Hey Steemit:

Hope you all are good. Before starting homework, i am thankful to professor @yohan2on for teaching about Stable coins. It is very helpful for me to know more about Stable coins and their features and functions.

Homework Task:

Homework task: Write about any one of the following Stable coins

USD Coin (USDC)
TrueUSD (TUSD)
Paxos Standard (PAX)
Digix (DGX)

Today, i am going to write about TrueUSD Stable Coin which is one of the option of Homework task given by @yohan2on.

What is TrueUSD:

TrueUSD is a ERC-20 token which was designed on Ethereum blockchain. It has a value similar to USD. 1 TrueUSD is equal to 1 USD. TrueUSD provides a secure platform for user to saved there money without any profit or lost and used there money for trading through digital currency. This coin has a pegged value. It depends on fiat currency, if the USD value go down then TureUSD value also go down.

TrustToken is the company who managed Truecurrencies. It was founded by UC Berkeley. This company gives a secure platform to user. The best thing about TrueUSD is that this company audits were held on regular basis.

Third party companies are used to purchased or redeemed TrueUSD. There is a study that transaction through third party is not secured. But in TrueUSD case, Trust companies plays a third party role and gives a proper secured platform to users.

How TUSD Works:

TUSD works with the use of Ethereum Smart Contracts which is Ethereum blockchain. There are two main function of this smart contracts.

• Issuing a TUSD
• Redeem a TUSD

Issuing a TUSD:
User can purchased a TUSD easily through TrustToken platform with the use of smart contracts. User can send there crypto wallet information to Trust company then that comapny process user wallet information and send them to TrueUSD web or app then that app issue TrueUSD coins corresponding to USD.

Redeem a TUSD:
Similarly if a user wants to redeem his TUSD token then TrustToken platform use the smart contracts and provides a USD to user equal to the amount ofTUSD redeemed.

TUSD is Safe or Not:

TrueUSD is the most safest stablecoin running in the market. It has the fully-backed nature of the cryptocurrency which provides a transparency.
Some reasons which prove that TUSD is safe are,

Audits:
Accounting firm Cohen & Comany audits the TrustToken in every monthly which proved that TUSD is fully collateralized.

Licensed:
TrustToken is licensed in the US and TUSD is known as the first regulated stablecoin which was issued in US.

Security:
TrustToken provide a secured platform for user because it uses a smart contracts and it have audited three times by three different security firms.

TUSD Pros:

• It is the first coin which are regulated and licensed in the US.
• No controversies regarding on 1:1 ratio of vlaues.
• No exchanging and transaction fees are charged by TrustToken company.

TUSD Cons:

• If TruskToken company feels that user broke the terms and conditions then they freezed user account.
• Corruptions and money laundering can easily done by stable coins which are not good.
• The competitor of TUSD is very big in market i.e. Tether.

Conclusion:

In my point of view, TrueUSD will grow in future and will gain people trust because of there daily audits which is not done by Tether. There is a conflict in 1:1 ratio of Ether but in TrueUSD, it is clear TrustToken fully backed the TUSD by the US dollars on a 1:1 ratio. I think people will like this stablecoin because this coin provides a secured platform.

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That's it for this homework task which is given by @yohan2on. This article is plagiarism free. Hope you all should gain some knowledge through this article of mine.

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Cc:-
@yohan2on
@steemitblog
@steemcurator01
@steemcurator02