Introduction

Good morning great steemian... What an awesome lecture from a Great prof @awesononso. Very educative and interesting lecture.

QUESTION NO 1
EXPLAIN WHY STABILITY IS IMPORTANT IN DIGITAL CURRENCIES.

Over the years, cryptocrrency and blockchain technology have increase to a point where their potential is disrupting the traditional financial economy including other sectors.
Cryptocurrencies are famous for it's volatility and their stability is in short term thus a traders find it difficult to predict when a coin will rise or fall ( they might worth billion of dollars today and tomorrow their value will not be up to hundred dollars) Thus stability was introduce into the crypto space to understand the need and benefit of stability or the role stability plays in the crypto Space.

What is stability

In a lay man language, stability is ability of something to be at a particular point , at a given period of time for instance when a bucket of water is kept in a particular spot it means the bucket is stable but that doesn't mean it can't be relocated or influenced by an external force thus anything in a stable state can still be influenced.

The difference between Local Currency is that local Currency is physical cash we use in our daily transaction that is generally accepted in a community or country, it's being controlled by a central body or government while digital currency is any form of payment that exist in electronic form, it's not physical like local currency and it's decentralized in nature thus nobody controls it.

Important of Stability in Digital Currency

Assuming bitcoin (BTCUSD) is the most popular cryptocurrency is suffering from high volatility in valuations. Ie. Bitcoin rise from around $4,000 during coronavirus pandemic in March 2020 to almost $65,000 in April 2021, before rolling back to $30,000 in June 2021. We can see cryptocurrency moving in excess ineither direction within a short period of time.

This type of short period volatility will make popular cryptocurrencies unsuitable so their need for stability for public use.

Basically, a currency as a medium of monetary exchange and it also act as a means of storing monetary value so its value is meant to remain stable over long period of time but when the price is flutuating users tends to refrain from adopting it or using as a means of exchange because are not sure or guarantee of its purchasing power. So crypto coin is meant to maintain its purchasing power to encourage use of crypto for exchange thus stability tends to provide solution.

QUESTION NO 2
DO YOU THINK CBDCs WOULD BE GOOD IN THE FUTURE?? WEIGH THE PROS AND CONS IN YOUR OWN UNDERSTANDING.

CBDCs simply means Central Bank Digital Currencies.

It's obvious that the world is in the middle of technological revolution and almost everything is changing from analogue to digital form. And in the context of money digital representative is necessary and money is moving from analogue to digital form.for instance, Nigeria uses Naira as their local currency and the central bank digital currency is eNaira which will help to facilitate online service and I strongly believe CBCDs will also help to boast the world economy.

Pros and Cons of CBDCs

PROS OF CBDCs:

• The cost of transaction fees is very low when compared to local currency charges or physical bank charges.

• For instance their are some areas where bank can not be easily located but with CBCDs coming into existence the accessibity of Currencies very easy for people in such location which would facilitate the their transactions.

• CBDCs saves time and energy.

• CBDCs will also help in country Development

• It ensure maximum privacy because there will no need for third party to facilitate transaction. Thus no bankers that stand between the user and the banking system.

THE CONS OF CBDCs:

• It is centralized because it is under the control of central bank which means it's still under the influence of some group of Person that controls the affair of the system.

• Still their is no middle there would be less job opportunity and so many persons will loose their jib..

• For some individual who doesn't knows how the system work would find it difficult operating it .

• Their would be increase in internet crime.

Like I said earlier CBCDs will contribute grately to world Development .

QUESTION NO 3
EXPLAIN IN YOUR OWN WORDS HOW REBASE TOKENS WORKS, GIVE ILLUSTRATION.

A Rebase is a token built to authomatically adjust the circulating token price when it increases or decreases .

A REBASE token is also known a price elastic token. Rebase Token works like a stable coin in the sense that they has a particular target price . It can also be called price elastic token. Rebase token does not behave or take the features of other coins.

The expansion and contraction of Rebase token so that it can correct the flutuation without changing value in the users wallet is what we call a Rebase mechanism. Let's take USDT for instance,when the price of a asset increases, the value of the coins will automatically increase too and when their is decrease in price of an asset,the value will all decrease too but in case of REBASE token,reverse is the case.

The REBASE mechanism makes token to be in a situation that when the price of an assest increases in the market, what would actually increase is the number of coin or the amount of coin in the users wallet and the price of the coin will not change thus the price will not change. And also when the price of an assest decreases in the market what would reduce is the amount of coin in a users wallet not the value.

For Example,let's say sonia440 have 100 pieces of a REBASE token that worth is $10, when there is an increase in the market the number of tokens in sonia440 wallet will increase to 150 depending on the market increase but with the increase in the number of token in sonia440 wallet, the value of the coin will not change and also when there is a fall in the market, what will reduce is the number of coin and not the value.

In summary REBASE token is a token which increase and decrease in quantity in users wallet when the market price rise or fall the token value still remains unchanged.

QUESTION NO 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?

After going through Ampleforth website , below the following parameters is got and I will be using them to find the rebase(%)

Observation

The Oracle rate is (1.003)
The Price target is (1.061)

To calculate the rebase % :
Rebase % = {[( Oracle rate - price target) / price target ] × 100} / 10
= {[( 1.003-1.061) / 1.061 × 100}/ 10
={[( -0.058)/1.061]× 100}/ 10
= {[(- 0.054)] × 100} /10
= (-5.5)/10
=-0.55
:. rebase (%) = -0.55%

Extra information gotten from site

The price

The supply

The next phase

The market cap.

QUESTION NO 5
TRADE SOME TOKENS FOR AT LEAST $15 WORTH OF USDT ON BINANCE AND EXPLAIN YOUR STEPS. (GIVE NECESSARY SCREENSHOTS OF THE TRANSACTION)

I will be transacting 8.0969 worth of ADA which is equivalent to 17.352 USDT.

Steps involved

• I logged into my binance but I don't have to login

-Secondly i opened my spot wallet, i selected ADA because i will prefer to trade it.

• I selected ADA because is the coin I want to to transact and a dialogue box will appear where I input the amount I want to transact

• I clicked on sell and USDT on my portfolio (Ada have been converted to USDT)

Screenshot of the transactions

• Details of the account before transaction.

• Details of the account while I was transacting Ada for Usdt

• Details of the account after transition was completed.

QUESTION NO 6.
TRANSFER THE USDT TO ANOTHER WALLET WITH THE TRON NETWORK. FROM THE TRANSACTION, WHAT'S ARE THE PROS OF THE STABLE COIN OVER FIAT MONEY TRANSACTIONS? (GIVE SCREENSHOT OF THE TRANSACTION

According to the home task, I will be transacting USDT using the (TRC20) and I will be using my binance wallet.

• I log into my trust wallet and copied my USDT address for tron network.

-I opened my binance account which is login already,

• I located my spot wallet , then clicked on USDT and I clicked on withdrawal.

• I selected TRC20 .

• A dialogue box pop up where I filled in the address I copied, the amount if Usdt that I want to transfer, memo etc.

• After input, I confirm my transaction

• A dialogue box where I will verify the transaction using the code and that was sent to my phone number and my e-mail address.

• Transaction was successful.

Below are image of the above transaction.

• Trust wallet account before transaction was done.

• This is when I copied the USDT address from my trust wallet

• This is where I filled in the transaction details on my binance account

• This is where I confirmed all the details on my binance account

• My trust wallet account after a successful transaction in my binance account.

PROS of stable coins over the fiat currency.

• The speed or time taken for the transaction was very short, the transaction was completed at a very short period of time.

• I noticed that the transaction fee was very low compare to fiat currency.

• I notice that I was to verify the transaction twice using my email and phone thus their is high level of security compare to fiat currency.

<h1Conclusion

What an interesting topic, With the rate at which digitalization in world digital currencies is increasing and the role it plays and cryptocurrency will not be left behind.
This is actually the first of me coming in coming contact with rebase token and with what I have learnt stability will soon have a place in crypto world.

Thank you Prof. @awesononso for wonderful lecture

CC:
@awesononso