Crypto Academy Week 7 - Homework Post for Professor @yohan2on| about Stable coins - Part2|By @cryptocheta

Hi Steemians! It is another wonderful week of lecture " we learn every day" from what I have seen in this week 7 Crypto Academy. As usual, I always enjoyed the lecture of professor @yohan2on about " about Stable coins - Part2" Great! work and now is the time to do some homework, which is "Write about any one of the following stable coins"

Homework task: Write about any one of the following Stable coins

USD Coin (USDC)
TrueUSD (TUSD)
Paxos Standard (PAX)
Digix (DGX)

Am talking about "Paxos Standard (PAX)"

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What is Paxos Standard Token (PAX)?
Paxos Standard Token (PAX) is an ERC-20 token assigned on the Ethereum blockchain. As a standardized stablecoin collateralized by the U.S. dollar, which produces benefits of the blockchain technology and stability of fiat currencies together.
It results in a steady crypto that offers:
Instant global transactions
Immutability
Decentralized accounting
24/7 transactions

To add more to that, every PAX token is entirely backed by the equivalent amount of U.S. dollars, meaning it can also be redeemed for USD at any time. Nevertheless, according to U.S. Law, Paxos Standard is not a security.
PAX Standard was founded in the light of the infamous Tether controversy, where the foremost market stablecoin has come under scrutiny for printing Tethers out of thin air during the early 2018 cryptocurrency market bull run. Paxos team has noticed the opportunity and made an additional effort to be as transparent as possible. Paxos issues and also burns its tokens using an audited smart contract, investigated by smart contract auditor Nomic Labs. Withum, which is one of the top U.S. auditing companies, regularly verifies the reserves.

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Who Is The Team Behind Paxos?
Paxos team consists of experienced professionals from different backgrounds, including former Wall Street and also Silicon Valley employees. Charles Cascarilla is the company co-founder and CEO

Paxos Vision
Paxos team sees a future in which blockchain is not a part of a major financial revolution, but a vital element of its evolution. In the big picture, the company desires to improve the economic ecosystem by producing a global frictionless network for simple, mobile, and instant exchange of assets.

How Does Paxos Standard Token Work?

The Paxos Standard is designed to have increasing use cases. Today, its primary use case is to limit cryptocurrency asset volatility, remove friction from cross-border transactions, and also become a reliable payment vehicle for cryptocurrency assets and other blockchain assets.
And in the future, Paxos expects to be used for consumer payments and the stable store of value for people outside the USA, especially in countries with unstable national currencies.

Here is how tokenizing USD to PAX works:

1). A user can send USD to the token issuer's bank account.
2). The issuer creates the equivalent amount of PAX using the PAX smart contract.
3). The freshly minted PAX is delivered to the user while the USD is held in the bank account.

A similar but reversed process is used to redeem PAX for USD. Each Paxos Standard token can be purchased and also redeemed using Paxos.com. Upon PAX token retrieval, the tokens are immediately burned and taken out of circulation.
It is worthy to note the company does not charge any fees for both converting and also redeeming PAX tokens. The least conversion amount starts at $100.
Paxos utilizes third-party auditors for proving they hold the corresponding amount of dollars. Each monthly attestation report can be found here.

Is The Paxos Standard Token Different From Other Stablecoins?

The Paxos website highlights the following features of PAX:

Regulation: Paxos is regulated through the New York State Department of Financial Services.

Guaranteed cash deposits: For all collateralizing deposit is held at FDIC-insured USA banks.
Audited: For every Paxos Standard, the bank account is supervised by U.S. auditing firm Withum.

Security: The Paxos engages additional transaction monitoring and surveillance partners for an additional layer of compliance.

Daily purchase and redemption windows: The PAX tokenization and also redemption requests are processed in regular windows that promote free and frequent fund movement. All operation is usually done within one business day
No fees. The Paxos Standard tokens are issued and also redeemed without any additional charges.

These characteristics make PAX like the other newly emerged stablecoins: TrueUSD (TUSD), USD Coin (USDC), and Gemini Dollar (GUSD). And all of them are completely redeemable regulated ERC-20 tokens backed 1:1 which are backed by the U.S. Dollars, using Ethereum smart contracts to issue and also burn tokens, and are supervised by the U.S. auditors and regulators. Moreover, none of these platforms charge transaction/conversion fees (notwithstanding few exceptions).
The most notable difference separating PAX and its rivals are different partner organizations and more effective operations due to its “processing windows.”
All the current stablecoin projects are created to decrown the longstanding market leader Tether (USDT). It also employs a similar model but has declined to conduct regular audits and provide credible attestations. However, most USDT coins are issued on Omni protocol.
The only essentially different stablecoin within the top 100 coins is DAI. This Maker's project is not fiat-collateralized but still strives to retain value relative to USD.

Here is a brief overview of four different types of stablecoin projects:

Cryptocurrency-collateralized: These are the stablecoins whose worth is pegged to reserved cryptocurrency assets. Examples are: Havven (nUSD & HAV); Makercoin (MKR & DAI).

Fiat-collateralized: These include every stablecoins pegged to reserved fiat value. All fiat-collateralized coins are centralized by design. Examples: Gemini Dollar (GUSD); Tether (USDT); Paxos Standard Token (PAX); Digix Gold (DGX); TrueUSD (TUSD); USD Coin (USDC).

Algorithmic non-collateralized: The Software-based economic models seek to provide price stability without any collateralized assets. Example projects: Basis; Kowala; Fragments.

Hybrid: The stablecoins rely on a mixture of the approaches listed above. Example projects: Carbon.

BitBay is another cryptocurrency stablecoin project, newly has shared an interesting cryptocurrency comparison matrix, which sheds some light on how the most successful stablecoin projects stack up. Although, these axes of “enforceability” and also “decentralization” are vague.

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Where to Get Paxos Standard Token?
Paxos keeps on landing new partnerships with approved exchanges. Some of these exchanges are:
ABCC (paired with BTC, USDT).
BCEX (paired with USDT).
Binance (paired with BTC, XRP, EOS, XLM, USDT, ETH, BNB).
Bittrex (paired with BTC, USDT).
DigiFinex (paired with USDT).
CoinBene (paired with USDT).
CPDAX (paired with BTC).
Hotbit (paired with BTC, USDT, ETH).
Coinsuper (paired with USD, BTC).
Gate.io (paired with USDT).
UEX (paired with BTC, USDT).
Bitrue (paired with BTC, ETH, USDT, XRP).
Kucoin (paired with BTC, ETH).
Bit-Z (paired with BTC, ETH, USDT).
Upbit (paired with BTC).
OKCoin International (paired with USD).
FCoin (paired with USDT).
OKEx (paired with BTC, USDT).
ZB.COM (paired with BTC, USDT, ETH, ETC, LTC).
Paxos Standard Tokens can also be exchanged using the Paxos.com website.

Where Can We Store Paxos Standard Token?

The PAX is an ERC-20 token distributed on the Ethereum blockchain. Hence, it can be stored in any Ethereum wallet. The most popular ETH wallet options include MetaMask, MyEtherWallet, Mint, or Jaxx.

The Current State of The Project

Paxos has entered the cryptocurrency “bear market” and became one of the fastest-growing stablecoins. Its team is continuously working on new partnerships. Some of the newest announcements include PAX listing on Binance and partnerships with companies like Bitpay and Global Bitcoin Payment Service and others too.
In the future, Paxos foresees to become the cryptocurrency market leading coin.