Hello dear crypto friends, hope you will like my entry of the assignment given by professor @yohan2on In this article, I desired to write on the USD Coin(USDC).

Source

_INTRODUCTION

As Bitcoin keeps maintaining its expansion, the need for stable coins also has been prospering as well thus boosting the initiation of more stable currencies backed by real-world assets. This justification was what introduced the usage of stable coins like US Dollar Coin (USDC), Tether (USDT), or TrueUSD (TUSD).

In the course of this homework, I will like us to understand comprehensively what the USDC is and how it functions. Just read till the end.

What is USDC

The Us Dollar Coin (USDC) is another type of stable coin which was developed in a joint move with the assistance of Coinbase, the most recognized and accepted cryptocurrency exchange, and Circle, a crypto finance corporation founded in Boston. Circle prevails to be supported by different high-profile organizations, in which Goldman Sachs is included.

It is pegged at 1:1 with real US Dollar but runs with ERC-20 smart contract and has been promoted to the Algorand and Solana blockchains. This means that USDC can be distributed and reclaimed as a US Dollar because it has the same equivalent as the US dollar in reality.

How is USDC Generated

Unlike other known cryptocurrencies, USDC is never being mined but needs to be purchased with the US dollar as Ethereum ERC-20, Algorand ASA, and Solana SPL tokens from any accepted exchanges. Circle clarified that there are approximately four billion tokens in circulation presently.

How Does It Function

USDC token is backed with a single US dollar according to the statement made by the circle. There is a method of changing the US dollar into USDC. This process is known as tokenization. And it requires some procedures.

The three processes of tokenizing your USD into USDC are:

1. First, You need to make a transaction by sending USD to an issuer's bank account.
2. With the help of a smart contract, the issuer can now generate an equal amount of USDC.
3. The newly created USDC is then transferred to you while the substituted US dollars are held in fund.

You can as well, redeem USDC for USD but in this case, the process is reversed.
Here are the process of redeeming or restoring USD.

1. To start with, you will need to notify the USDC issuer by giving them a request to restore or redeem an equal amount of USD for USD Coins.
2. The issuer then sends the smart contract a signal to make an exchange of the USDC for USD in a balanced amount. In this process, an equal amount of the USDC occurs to be taken out of circulation.
3. The issuer dispatches or transfers the requested number of USD from its funds back to your bank account.
   Now, you receive in your bank account the same amount of USDC that was tokenized.

How to make use of the USD coins

As the USDC backed in one-dollar prevails on the Ethereum blockchain, it can be employed in apps that support cryptocurrencies since it is an ERC-20 token.

To perform any action with Circle, You must create an account with them and meet their know your customers(KYC) identity requirements before you will be able to link your valid bank account.

With Circle USD, one can simply execute actions like;
•Tokenizing a USD;
•Reclaiming a USDC;
•Sending USDC out to ERC20 compatible Ethereum addresses;
•Staking USDC from external Ethereum wallet addresses.

Circle won't charge you for executing actions like tokenizing or redeeming services but can do that in some certain cases.

The minimum amount of USDC to redeem is 100USDC and agreements are being processed on the business days.
The procession of the USDC can last for 24hrs before being released.

Carrying out a tokenization process does not attract any limitations; that is, you do not have a minimum amount to tokenize but the process can stay up to 2 days before it can be achieved.

In general, the USDC can be purchased or exchanged for other coins on coinbase and poloniex or other popular trading platforms like Binance or Huobi.
Additionally, it can be purchased on
CoinEx (paired with USDT).
Coinsuper (paired with BTC, USD).
OKEx (paired with BTC, USDT).
CPDAX (paired with BTC).
Hotbit (paired with USDT).
Kucoin (paired with BTC, ETH, USDT).
Korbit (paired with KRW).
FCoin (paired with USDT).
LATOKEN (paired with BTC, ETH).
SouthXchange (paired with BSV, DASH).
COSS (paired with BTC, ETH).
Crex24 (paired with USD).

With USDC, you can simply buy items or products in different dApp, blockchain-based games, and on other supported exchanges.

One can as well, receive or send money globally in a more secure means without any problems and this is done instantly.
Just like Teher and DAI, USDC can be stake as a stable and reliable coin for crypto dealers.

USDC can be stored in one of the Ethereum wallets like MyEtherWallet, MetaMask, Mint, or Jaxx wallets because it is an ERC-20 token.

In conclusion, even though the USD Coin is not famous like Tether, it still has some recommendations for its regulations, audition and the speed in transactions.

Who Am I?

_{I am just a beginner who lives in the Western Hemisphere of Africa with his parents. My name is James but you can notify me with @churchangel, here.😂 Being the first child, My parents, Mr. and Mrs. Onu who are just wonderful And hardworking couples. My father is an electrical engineer while my mother is a trader. They always work collaboratively just to make sure that their children don't lack the necessities. I graduated from high school in the year 2018. And My favorite subjects are physics chemistry and biology. I am going to enter the university because my goal is to study these subjects in the future and to become a respected professional in one of the fields. Between, I am an accomplished computer hardware technician. After I obtained my SSCE certificate, I took interest in learning more about computer hardware and its maintenance. I am obsessed with all tech-related and I enjoy using my skill to contribute to the exciting technological advances. I'd spend my free time learning about programming and also assisting people on how to fix any problem related to Tech! 💞*********🌹❤️Special thanks to my supporters❤️🌹********💞 At this very moment, I am unable to find a suitable words to express my gratitude over all your supports. You guys generosity never ceases to amaze me. This space has become a place of fun for me. All because of colleagues like you. Thanks for being there for me. I will always appreciate all your kindness and supports towards me and my family💕.}