Crypto Academy Week 7 Homework Post for @yohan2on//PAXOS Standard (PAX)
PAXOS Standard (PAX)
Paxos Standard Token is based on Ethereum technology, it takes full advantage of the blockchain, such as stability and decentralized accounting. The Paxos platform itself was developed as a payment system and can be integrated into any scheme. PAX, as a project token, is a tool for fast and reliable transactions.
PAX is quite an interesting stablecoin. And this is largely due to the authors of this token. The developers themselves say:
Paxos is "the first regulated trust company with experience in blockchain. Paxos.com
Blockchain expertise is used to build settlement systems. Its main objective is to minimize the risks associated with the investment and to simplify financial settlements. PAX has been recognized by the New York State Department of Financial Services. And this regulator is very reluctant to issue licenses for blockchain projects. Therefore, immediately after the adoption and approval of PAX, investors became interested in this token.
As the most efficient alternative to the US national currency, PAX is a flexible system for instant money transactions. Unlike its competitors and predecessors, the Paxos platform acts as trustee of its clients' funds, under the protection of US law, providing the highest degree of protection. So the Paxos project is a kind of hybrid of a regulated trust and a DLT distributed ledger, allowing you to minimize the risks of financial transactions.
If you want to know more about the platform, check the WhitePaper of the project.
PAX stablecoin features
PAX is built on top of the Ethereum platform in accordance with the ERC-20 standard, allowing it to be stored in a variety of popular third-party wallets and making it easy to add to exchanges.
Thanks to this, PAX is an analog of the dollar, it is not tied to bank opening hours and can be used 24 hours a day, 7 days a week. In addition, transactions on the network are guaranteed to be fast and, in the case of banks, this can take several days.
Although there have been other similar stablecoins, PAX is the only one with total reserves in US dollars. in addition, there are no previous assets that have been issued by a financial institution.The Paxos team has been quite clear in raising the different base from which PAX works.
As we can see in the following capture taken from coinmarkecap. the PAX value is constant, between $ 0.99 to $ 1.04. Stable value that is guaranteed by the trust reserve.
All volume of PAX tokens launched on the market, which are held in banks with FDI insurance. The audit company Withum verifies monthly the presence of dollar reserves in these banks.
So far, 912 million tokens have been issued, with a trading volume of $ 51 million.
Currently, it occupies the place in the coinmarkecap list 92.
How to use and buy PAX
First, if you want to exchange dollars for PAX from its official website, you will need to register.
Once you have created an account and linked the Google Authenticator, you will be prompted to go to verification.
You will then get a list of countries where PAXOS offers its services. It should be noted that there are countries where user verification is not allowed.
Now, if you want to make exchanges to protect your assets, you can do it from the trading platform of your choice. PAX is currently listed on over 150 exchanges, OTC desks, and wallets.
Conclution
Based on the above data, we can conclude that the only obvious advantage is that it is issued by a financial institution controlled by the New York authorities. However, in this regard, several factors can influence the subsequent development of PAX. PAXOS is fully centralized and the issuer has the right to freeze the tokens if there is a reason. Which makes us think about the unpromising future of this stable coin, since its base of action does not correspond to the original concept of cryptocurrencies, conceived as a free and anonymous tool.
Hi
Thanks for attending the 7th -Crypto course on stable coins and for your effort in doing the given homework task.
Feedback
Very good work. Well done with your research on Paxos Standard.
Homework task
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