Crypto Academy Week 7 Homework Post for [@yohan2on] | Stable coins-Part2
INSTITUTION: STEEMIT CRYPTO ACADEMY
COURSE: Stable coins - Part 2
CRYPTO PROFESSOR: YOHAN2ON
Homework task: Write about any one of the following Stable coins:
*USD Coin (USDC)
*TrueUSD (TUSD)
*Paxos Standard (PAX)
*Digix (DGX)
In my post today, I will be talking about USD Coin.
Suces https://www.circle.com/en/usdc
USD Coin Review
USD Coin (USDC) goal to emphasize the development of an efficient mechanism for conducting financial operations. It came into crypto currency world in September 2018 hence it to s a relatively new project brought about by Centre consortium, It is a dollar-backed token based on an open source stable source framework developed by Center (a partnership made up of Coinbase and Circle). The use of USD Coin will make international operations much easier and faster than with traditional fiat money. It is not a cryptocurrency that can be mined, it only works with the exchange, purchase or sale of digital currencies.
Another good spot about this project is that it is transparent unlike some stablecoin that has what I will refer to as relaxed regulations, USD coin is fully regulated and transparent. As a matter of fact, it must work with regulated financial institution in other to maintain full reserve of the equivalent flat currency.
Thanks to Coinbase, you can store your USDC with the Coinbase Wallet. However, there are other options that we can count on when making transactions with virtual currency. Among the alternatives, the following stand out:
imToken. Citowise. Trust Wallet. Ledger.
In general, it objective to protect the core values of digital currencies such as stable cryptocurrencies, decentralization and security. Besides, they aim to maintain price stability just like traditional currencies. For truly decentralized and stable cryptocurrencies, it is necessary to establish an order that can maintain the exchange rate between fiat currencies without the need for third institutions to manipulate them.
Is USD Coin Really Safe?
From the point of view of software and system, the fact that USDC is a high security level but centered money brings with it risks. Because any address that belongs to USDC is detected, there is a possibility that that address will be frozen temporarily or permanently.
Of course, USD Coin creators, who are aware of this risk, take precautions and update them accordingly. However, it is still useful not to act by thinking that it is 100 percent safe. Likewise, we can say that this possibility is valid in all stock market models.
Even if it is a fixed-value cryptocurrency, it is always useful to keep track of updates and changes. However, since it is a fixed crypto currency, it can be an ideal option for those who will invest for the first time in the market.
Pros & cons
Since USD Coin is a central stablecoin, it is possible to blacklist any address or to freeze the USDC in the address temporarily or permanently. This also applies to other fiat-backed stablecoins, including Tether.
Its future prospects and trajectory have made users more and more interested.
Anyone can make their deposits of dollars that they have stored in their bank accounts and convert them into tokens.
USD Coin is based on an open source, transparent and membership system created by CENTER for stablecoins. With the membership system, other financial institutions will be able to launch USDC on the market provided that they meet various conditions. In this respect, there is an ecosystem behind USD Coin that can develop and grow more.
Thanks for reading through.
REFERENCES
Coinbase.com