HELLO FRIENDS!
This is my entry to the WEEK 7 HOME WORK BY PROFESSOR @yohan2on.

source[@yohan2on]

I wouldn't want to bore you with much story so I did hit the nail on the head.
Before I proceed I will like to remind us on the meaning of STABEL COIN.

STABLE COIN

Stable coins is simply an attempt to create a cryptocurrency token with a stable price.
Also, Stable coin is designed to reduce the volatility of price of stable coins.

Why I had to highlight the meaning of a stable coin was simply because what is am going to be discussing on is also a type of stable coin.
Hence, # USD COIN (USDC)
Therefore, USD COIN Simply refers USD Coin (USDC) is a relatively fresh stable coin pegged to the US dollar. It was launched on September 26, 2018, in collaboration between Circle and Coin base. USDC is an alternative to other USD backed cryptocurrencies like Tether (USDT) or True USD (TUSD).

Bringing US dollars on the block chain allows moving them anywhere in the world within minutes, and brings much-needed stability to cryptocurrencies. Also, it opens up new opportunities for trading, lending, risk-hedging and more.

WORKING RATE OF USD

I will say Just like every other block chain, USD is different and works well reason been that every USDC is baked and been fund by US Dollar. The process of turning US dollars into USDC tokens is called tokenization.

Tokenization USD into USDC is a three-step process:

• A user sends USD to the token issuer's bank account.
• The newly minted USDC are delivered to the user, while the substituted US dollars are held in reserve.
• The issuer uses USDC smart contract to create an equivalent amount of USDC.

WAYS OF REEDEMMING USDC

*A user sends a request to the USDC issuer to redeem an equivalent amount of USD for USDC tokens.
*The issuer sends a request to the USDC smart contract to exchange the tokens for USD and take an equivalent amount of tokens out of the circulation.
*The issuer sends the requested amount of USD from its reserves back to the user’s bank account. The user receives the net amount equivalent to the one in USDC tokens, minus all incurred fees).

FURTHERMORE, Stable coin like USDC
*Short cryptocurrencies without cashing out and make it easier to buy cryptocurrencies in the future;
*Avoid traditional financial instruments and institutions;
*Avoid hyperinflation (for people living in countries like Venezuela or Turkey);
*Send money instantly, globally, securely and at low cost;
*Purchase items in various crypto dApps, exchanges, and block chain-based games.

SOME ADVANTAGES OF USD

As the saying goes every thing in this life have both advantages and disadvantages. Below is the Advantages of USD Stable coin.

• USDC is built on ERC-20 standard so this means that the funds transfer speed is as good as ETH has
• As it said of the official Circle website, people can transfer US Dollars across the world within seconds with the help of USDC

SOME DISADVANTAGES OF USD

Some of the Disadvantages of USD Stable coin Include;

• SD Coin is a very new project with indeterminate perspectives and it is not clear how it will function in the future
  We can just guess if this cryptocurrency will be in demand or not.

• USDC is not the first stable coin that is trying to become an analogue of fiat currency
  It can be said that all other stable coins faced with some problems and there are no guarantees that USD Coin will avoid those.

Thanks for Reading.
To the notice of Professor @yohan2on and @yohan20n-week7.

Work citation:
Professor @yohan2on
en.wikipedia.com
cryptonews.com
simpleswap.io

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