Hello Everyone! this is my first homework at Steemit Crypto Academy.
The assignment for this week is to write an article that will explain one of the 4 stable coins given by professor @yohan2on which are: USD Coin (USDC), TrueUSD (TUSD), Paxos Standard (PAX), and Digix (DGX).

For this discussion of StableCoin part 2, I will take USDC Coin (USDC) as the main topic in my article.

What is USD Coin?

Source

USD Coin (USDC) is a type of cryptocurrency referred to as stablecoin. The USDC is a stable digital currency with a ratio of 1:1 to the US dollar of 1 USDC = 1 USD. USDC can be bought, sold and transferred to other carriers easily, USDC works ethereum-based with ERC-20 smart contracts that make USDC highly secure. USD Coin (USDC) was inaugurated on September 26, 2018, thanks to the Circle consortium's collaboration with Coinbase. USDC is one of the alternatives that can be found in cryptocurrency markets that are also supported by USD, such as Tether (USDT) or TrueUSD (TUSD). As of November 23, 2020, USDC has become the second largest stablecoin in the world by market capitalization.

How Does USD Coin Work?

Source

USD Coin is not simply printed. Circle strongly guarantees on each USDC stick supported with one US Dollar. The process of changing the United States Dollar is called tokenization.

Tokenization of USD to USDC is a three-step process:

• User sends USD to token issuing bank account
• The issuer will use a smart contract to determine the equivalent AMOUNT of USDC.
• USDC will be sent to the user, while the replaced United States dollar will be stored as a backup.

Convert USDC to USD:

• The user sends a request to the USDC issuer to determine the equivalent amount of USD for the USDC token to be redeemed.
• The issuer sends a request to the USDC issuer to determine the equivalent amount of USD to the USDC token that the user will exchange.
• The issuer will res send the amount of USD requested by the user from their backup to the user's bank account. Users will receive a net amount equivalent to USDC tokens and then deducted from the costs incurred.

In contrast to the most popular stablecoin Tether (USDT), on the creation of USD Coins users are obliged to provide full transparency and cooperate with various financial institutions to maintain the full reserves of equivalent fiat currencies.

Advantages of USDC coin

• USDC smart contracts are available as Etherium-based tokens. That's why USDC integrates token smart contracts with applications.
• The USDC stablecoin ecosystem is growing rapidly with open standards and smart contracts in stablecoin markets around the world.
• Users can trade 24 hours a day and 7 days a week
• USDC is a very stable currency with 1 USDC = 1 USD

Conclusion

That is my explanation of USD Coin. After I read many articles in the making of this article, I concluded that USDC is a stable coin that has the same value as the UNITED STATES Dollar which is 1 USDC = 1 USD and is very safe based on the regulations of the issuing company, this coin is very adaptable and adopted globally.

I apologize if there are still many mistakes that you can get when reading my explanation earlier, I would be very grateful if you told me in the comments column below.

Thank you for reading my article, I hope it is useful for all readers.

cc:
@steemitblog
@steemcurator01
@steemcurator02
@yohan2on