Hello Steemians, It is a new week in the Steemit crypto academy as we all are gaining a lot of knowledge about cryptocurrency technology. Today's lesson was delivered by crypto professor @yohan2on on Stable coin. This is a continuation of the previous season on stable coin. In this assignment, I will discuss the stable coin Paxos Standard (PAX).

Paxos Standard (PAX)

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Paxos was designed to bridge the gap and basic principles that characterise money that other cryptocurrencies hasn't addressed that have built distrust for cryptocurrency mass adoption. Paxos Standard aim at improving the function of money within blockchain technology by building an infrastructure that guarantees trustworthiness in investing in cryptocurrency. Paxos is a trusted financial institution regulated by the New York State Department of Financial Services. Paxos issues token that is backed by U.S dollar deposits which trust and stability of digital assets.

Paxos Standard(PAX) Token

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Paxos Standard (PAX) is an ERC-20 token built on the Ethereum platform which is backed by 1:1 to the USD deposits. This means that to every PAX token issue when a U.S dollar deposits made, a corresponding USD is backed up in the reserve. Paxos hold every dollar deposit in FDIC-insured U.S banks or the U.S government treasuries and these deposits are all accounted for as the investors' property. This ensures trust and transparency in digital assets.
Paxos Standard tokens can be traded in any exchange and can be transferred between users at ease. We all know the high volatility and fluidity of cryptocurrency, Paxos Standard protects users from losing their funds to the high volatility of digital assets by providing liquidity in digital assets while still maintaining the stability of their assets.
Paxos Standard possesses a better advantage over fiat in the sense that it is easier to exchange, maintains the same store of value and is fully regulated and supported by the New York Department of Financial Services. Aside from other stable coins, Paxos Standard is one of the stable coins that have shown a level of trust by constant auditing and burning of tokens exchanged for USD.

Key Features of Paxos Standard (PAX)

• PAX tokens are issued and redeemed by Paxos without the middleman. The elimination of middleman ensures efficient operations at a lower cost.
• PAX being an ERC-20 token built on Ethereum blockchain make it possible to be transacted across all Ethereum platform.
• PAX is available and can be traded on exchanges for other digital assets.
• PAX is very easy and efficient in facilitating payment of other fiat and digital currency. This feature is available 24/7 to bridge the gap of traditional fiat payments which takes place only during bank working hours.
• PAX token is backed by the U.S dollar in major Banks which is insured by the Federal Deposit Insurance Corporation and regulated by the New York Department of Financial Services.

Use Cases of PAX token

• PAX serves as a means of payment for other digital assets.
• PAX serves as a safe haven for investors against the volatility of digital assets. Users can easily convert to PAX which provides stability without incurring fees when converting to fiat.
• PAX can be used 24/7 for the settlement of assets with fiat currencies by financial institutions.

Technical overview of Paxos Standard

Paxos Standard is maintaining it's stable price of $1 with a market capital of $744.64 million. The circulating supply is 797.34 million which means that an equivalent of $797.34 million is backed up as a deposit in the Bank or Federal Reserve. Similarly, the token has reached an all-time high of $1.01 and an all-time low of $0.996 making Paxos Standard a safe haven for investors against digital assets volatility.

Exchanges where Paxos Standard can be traded

Paxos Standard was widely adopted by so many cryptocurrency exchanges and OTC desk because PAX offers immediate settlement of transactions and verified reserves. Similarly, it's wide adoption by exchanges is because PAX is a trusted stable coin among traders because of it's regulation and constant auditing by the Financial Services. Below in the picture are some of the exchanges where Paxos Standard can be traded.

Wallets where Paxos Standard can be stored

Paxos Standard being an ERC-20 token can be held in any Ethereum supported wallet. Below in the picture are some of the wallets that supports the Paxos Standard token.

Aside from all the features and benefits discussed about Paxos Standard in this post, the token posses some pitfalls of being centralised. Paxos standard being regulated means that the token can be frozen or confiscated in violation of any terms or fraudulent activities. Similarly, users are required to perform KYC verification before trading PAX in exchanges.

In conclusion, Paxos Standard has been widely adopted since its s invention as one of the stable coins that guarantee trust and protection of users assets. Paxos Standard posed to overtake USDT shortly in the sense that USDT isn't regulated and haven't been transparent. USDT claimed to be backed up by the U.S dollar in reserve of any USDT issued, but no audit has been carried out on that claim making users sceptical in using USDT. Paxos Standard has a great potential of being a popular stable in the future.

Note: The images without link are screenshots.

Thank you Professor @yohan2on for this amazing lesson

Best regards:
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