My home-work Post for yohan2on, week7 // writing about USD coin (USDC). Written by me @kingcent // (powered up 100%)
Hello steemians welcome once again to my blog I'm very excited to write about my home-work Post for werk7 courtesy of professor @yohan2on.
Professor you are a very good man thank you very much for reviewing my previous post let me use this medium to thank @steemcurator01, and @steemcurator02, for their vital support regarding this particular one.i really appreciate.
professor @yohan2on
steemit crypto Academy week7= stable-coin part2
What is USD coin??
It simply means US dollar backed coin, it is more-less fully centralized it was launched in the year 2018, by then I'm done with secondary School though it's basically based on Etherium ERC-20 standard.
It makes it undistructible with most major different wallets and the custodian services tracing bact to the month of October 2021 last year to be precise stable coin became the second largest market capitalization round the globe.
Stable coin
A stable coin is a crypto currency as we all know that plunged to a single assets, or a full assets. the specific assets can be like other crypto currencies Fiat= physical currency or even commodities such as gold, Just a solitary example.
In this pa Case here the USDC is plunged to a solitary assets the USD what this implies is that for every 1 USD, the very much active user of it holds 1US dollar as collateral.
How is the USDC pegged to dollar
A USDC is created when an individual buys a token, an approval is used for every US dollar received, thereby making the user to apply an E-RC-20 smart contract in order to create an equal amount of USDC probably it will be further sent to the designated user.
It's then held in reserve held as a collateral the supposed buyer has the USDC which is equiva to physical currency in US dollar this guarantee's that USDC is backed by one US dollar at the ratio of 1:1.
How To buy USDC
USDC token can either be purchased directly from the issuer, or they can be further traded on exchange via luno App when you acquire USDC through an exchange you issue directly from the third party, however you have to still own the token and you will always be entitled to further redeem it from the issuer.
Differences in USDC from other stable coins
We should try as much as possible to get familiar with the issuer directly, but the USDC has a huge fidf from other stable coins such as Tether in this further represented by a regulated financial institutions with high standards of co-operate governance.
The full transparency regularly audited will surely ensure that reserves are held on a ratio of 1:1, with the physical currency. This is the snap-shot of the price of USDC.
Differ between Bitcoin and the USD coin
As we all know that #bitcoin was developed as a digital Decentralized crypto currency, perhaps the main aim was paying for goods and services (ie as a means of exchange) it was evolved since it was created in 2018 till today it is also use for the variety of other purposes as well including a value store which looks similar to Gold.
USD coin on the other hand basically was created as a means in order to put the US dollar on the block-chain , the main purpose of this is the ability to be moved anywhere in the world within the interval of minutes.
They also brings stability to cryptocurrencies , there are so many differences regarding the two cryptocurrencies significantly on how they where created and how they tend to be maintained.
Brief origin of the USD coin
Officially the USD coin was launched was launched on 26th September 2018, firstly stable-coin to be printed and guided by the members of organization of the centre consumption.
A centralized membership-based frame work and total governance schedule the centre consumption was officially founded by coin- base a US based cryptocurrency exchanges in a circular block-chain financial services and payment company.
Circularly it was founded in 2013 by the congregate personnel Jeremy Allaire and Sean Neville initially they reached over $135 million over Friday round from a list of investors. Coin base was founded in 2012, by brium Amstrong .
Thank you very much for reading through I really appreciate, @kingcent cares, let me use this medium to thank @yohan2on, you are really a good person I must admit. Let me use this medium to thank @steemcurator01, @steemcurstor02, you guys are too much God bless you in advance
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Cc:@yohan2on
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Hi @kingcent
Thanks for attending the 7th -Crypto course on stable coins and for your effort in doing the given homework task.
Feedback
This is good work. Well done with your research on USDC.
Homework task
7.5
Thank you very much for visiting professor @yohan2on I really appreciate I will keep on posting #good quality content.