subtract Ether to hold the value of the DAI.

I do not quite understand how exactly it works, but it seems to work amazingly well: according to Coinmarketcap, the price of the approximately 38 million DAI tokens oscillates around one dollar each. Thanks to the DAI tokens and decentralized exchanges on Ethereum, it becomes possible to swap all tokens on Ethereum, including the ethers, for a token-linked token - without relying on any central middleman in this way.



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A maximum block size of 32 megabytes, larger messages in the OP_Return field, and a handful of new opcodes: Bitcoin Cash made another hardfork on May 16, 2018. Negative side effects do not seem to have occurred so far.

Some call it hardfork, the others an upgrade: Few things evoke so much disagreement as the network wide, not backward-compatible rule change at Bitcoin. While Bitcoin developers themselves are still shying away from using a hardfork because they fear they will be able to split the network, Bitcoin Cash developers understand hardfork as a very normal tool to further develop the protocol.

On May 16, 2018, they once again demonstrated that hardfork, at least for Bitcoin Cash, is actually just a way to upgrade. At block 530.350 the hardfork was initiated, six blocks later the changes to the rules were activated. Nodes that have not upgraded will no longer be part of the network as soon as a block appears that uses the new rules.

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The hardfork has three main changes:

First, the maximum blocksize is increased from 8 MB to 32 MB. For everyday transaction patterns, this means that Bitcoin Cash has the capacity for about 11,200,000 transactions a day or 130 transactions a second. So far, not much has been used. On average, Bitcoin Cash has about 0.3 transactions per second, or about 20,000 a day. A good visualization of this somewhat sad state is the website TX-Highway again. The highway has been extended to 32 lanes, although as far as the eye can see only one car is visible.

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Second, the size of the standard messages in the system is increased from a maximum of 80 to up to 220 bytes. This is especially important for OP_Return, a popular method for writing messages to the blockchain. OP_Return is used to bring tokens such as Colored Coins or Counterparty on the blockchain and has been known lately mainly by Memo.Cash, a kind of Twitter on the Bitcoin Cash Blockchain. Thanks to the hardfork fit now 220 instead of previously 80 characters in a memo. As the screenshot below shows, this is already being used extensively:

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The third part of the hardfork is the hardest to understand, but most importantly according to the developers: a number of opcodes that were originally in Bitcoin code but have been turned off have been reactivated. Opcodes are part of Bitcoin's scripting language, which is used to verify transactions. The following codes are now reactivated: OP_CAT, OP_SPLIT, OP_AND, OP_OR, OP_XOR, OP_DIV, OP_MOD, OP_NUM2BIN, OP_BIN2NUM.

What you can do with it is hard to say. Steve Shadders, the developer of BitcoinCashJ, and the one who first suggested reactivating the codes, explains it this way: "Among developers, one could say that the uses of fundamental script language operations are so commonplace that you can do them do not have to enumerate. We use such basic operations as math, string operations, and bitwise logic so often every day that it's almost impossible to produce a useful code without them. "

A bit more concrete were on 16 May 2018 Chris Pacia of OpenBazaar and Emil Oldenburg of Bitcoin.com. Pacia has used OP_CAT to build a multisig address based on a Merkle Tree. This method has the advantage that the public keys that are not involved in a payout are also not published, and that the amount of data required decreases significantly with an increasing number of parties involved. The process was developed, as far as I know, under the working title "MAST" by Blockstream for the Sidechain Alpha. Oldenburg has meanwhile formed a puzzle transaction using OP_XOR. Whether and how useful this will all be, is currently not to say. If you are interested (and have enough knowledge) you can experiment with the new codes on the OpCodes playground.

Problems have not yet occurred after hardfork. There is no movement to preserve the old Bitcoin Cash chain ("Bitcoin Cash Classic"), no signs that the number of active full nodes has collapsed (because they've missed to upgrade on time), and no reports of crypto exchanges or wallets that have been removed from the blockchain. Fears that the new Opcodes would open new attack vectors have not yet been confirmed.

On the course, this good news does not seem to have any influence. Since the hardfork the Bitcoin Cash price has fallen and stands at the editorial time at $ 979.28 USD.



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Short note:

Since I'm moving from Mauritius to Germany in the next few weeks, I do not have much time to post on Steemit at the moment, I hope you understand and we'll see each other again when I'm settled in my new home.

Have a nice day!

LOVE&LIGHT

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Thank you for putting your effort bringing this together into a one article. The stable coin is one of necessity in a volatile market like cryptocurrency. Many of us are even afraid to touch it because its volatility and some called it risky.

When I researched it before, the one reason its volatile is because only 1 percent of the people are engaged on it. Hopefully in the future as more people have known it the higher the prices and the less volatile market could be.

I am not against Bitcoin Cash and hopefully in the future it can prosper as like as other crypto in the market. Thanks you @danyelk

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is hard to die ...............

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Great!

Hi @danyelk,

Really enjoy your posts and want to see if you'd be interested more profit potential. TIMM is not quite out yet, but is looking for creative talent. If you are not sure, give us a follow and at least get a free trial to check us out.

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Cheers!

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Thank you okay I follow you but I have very little time at the moment will check you out when I have more time.

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Here's our new Discord channel invite, so you can join us there.

Stable coins seem to be the new hotness. The ones I find most interesting are the ones that are decentralized and have a coin that grows in values when the community keeps it stable.

Stablecoins are awesome - amazing application of crypto

MoneyToken ICO check it out also will have there own stable coin but also crypto based loans no more credit scores.!

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Okay cool thanks I will have a look at it.

I met some of the guys from DAI Stablecoin last night in New Orleans. Gave a big group of them a pedicab ride to dinner. they seemed super excited about what they were doing, and they also tipped well, which is always a sign of stability! :) thanks for the article. Finding stability in the crypto market seems important if these coins are to become more like actual currency and less like investments or stocks...

Did you look at havven? It’s like Dai but backed by transaction fees.

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Nice have to check that out thanks.

I’m very excited about BlockOne and everything Dan Larimer has done for the blockchain community. EOS i’m All In!! Check out Dan Larimer’s interview here and please follow me as we will show you the throughput technology in real time and daily updates on how my organization is helping gentrify Los Angeles , pushing the homeless out into the suburbs and raise property values via crypto currencies and un blocking the chains!!

For any of you who feel pitty for my lil bro, DONT!! His life is probably a whole lot funner than yours...

I hope these stablecoins, in particular TUSD, help reduce volatility in the market and bring some maturity to the crypto space in the second half of this year. It does look like a good development.

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Don't hope but believe ;)

Cryptoworld is a beautiful one, amazing and filled with wonder, it really seems you have a good grasp of the matter,
Thanks for shearing from such awesome wealth of knowledge.

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Your welcome and thanks!
Yup been in Crypto since 2012 and I love it everyday some new stuff it is an exciting time we are living :)

Really interesting, I should invite you to steemit school to lecture us.

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Thank you!
What is steemit school? Not that I am a good teacher just like to know what it is ;)

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Most welcome sir.
Thanks for sharing this crypto currency

Interesting and informative post , waiting for your next one

Digix DAO definitely has my interest! I'm going to dig more into all this!

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very useful review. thank you, author

good post
have a nice time

please help me to know what i ought to know and thanks for this vital information@danyelk

Wow. You explain the concepts pretty well.

crypto gold bitcoin cash is grat,and its a very good post,information is very important

good post but i hear news about bitcoin my friends saying bitcoin is falling down is this truth or not tell me @danyelk

Great in depth article and yes many people will gravitate towards stable coins for what they do is keeping stable. Many people already do that with USDT.

Hello, thanks for information/ dzięki za informacje szkoda że nie umiem into angielski ;D

You do too innovative thinking.

buy when there is blood in the streets.

ryptoworld is a beautiful one, amazing and filled with wonder, it really seems you have a good grasp of the matter, Thanks for sharing to us @danyelk

Before you get too enthusiastic about ETH/EOS/BCH or any other coin, I'd read this first -- https://medium.com/@StopAndDecrypt/the-ethereum-blockchain-size-has-exceeded-1tb-and-yes-its-an-issue-2b650b5f4f62

They all share systemic flaws in their scaling choices, which means that the alt-WRECKENING will be upon us soon.

The endless cheerleading of these altforks/altcoins without any critical analysis is rampant.

Do your homework, don't get burned.

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Good point but I don't care since 2012 cryptos have made me so much money if something bad happen I still will have a good life.

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Its not about you having a good life, its about preventing a complete disaster when people's investment of time and money evaporates like a drop of sweat in the Sahara.

The article clearly lays out why scaling is hard, and precisely why the coins (and more) mentioned are going to cross the rubicon of impossibility -- and fail.

You may be set for life, but plenty aren't. This is a warning so they understand the risks they are taking.

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Agree to this comment. So far cryptos look good to speculate and make some fast money but as a long term investment it is still too risky.

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I get your point but an investment is always risk not just in crypto but in stocks or your own business etc. NO RISK NO FUN

What happens if you do not take a risk? If you do nothing? Correct. Nothing happens. Everything remains as it is.

  • You win nothing
  • You do not develop any further
  • You create nothing meaningful

Everybody has it in his own hands!

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Agreed.Any form of investment is a risk so people should be prepared to lose that money if things go wrong. If you are investing more money than you can afford to lose, then you are not being sensible with your hard earned cash. I wouldn't totally trust medium because they rarely post anything positive about cryptocurrencies, anything on medium should be taken with a pinch of salt.

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Sorry dude but your reputation gives me red light.

I have lost lots of money on fake program. Can uou plz share a leget one.

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What program are you talking about you need to be a bit more specific.

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I was invested in electronium, TXZ and dubai coin.. they al game me loss

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There are so many coins out there the only thing I can tell you is do your research and then you invest.

For sure it's not to late to buy some BTC, ETH, EOS, Tron, NEO or just buy Steem since you are already here you can work very well with a lot of Steem Power.

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If i bought steam.. what is tge prediction of growth.. any chart or analysis there ?

You are very creative and innovative person i like that too much <3
Keep going good luck for future work <3

I love the projects. I hope Africa also benefits

Thanks for this!

Wow, lots of great info there, def. worth a resteem. Always important to stay up to date on new coins and fundamentals so thanks for the simplification. I do technical analysis on Bitcoin and alt coins daily so anyone that could benefit from that give me a follow and check it out. Thanks :)

Thanks for sharing this, I love the cryptoworld <3

@danyelk,
Thanks for the great info. I hold Bitcoin Cash, Bitcoin, and Steem. Not much, but at least some! Lol. Good luck with your move!
@Lymmerik

Helpful information and interesting too

Really love ur work keep it up on ur write up bro

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Hello friend, excellent publication, I liked it a lot. Count on me, I invite you to visit my profile and count on you too, Regards

I met some of the guys from DAI Stablecoin last night in New Orleans. Gave a big group of them a pedicab ride to dinner. they seemed super excited about what they were doing, and they also tipped well, which is always a sign of stability! :) thanks for the article. Finding stability in the crypto market seems important if these coins are to become more like actual currency and less like investments or stocks.

Guau.. This is a Professional post for Steemers!!!! thanks for make this net better!!!

Very few of these are stable coin. Bitcoin Cash? Come-on it is MORE volatile than Bitcoin. DigixDAO is not stable. Look at the chart. Nothing based on gold is going to be stable as gold is a very volatile commodity.

So we have currently DAI, USDT, and TrueUSD. DAI isn't on any real exchanges so basically its USDT and TUSD. USDT is very likely a fraud and currently under investigation by the Treasury Department.

Kind of slim pickings in the stable-coin department. Clearly opportunity for someone to deliver a legitimate and trusted stable coin.

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I didn't wrote that Bitcoin Cash is a stablecoin I wrote about Bitcoin Cash's last fork you can read it in the headline it is a second article in the post.

You got a 14.20% upvote from @postpromoter courtesy of @danyelk!

Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!

Think I should shift from poker to crypto

Great as always

Great information! Your post was quite useful. I will create my first post soon. Great things take time :)

DigixDAO and MakerDAI both very interesting projects

Thanks so much Danyelk for this article. This is the first article In have read and gotten an insight in to cryptocurrency world. I now know the lost stable crypto-currencies such as : CGC TUSD Bitcoin Cash. This has given me more interest In this currencies and I wish to know how to invest in them.

Thanks so much Danyelk for this article. This is the first article In have read and gotten an insight in to cryptocurrency world. I now know the lost stable crypto-currencies such as : CGC TUSD Bitcoin Cash. This has given me more interest In this currencies and I wish to know how to invest in them.

Thanks so much Danyelk for this article. This is the first article In have read and gotten an insight in to cryptocurrency world. I now know the lost stable crypto-currencies such as : CGC TUSD Bitcoin Cash. This has given me more interest In this currencies and I wish to know how to invest in them.

DAI from MakerDAO looks really promising. At the moment you can only open CDPs with ERC20-Tokens, but in the future it will also be possible to open CDPs with other cryptocurrencies like bitcoin, litecoin and so on. With that we can create a true decentralized stablecoin where the investors can be pseudonymous.
The future looks bright!

I’m very excited about BlockOne and everything Dan Larimer has done for the blockchain community.

Stablecoins-- its really awesome

Yessss this is awesome! Well done ❤

Thank you @danyelk for the great information! I think the gold coins have potential to be key game players for the future in the cryptocurrency world. Right now I think USD tethered coins are okay, but they won't be the best for long. Eventually I believe hyperinflation will greatly devalue the dollar and change the economic landscsape of the world for a long time.

No reference to Jibrel Network? I think some of the projects referenced in this post could certainly go the distance, particularly the DAI token. Whatever the outcome though, whoever manages to gain the upper hand in the stablecoin market stands to reap enormous reward for doing so.

Very useful post. Thanks for sharing @danyelk :)

Congratulations @danyelk!
Your post was mentioned in the Steemit Hit Parade in the following category:

  • Pending payout - Ranked 2 with $ 762,98

forgot bitUSD/bitCNY the oldest and arguably most traded stablecoins

Cool article! Thank you. I'm want to invest in asset of LibreCash stablecoin and have been writing about this too.

Interesting information shared by the author but some coins in this crpto world are unpredictable and their stability is like a bubble which can be blow up any time

Hello, thank you for adding to Steemit !

I've upvoted and Followed you; Please Follow back and we can Collaboration each other to succeed :)

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awesome post dam a lot to read but interesting

Thank you for the great post 👍🏽
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I'm not against Bitcoin Cash and in the future hope it will be rich in the market like other crypto. Thank you @ Ahsanul
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thank you for taking the time to gather all that very interesting information since the future is the bitcoin effective every day that takes the biggest power in international markets and that is the new currency of the future that we are going through the new era of technology, where everything will be digitally thank you greetings

Very informative article.

Nice overview! Check out PKT as well, it really perform stable unless all the big caps

I agree with what you say, and I hope also the price of crypto will be stable

I find this so helpful to understand whats going on. Thank you for your great content.

informative