Steemit Crypto Academy | Homework 7 @yohan2on|USDC|
We have examined the issue of stable cryptocurrencies from the past week. We investigated in detail what stable cryptocurrencies do. In this lesson, we will deal with this issue from a different perspective.
Stable cryptocurrencies have been created to protect us from excessive price fluctuations. Tether is the first stable crypto currency to be produced. Then, dozens of stable crypto coins were produced. USDC is also among the stable cryptocurrencies. It has a central structure, but all transactions are transparent.
USD Coin
USD Coin (USDC) is produced by a group called Center and is a cryptocurrency whose price is pegged to 1 US dollar. From time to time, there are deviations of 1 dollar. In the period when other cryptocurrencies soared, the USDC price fell slightly, it was seen to drop to $ 0.92 in the past, but March 12, 2020 was a very bad day for cryptocurrencies. It was able to hit the highest level of $ 1.12 before. I think it was manipulated, probably because there was not enough USDC in the market at that time.
USDC is an open source cryptocurrency project backed by Circle and Coinbase, based in the United States. It is developed by the group / organization called Center. The Center is responsible for the management of the USDC. For each USDC the Center releases, 1 US dollar is kept in a private bank account. Thus, it was aimed to fix the USDC price to 1 USD and it was achieved.
USD Coin Working Principle
We mentioned that USDC Coin is supported by the Center consortium. The Center is managed by companies that are constantly subject to certain audits. Customers who want to use USDC and spend in trade must pass a certain approval. Make sure that Centre's customers using USDC are not money laundering.
It is produced by the Center as an ERC-20 based coin on the Ethereum network. It runs on the Ethereum network. Preparations are being made to work on other networks. It can be transferred between Erc-20 based wallets.
How and In Which Wallets Is USD Coin (USDC) Stored?
I mentioned that USD Coin uses the ethereum network. They will be migrating to other networks in the near future. They have to do this both to get rid of ethereum network dependency and to free their customers from high transaction fees. For now, you can store USD Coin in wallets that connect to the ethereum network and support ERC20-based tokens. There are wallets that support devices such as online, desktop, and mobile.
If you choose to have your Ethereum wallet on your smartphone, you can use mobile wallets. Wallets such as Exodus, AtomicWallet, TrustWallet are suitable for this. To convey my own experience, TrustWallet, supported by Binance, stands out as the most suitable of these wallets.