USD Coin Explained
Introduction to USD Coin
What problem does USD Coin solve?
Name: USD Coin
After the crypto bull-run of 2017 and the havoc wrecked on the crypto-markets in early 2018, the crypto-community turned their attention towards the high-volatility issue of the crypto-currencies. It was high-time something was done to ensure that the markets are not manipulated in any way and to ensure that some mechanism is there to safeguard it against the rapid fluctuations in the crypto-markets. As a result, the concept of stablecoins gained momentum. A USD Coin tries to amalgamate the benefits of the cryptocurrencies with the stability of the fiat currencies. It lets its users transfer money quickly all around the world while maintaining its value to $1
CryptoCoin.News: Goldman Sachs Launches A New Crypto – The Circle USD Coin
What is USD Coin
What does the cryptocurrency USD Coin actually do?
The actual product is a crypto-token whose value is backed by the US Dollar. It is already being offered on different exchanges, including Coinbase. This doesnâ€™t mean that the tokens are just created out of oneâ€™s own will. Rather, every USD token that is released into the markets must have a US dollar stored in the reserves at the back end. The reserves must be looked after by the issuing companies and audited frequently. This process is known as tokenization
Who is behind USD Coin
What team is working to make USD Coin successful?
USD Coin has some leading cryptocurrency giants backing it. It is a joint-venture between Coinbase and Circle.
Talking about the underlying development, it is using the stablecoin framework designed and developed by Centre.