Steemit Crypto Academy Week 7 Homework Submitted To @yohan2on| The TrueUSD Stablecoin| by @bukkyi4u

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INTRODUCTION

The TrueUSD(TUSD) is one of the very important and promising stablecoins that have been introduced into the market. After it was launched in the year 2018 it quickly became one of the most favourite stablecoins being traded on.

True USD (TUSD) is a crypto coin that is backed by a fiat commodity. The very first to issue this stablecoin was the Trust Token team. In some quarters the TrueUSD (TUSD) is considered or seen as an alternative to Tether USDT.

In this article I am going to educate you on everything you need to know about the TrueUSD stablecoin that was mentioned by professor @yohan2on for our week 7 research.

WHAT REALLY IS TRUEUSD(TUSD), AFTERALL?

The TrueUSD(TUSD) is a stablecoin that has entered the market in recent times. Interestingly, it has its value pegged to the United States dollar.

This stablecoin was created and introduced by the TrustToken. The TrustToken was also the first to issue the stablecoin. Again, the peg and reserve are maintained by the TrustToken. A very unique feature of this coin is the transparent manner in which it was introduced.

The TrueUSD (TUSD) can be purchased in the ratio of 1 is to 1 against the US dollar. It can be gotten from the TrustToken. This stablecoin was introduced in a very transparent manner and this helped a lot in its adoption. Statistics has it that it is the 37th largest stablecoin in the market in terms of market capitalisation.

TUSD STABLECOIN

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It might interest you to know that the TUSD simply stands for 'True US Dollar'. As the very first tokenized assets created and introduced by the TrustToken it is fully transparent and well-regulated.

At a ratio of 1 is to 1, it is tokenized against the US dollar. This token is an ERC-20 token. Actually, it was built on the Ethereum blockchain. Equally, its security comes from this fact.

One of the important benefits of the TUSD is that when using it you would not have to be bothered about the time constraint that is experienced in the traditional financial system. Also, you won't have to worry about the extra charges that could have come with the traditional-style finance system.

This token has the benefit of a smart contract that can be undertaken in an open manner; it is an ERC-20 token and, hence, enjoys the stability and expansion inherent in the Ethereum blockchain.

The TUSD is issued in an escrow. It is created and destroyed based on demand by users. In this manner it is fully collateralized against the United States dollar.

HOW DOES TUSD WORK?

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The TUSD works on the Ethereum blockchain. It is operated over the Ethereum smart contract system. The Ethereum smart contract system operates in such a way that it can issue the US dollar in a tokenized form.

The smart contract of the system is made to produce an equivalent amount of TUSD whenever a certain amount of the US dollar is sent into the system for the purchase of the token. This produced or generated amount of the TUSD becomes part of the circulating supply.

Also, whenever a certain amount of TUSD is to be redeemed the smart system burns the same amount and removes it from the circulating supply. At the same time, the equivalent amount in US dollar is paid out to the user.

THE SAFETY OF THE TUSD

First, as has already been pointed out, this stablecoin is backed by a well-known and safe blockchain. Again, it was introduced in a very transparent manner. These add to the security and safety features. However, there are some other features which make it very safe. They include:

• INSURANCE OF ASSET: the TUSD accounts that are held are insured by FDIC;in this way, holders of such accounts are shielded from misappropriation of such funds by the laws governing the US.
• SECURED SMART CONTRACTS: reports have it that the smart contract platform upon which this token is founded has been separately audited three times by three different firms;interestingly, no security issues have been uncovered with the system.
• REGULAR AUDITS: the TrustToken platform is audited every month. This regular audit is carried out by the Cohen and Company accounting firm. In this way funds are escrowed to match its supply.
• ESCROW: the TrustToken has no access to the funds of users; this is because the funds are held in escrow by third parties not related to the TrustToken.
• REGULATION AND LICENSING: interestingly, the TUSD is the first stablecoin to be issued in the US; also, TrustToken operates in the US under full licensing.

BENEFITS OF TUSD

There are quite a number of benefits associated with the use of the TUSD. Such benefits include:

  ***SECURITY AGAINST VOLATILITY***

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The stability of the TUSD is an advantage when seeking to enter the cryptocurrency market without being instantly negatively affected by the high volatility. In the same way traders and investors can also exit safely while relying on the stability of the coin.

   ***TRANSPARENCY***

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It is reassuring to know that the TUSD remains very trustworthy and transparent among stablecoins. It undergoes a regular monthly audit. This is meant to ensure that the circulating supply matches the amount of US dollar held in escrow.

    ***HIGH LIQUIDITY RATE***

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The increasing number of trading pairs give the coin an added advantage of high liquidity rate. Also, it can easily be stored in any wallet that is compatible with ERC-20 and redeemed, as well. This reduces the risk with third parties.

TUSD WALLETS

The TUSD can be stored in any ERC-20 compatible wallet. This means that there is a large choice of both web-based, desktop and mobile wallets to choose from.

Interestingly, hardware wallets, like Ledger, can also be used. Hardware wallets are especially advisable for large quantities of the token because of its added security features

STORING AND TRADING OF THE COIN

TUSD can be purchased from the TrustToken website. This can be done after the completion of a few KYC. Usually, tokens are issued in the ratio of 1:1.

Again there are a lot of trading pairs available for TUSD. This can be seen from coinmarketcap.com. TUSD has over 14 exchanges. BitX is the largest with over 50% volume being carried out there. Also, other important exchanges available for TUSD like Bithumb Singapore, BitMart, OKEx, Coinall, Binance and MXC.

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CONCLUSION

TUSD has received a lot of adoption from the market. This is because of its transparent manner. This gives it the promising feature of becoming the top stablecoin in the near future. People are not afraid to use the service and this is worthwhile to note.

Its foundation on the Ethereum blockchain gives it so much added security. Although its market cap stands at $150 million, if it becomes widely preferred among traders this figure could skyrocket.