Given that they are almost still very new technologies yet, we can say that there is ample opportunity for innovations in the field of blockchain and crypto currency.
Recently, there has been a thrilling development in the world of crypto currency and blockchain. The two giant names of the crypto currency industry, Coinbase and Circle, came together to create a stable crypto currency. Stablecoin, called USD Coin (USDC), works on the Ethereum network.
Although it added USDC to the Coinbase platform last week, Circle has been trading since last month.
Aside from all of this, the excitement about USDC is that the crypto currency has the effect on the future of our financial systems.
What is USD Coin?
Circle and Coinbase’s USD Coin is slightly different from other crypto currencies.
Stabilcoin refers to a type of crypto currency, which means less price volatility. To achieve this, the formed stabilcoin must be fixed to a currency such as US dollar, euro or commodity such as gold. One stabilcoin may even be fixed to another crypto currency.
The USD Coin is fixed at a 1: 1 ratio to the US dollar. So a USDC is equal to 1 US dollar.
However, investors need to know that the USD Coin is not designed to replace the US dollar and should be careful about it. This is because using USD Coins indirectly means trading in US dollars under crypto currency and blockchain.
In addition, USD Coin, an ERC-20 token, works in harmony with most decentralized applications in the Ethereum network.
First Step of a New Financial System
Circle and Coinbase’s USD Coin is a remarkable and quite big step for a few reasons.
First, USDC is the first stabilcoin to be processed on Coinbase’s platform. Since Coinbase has so far only been a platform for crypto currency transactions, it is important to pay attention to such radical changes when new forms such as stabilcoins are added.
Second, the USD Coin can help blockchain developers and technology companies as it is easier to program. For example, private keys of stabilcoin can be used to make it easier for a program to send and receive USDC via a blockchain.
Third, the presence of the USD Coin gives us another reason to focus on the blockchain and crypto money market. USDC is one of the many new stabilcoins this year. Since crypto and blockchain are still new and growing, players in the industry are constantly looking for new and innovative ways. This keeps the market alive.
Fourth, the USD Coin helps to ease doubts about crypto currency volatility and transaction transparency. Against the US dollar, USDC is less volatile, making the market more attractive for investors.
Finally, the USDC brings many advantages, such as low transfer fees, short processing times and easy storage.
The vision of Circle and Coinbase is based on the creation of an open, international financial system where people can deposit and send money from anywhere in the world without high transfer fees and transaction times.
USD Coin is also a product of this target.
USD Coin, crypto currency and blockchain technology is being used together with a reputable currency is showing us that a new financial system has begun.