Crypto Academy Week 7 - Homework Post for @yohan2on on Stable coins - Part2 Homework by @ebiis

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With our discussions on stable coins last week, I did a lot of reading and understanding on how stable coins aim to bridge the gap between crypto asserts and fiat money.
Crypto asserts which are boundless and involve total transparency of transaction, also have a hitchback of volatility. This which is caused by over circulation of the coins coins not stacked up by whale investors and other sentiments of crypto investors.

Fiat currencies on the other hand are usually bound by countries and government, centralized and transferability across borders involves much procedures.

Stable coin which is like the intersection in a ven diagram of crypto asserts and fiat currencies. Using stable coins makes trading less volatile and transferability of money boundless.

USDC (United States Dollar Coin) By CENTER and Coinbase

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The USDC is a dollar price pegged stable coin created under CENTER, although most of the rules were set by Circle.
The Coin which is accepted by many exchange platforms makes trading seamless and price volatility minimal.

Goals set by CENTER for the USDC

• A system for printing and disposing of currency to buyers so as to reduce price volatility.
• A system that enables transferability across all exchange platforms to increase acceptability.
• Strict usage rules and smart contract to manage and audit transactions for the USDC.

Investing
With the high volatility of regular crypto coins new investors become skeptical of entry into the crypto market, secondly these doesn’t make it fit for equity ownership and dividend rights. Therefore a more stable coin comes in handy here.
The USDC stable coin accomodates the owenrship of dividend and equity ownership and other investing rights since one USDC is a crypto copy of a US Dollar backed by CENTER.

Inter wallet transferability
As much as crypto wallets spending have taken upto 25% of all POS sales around the world, inter wallet transfer of assert still has some skepticism and trust issues among wallet issuing companies, CENTER is providing a network where individuals and businesses will be able to transfer asserts directly between wallets which will better business transactions.

Speed of Transfer
It takes between one to sixty minutes or even more on the average to transfer a bitcoin successfully between wallets. This is due to multilple confirmations as new blocks are being mined.
CENTER makes use of state channels, just like your normal bank transfers where only sender and receiver receipts are recorded on the blockchain so there is no need mining a new block on every transaction therefore making transfer time pretty fast between borders.

KYC (Know Your Customer) and Fraud reduction
With the advent of crypto technology and decentralized crypto it is has been noticed that with the zero identity needed for crypto transactions, fraud level on the system has seen a peak. Exchange platforms now require a KYC ( Know Your Customer) verification so as to be able to trace tansactions to individuals.
USDC also requires a KYC before buying their stable coin from CENTER, this way reducing financial fraud through crypto.

Audit and Governing
Auditing brings transparency, more in a centralized system, since CENTER is a centralized system for the USDC, it plans to setup a separate organization which will, audit, govern, and certify stable coins. CENTER which only provides the technology wouldn’t be in-charge of these as it will be only for technical support to the USDC.

Conclusion:
With the above study about CENTER on the USDC, it can be seen that the USDC will be a great project for the world, it will provide great acceptability among users and wallet providers, will reduce volatility, and increase transfer speeds as like that of the internet.
I am @ebiis and this is my week 7 homework for professor @yohan2on.

CC;
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