Steemit Crypto Academy - Week 7 - Homework Post for @yohan2on by @inmylife
Hi, there! It is another week of the Steemit Crypto Academy lectures, today I learned something about stable coins from professor @yohan2on , and here is my homework for this lecture.
Stable Coins
A stable coin is a currency category that only came into existence after the birth of blockchain technology. A stable coin maintains a stable exchange ratio with a certain target, such as the U.S. dollar. Stability means that the price of this currency will not fluctuate significantly over a period of time, and the price is relatively stable. Major stable coins include USDT, TUSD, GUSD, BitUSD, BitCNY, etc., Stable coins serve as a measure of value and can also hedge risks when the market flucuates.
USDC
USDC (USD Coin) is one open source encrypted stable coins whose value is pegged to the U.S. dollar. It is designed to help investors hold stablecoins and compete with USDT (a stablecoin issued by Tether), which is a controversial stable coin. It was launched in 2018 and is the first service project provided by CENTRE. CENTRE is an open source technology project started with the help of founding members Circle and Coinbase. Circle launched USDC to alleviate investors’ fears, and Coinbase joined forces to try the concept. They believe that focusing on the governance and supervision of stable coins is the key to compliance.
USDC is a stable currency backed by U.S. dollars, 1USDC=1 U.S. dollar. The token itself is also issued by a financial institution under supervision, and each token can be exchanged for one U.S. dollar. Because USDC is an ERC-20 token that runs through the Ethereum network, it does not need to go through traditional banking channels. It allows any person to transfer US dollars to any corner of the world in a matter of minutes.
Like other stable currencies, USDC is algorithmically linked to the value of the U.S. dollar, so it is "stable" relative to the currency (U.S. dollar). This makes spending cryptocurrency as easy as cash, and for investors, it is also easy to get in and out of cryptocurrency investments. However, the government's regulations on stable coins and the reserve requirements to support them make them difficult to maintain.
Many thanks to @yohan2on for this informative lecture.
Hi @inmylife
Thanks for attending the 7th -Crypto course on stable coins and for your effort in doing the given homework task.
Feedback
Fairly done. More effort in your research work. The other thing is that you also need to learn to fully reference your work. For instance, this is what you would have done to this phrase in your article.
Homework task
5
Thank you professor for your insightful comment, I will surely do a better jib next time and give full reference to the sources.
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