Steemit Crypto Academy week 7: Stable coins - Part2

WHAT DOES THE TERM USDC MEAN

USD Coin otherwise known as USDC is a stable coin that just gain entrance not too long ago into the crypto currency msrket it is a relatively new stablecoin pegged to the US dollar. It was initiated and launched on the 26 of September, 2018, in a collaboration done with Coinbase and Circle.The USDC was created to serve as an alternative to the many other USD backed cryptocurrencies like TrueUSD (TUSD)or TETHER

The USD Coin is an initiative that is designed to tokenize US dollars and enhance the effective use of the dollar over the public blockchains and the internet as a whole. Aside thst the USDC tokens can be converted back to USD at will meaning it can be done anytime. The implementation of issuing and redeeming USDC tokens is garanteed with ERC-20 smart contract.

By bringing US dollars on board the blockchain ir gives room snd allows them move like the speed of light anywhere in the world in judt a matter of minutes, and it brings snd creat themuch-needed stability needed to cryptocurrencies. We outrightly say that it opens up new and promising opportunities for trading, risk-hedging, lending etc.

THE TEAM BEHIND USD COIN

The formation or initiation was developed by CENTRE in a collaboration that existed in form of a partnership with Circle and Coinbase.

The innovation and governing structure were developed by Centre, while Circle and Coinbase were the first issuers of USDC.

The company Circle was founded in the 2013 by two entrepreneurs known as Jeremy Allaire and Sean Neville.

This company or firm is an official Money Transmitter, that makes its company an open financial book. It is one that works within the confines of thetl federal laws and regulations. Before the USDC is issued, the equivalent amount of USD is deposited with or in the hands one of Circle’s verified and accredited partners. Consequently, all USDC tokens are put in check that is they are highly regarded, transparent and authentic. Circle is also as known the crypto startup backed up by Goldman Sachs.

THE FUNCTIONALITIES OF THE USDC

No currency is the world is printed out of thin air and that includes the USDC. Circle makes sure every USDC token has the backing of a single US dollar. The system of converting US dollars into USDC tokens can be referred to as tokenization.

For us to Tokenize theUSD into USDC there are three major processes or steps

1The USD is sent to the tokenns issuers bank account through the aid of the user

2An equivalent amount of USDC is created by the issuer through the uses or means of the USDC smart contract.

3 And then what has been newly minted that is the newly mined USDC are tendered to the user, while the substituted US dollars are kept in reserve.

But in thecase where the process is reversed:

1An equilvilent amount of the USD is given for the USDC token when the user sends a request to the USDC issuer for redemption.

1. The issuer in turn makes a request alerting the USDC company,so as to swap or get the tokens for the USD and remove or take away an amount equal to tokens that was removed.
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2. Then the issuer transfers the needed amount of USD from the reserves straight to the user’s account. The user then gets or receives the net amount that is equal to the one in the USDC tokens,after subtracting all incurred fees.

Unlike the other known stablecoin Tether (USDT), the USDC creators are obliged to tender complete transparency and work with a variety of financial authorities in other sustain and to maintain full reserves especially that which is equivalent to fiat currency.

The issuers in the USDC block chain are mandated or obliged to make constant reports on their holdings which will then be published, for easy access a display that shows a high level of transparency.

WHAT MAKES USDC UNIQUE

The USDC is among the most freshest and newest crypto currencies that has gain acculades in recent years. Although it is not the first or even the most popular US Dollar-backed coin it's uniqueness can not be downplayed. Although Tether was the most popular US DOLLAR BACKED COIN,but Its claim to have a real dollar stacked up in the bank for every Tether has put it under serious scrutiny in respect to the state of its finances by the New York Attorney. an investigation by the New York Attorney General has caused them to take back their assertion

This mellow drama gave rise ito other US Dollar-backed stablecoins that are more transparent in terms of funding and auditing processes. These includeTrue USD, Gemini dollar, Paxos, and US Dollar Coin (USDC).

Even though the USDC may not be as unique compared to the rest of its competitors, it still has its uniqueness and peculiar features

1Regulated

The USDC’s mother company is a registered Money Entity or Business in the United States. The significance of this is that it’s regulated by a government recognized agency known as the Financial Crimes Enforcement Network which combats money laundering. As a results of this it can be trusted, reliable and dependable since it is under checks that creats balance.

2Audited

Grant Thornton are the auditors of the USDC,who are one of the top 10 aditing cooperations in the world.

3Fast

With the speed of cryptocurrency transaction the USDC offers reliability and stability to the US Dollars eliminating the issues that exist in the transfer of the US DOLLARS to people.

WHAT CAN IT BE USED FOR

1It can be said that the USDC is traded on platforms like Poloniex and Coinbase, and on other top exchange platforms Huobi and Biniance.

It can also be used in various decentralized finance protocols. for instance you can deposit it in BlockFi, a company that grants interest for
depositing not only USDC but for other coins.

Thanks Prof for your input snd tutorship i really appreciate it.However i would like to bring to your notice my week 6 task which has not been curated,i would really appreciate it sir if you can kindly make out time from your busy schedule look into it. Thanks. Once more, please here is the link below

https://steemit.com/hive-108451/@samuelj/71ehzj-steemit-crypto-academy-understanding-decentralized-finance-part-2-topic-5

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