Hi follow steemians, welcome to a new week of beginner's course, am happy to be privilege to participate on your (@awesononso) beginner's course having gone through your lecture post,indeed it was really educative, having got me more into the world of crypto. Thank you prof. @awesononso for the well explanatory and clarity lectures, i will be expressing my understanding on this course base on the course questions below.

Question

1. Explain why Stability is important in Digital currencies.

2. Do you think CBDCs would be good in the future? Weigh the pros and cons in your own understanding and state your position.

3. Explain in your own words how Rebase Tokens work. Give an illustration.

4. Go to the https://www.ampleforth.org/dashboard/. Check the necessary parameters and calculate the rebase %. What else can you find on the page?

5. Trade some tokens for at least $15 worth of USDT on Binance and explain your steps. (Give necessary Screenshots of the transaction).

6. Transfer the USDT to another wallet with the Tron Network. From the transaction, what are the pros of the stablecoin over fiat money transactions? (Give Screenshot of the transaction).

Explain why Stability is important in Digital currencies.

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One of the importance issues that has been affecting digital currencies or cryptocurrency is the measure of how market price changes(how asset price increase or decrease) in other words the volatility of the cryptocurrency market, this has really been an headache for the digital currency investors which makes them vulnerable to asset risk and lost.
For example, i needed to powerup so i proceed in buying 1 sbd for #3000 to later convert to steem,having calculated the price of sbd to a steem which will suit my powering up i bought, a moment later, the price of sbd fluctuated to #2700 per sbd, by this automatically it a loss for me as that won't amount to the price of steem i intended to by cause of the price fluctuation in sbd.

This unstability of digital currency was a major setback using digital currency untill stability of digital currency came in. It was used to tackle price volatility which was the nature of digital currency.

Some of the importance of stability in digital currency is that , stable currency can be use to store values cause there are immune to volatility.

Business and company will be very interested in receiving stable digital currency as payment cause the won't stand a chance of unnecessary asset risk and lost.

Lastly, the will be used as medium of exchange just like the fiat currency and will encourage spending them instead of storing to wait for when it will rise for it to favour the holder.

Do you think CBDCs would be good in the future? Weigh the pros and cons in your own understanding and state your position.

For me, i will take a yes though it kind of complicated predicting the future. But it will be a nice idea considering the pros and cons of it before taking the judgment.

Pros

• It will serve as a legal substitute for cash:- with the implementation of CBDCs, citizens are ensure of having easy access to another legal way of making payments if cash is not available in the moment. CBDC is always legally recognized as a suitable method of payment and it one of the method that will bring about cashless policy.

• It aid fast,cheap and better payment:-
  Unlike the fiat money CBDCs will pave the way for a better,safety and effectiveness payment method which will reduce cost and make payment smart and easy as possible.

• Financial inclusion:- this is one of the important aspect of CBDCS for citizens that dont have bank account, CBDC can help in improving the access to digital currency payment without banking system in other words,with CBDCs you can access digital payment tool with a lower cost without going through bank stress.

• Brings about smart and safe value storage:- unlike the banking system CBDCs store value on a cheap way, as it does not consider storage cost,transportation and going about stress, when trying to store asset..it safer in terms of circulation and distribution of asset which minimize fraud in the payment system.

Cons

• less privacy:- due to the fact that CBDCs is govern by the government or a particular central authority the will be less or no privacy when compared to normal cryptocurrency, it will be easily monitored, manipulate and tampered(freeze) on without the a proper acceptance of the owner incase of suspicion transaction. in other words, There is less privacy in a way that all transactions will be monitored by the central authority.

• Currency geographical acceptance limitation:- unlike the normal digital currency which is acceptable worldwide CBDCs is only accepted in the country were it is issued out. With this it might be worthless if holder travel out of the currency issued country.

There is a popular saying that everything has an advantage and disadvantages,so CBDCs shouldn't be a discouragement when taking about implementing it, looking at the cons side of it. The pros of CBDCs is more overwhelming when compared to cons with this i think CBDCs will be better idea for the future.

Explain in your own words how Rebase Tokens work. Give an illustration.

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Instead of a token price to undergo price volatility the token supply will change, this process is called the rebase.

A rebase token is built in a way of circulating token supply according to the token's fluctuation.

Looking at how this rebase works, i will do an illustration using a rebase token itself call Ampleforth.

Firstly, a rebase operation happens routinely.
Has i said using the rebase token called ampleforth were rebase operation happens every 24hrs to aim a price of $1, if the price goes beyond the aim or targeted price of $1, the circulating supply will expand during the period of rebase by this it will reduce the value of the said token( ampleforth) and if the price of ampleforth do not reach that target of $1 the current supply at the period of rebase will increase the value of the token.

Go to the https://www.ampleforth.org/dashboard/. Check the necessary parameters and calculate the rebase %. What else can you find on the page?

First, i visit Ampleforth site with my browser

After checking my necessary parameters on the image above, there are as follows.

Oracle rate=$1.021
Price target =$1.061

After setting out my parameters I now proceed to calculating my rebase % using the formular below.

Rebase% = [(oracle rate - price target)/price target]×100]/10

Using my parameters to calculate
=[(1.021-1.061)/1.061]×100]/10
=[-0.04/1.061]×100]/10
=(0.038×100)/10
=3.8/10
=0.38%

Apart from the oracle rate and price target i can see the countdown to the next rebase, I can also see the graph for the rebase,I can see the circulating and total price of the token, lastly i can see the supply and the market cap of the token.

Trade some tokens for at least $15 worth of USDT on Binance and explain your steps. (Give necessary Screenshots of the transaction)

Step1

I login to my binance app, when it open i will proceed to clicking on trade at the down part of the app. The point where i indicated below.

step2

Immediately i click on the market, a search bar will appear, then i put the name of the assest am about trading with. In this case am using ETH/USDT
I will input ETH then a list of ETH paired with other asset will appear, i will then click on ETH/USDT
After i click on ETH/USDT, a page of trading information about ETH/USDT will open, then i place a sell order for ETH to USDT, i use 0.0045 ETH to buy 16.4 USDT as seen below.

step3

And finally after waiting for my trade to fill, it was successful you can see the proof of transactions below..

Transfer the USDT to another wallet with the Tron Network. From the transaction, what are the pros of the stablecoin over fiat money tra
nsactions? (Give Screenshot of the transaction).

Here I will be showing steps on how to transfer USDT from binance to TRON wallet.
Below are the steps.

Step1

First, I visited my tron wallet, then check for TRON USDT wallet recieving code. I then copy the code out.

Step 2

After copying the code i return to my binance wallet, click on wallet has seen below.
Then the deposit and withdrawal option will pop up which i will click on withdrawal.

Step3

After clicking on withdrawal this page below will pop up requesting to fill some necessary info. Like the address i copied and also setting the network am about using for the transaction.
As requested I then paste the USDT wallet address i copied, then set my transaction network to Tron network.

Step4

After filling all the necessary info i proceed by clicking withdrawal a page pop up requesting for the verification of my just concluded data input, i now confirm by clicking confirm

#Step6
Immediately my request transaction was submitted as seen below.

And finally here is my redrawal or transaction details.

Using stablecoin, during the cost of this transaction i notice that the transaction was more faster and easier compared to fiat money transaction.
following the step of the transaction i could notice that alot of security measures where use to avoid lost of asset and wrong transaction, the transaction issuers were not showed which made the transaction private as a result it brings about privacy in transaction.
All this were prons i observe during my stable coin transaction compared to fiat money transaction.

conclusion

Stablecoin are cryptocurrencies were their prices are fix exchange rate with a certain currency or a certain value.
Stablecoin has been a good measure to tackle price volatility which has been a major issues to the traders, it means you can transfer them anytime and day without the price fluctuating,
though it doesn't really encourage trading method but it really useful to trader in terms of storing asset.
Once again thank you prof. @awesononso for the well explainatory and clarify lecture.you really took time to explain each and every part of this lesson to my understanding.

Thanks.