INTRODUCTION

Its a great pleasure to learn from prof. @awesononso once again. And to proof that i fully understood this lecture i will be answering this assignment.

Question 1

EXPLAIN WHY STABILITY IS IMPORTANT IN DIGITAL CURRENCIES

For a truth, the merits of stability of digital currencies can never be taken for granted neither can it be overemphasized.

Simply put, stability entails a state of body where it can't be changed easily. It doesn't entail rigidity but it cannot be influenced easily to change.
Currency is a legal tender which we use for our day to day transactions. We all know fiat currency is under the control of a central government of the country where it is been used but cryptocurrency/ digital currency is void of control of a central body or government because of its decentralized state.

Whenever you open your binance account you will always receive a warning message telling you about the risk of cryptocurrencies due to high volatility which makes it easy to gain or loose money within a blink, thus, this is the main reason people run away from crypto trading and investment.

I think, what brings in stability into the crypto market is the level of demand ad supply which fully affects the market. i.e the more people that enters or leave the market, the more the market grows or depreciate.

Most people, in a quest to be on a safe side lock up their coins in USDT because it is stable. That is to say, if cryptocurrency have a stable price in the market, there are minimum or zero chances for people to loose their money at such will cause more people pick interest in digital currency at such growing the market.

If a digital currency is stable, it will have the trust of the masses since it assumes the same value as the fiat currency.
Finally, the merit of cryptocurrency stability points at adding values and gaining trust of the masses leading to more people entering the market hence the growth of the market.
The above reply is based on my minute knowledge about digital currency.

QUESTION 2

DO YOU THINK CBDCs WILL BE GOOD IN THE FUTURE?? WEIGH THE PROS AND CONS IN YOUR OWN UNDERSTANDING.

CBDCs means "central banks digital currencies".
CBDC sounds new to me but with this lecture i understand CBDCs to be the same thing as fiat currency of a country safe the fact that it is
digitally oriented. In Nigeria we use Naira and the CBDC in Nigeria is eNaira this currency is available online but still have the same value as the fiat currency.

Advantages and disadvantages of CBDCs

Advantages of CBDCs

• For the fact that it is a digital currency, there will be a minimal transaction fee as compared to the physical bank charges.

• Safety: since CBDCs are digital currencies there will be low rate of robbery, in the sense that nobody knows how much you carry unlike the fiat currency that attract armed robbers.

• Transactions will be made easy for people that lives in rural area where there are no physical banks.

• Overwriting the place of any intermediate like bankers CBDC will ensure privacy.

• It will bring about the growth of the country since everything is going digital globally.

DISADVANTAGES OF CBDCs

• Loss of job: if CBDCs should be adopted in full, many people will loose their job because there will be no need for an intermediate.

• It won't give room for decentralization even though it is a digital currency.

• It will lead to competition among banks bringing about loss of customers.

• It will be difficult for people in rural area who lacks the knowledge of the internet to make use of CBDCs.

Although there are many disadvantages of CBDCs but for the fact that the advantages are greatee than the disadvantages i think and believe that adapting CBDCs is quite necessary.

QUESTION 3

EXPLAIN IN YOUR OWN WORDS HOW REBASE TOKENS WORK, GIVE ILLUSTRATION.

REBASE token can be regarded to as a stable coin holding to the fact that it has a price target. i.e it doesn't work like other coins.

In some stable coins like USDT and BUSD, an increase in the price of an asset brings about an increase in the value of the coin and vice versa but in REBASE token, the reverse is the case.

REBASE mechanism causes an increase in the amount of coin in a user's wallet whenever there is an increase of price in the market but the value remains unchanged and when there i a fall in the market the amount of coin reduces.

For example, if I have 100 pieces of a given REBASE token worth $30, when an increase occurs in the market, the quantity of my token will increase to lets say twice my initial token giving 200 pieced of REBASE tokens but the value still remains $30 and when there is a fall in the market, there will be a reduction in the ammount of coin i have to lets say half so remaining 50 pieces of the REBASE token at that same price of $30.

In conclusion, it have been explained that inREBASE tokens only the quantity is affected during market movement while the value remains unchanged.

QUESTION 4

GO TO https://www.ampleforth.org/dashboard/ CHECK THE NECEASARY PARAMETERS AND CALCULATE THE REBASE%. WHAT ELSE CAN YOU FIND ON THE PAGE?

After navigating the Ampleforth website, I derived the following parameters and I will be using them to derive the rebase%.

** Oracle rate is 1.003**
** 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
Therefore , rebase % = -0.55%

Going further i was able to check out for more things in the page which includes:

The price

The supply

The market cap

The next phase

QUESTION 5

TRADE SOME TOKEN FOR AT LEAST $15 WORTH OF USDT ON BINANCE AND EXPLAIN YOUR STEPS (GIVE NECESAARY SCREENSHOTS OF YOUR TRANSACTION.)

I will be making use of 8.0969 ADA worth 17.352 USDT

Procedures
Firstly, I logged into my binance wallet.

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

Clicking on ADA it will take me to ADA/USDT pair , when the window is opened, i filled the amount of ADA i wish to sell and clicked on sell and immediately i got my USDT on my portfolio.

Below are the screenshots of the transaction

account before transaction.

carrying out transaction

Wallet after transaction.

QUESTION 6

**TRANSFER THE USDT TO ANOTHER WALLET WITH THE TRON NETWORK.
FROM THE TRANSACTION, WHAT ARE THE PROS OF THE STABLE COIN OVER FIAT MONEY TRANSACTIONS? (GIVE SCREENSHOT OF THE TRANSACTION)

In fulfilment of the assignment, I will be sending the USDT using the (TRC20) which is the Tron network form my BINANCE wallet to my trust wallet.

Firstly, I opened my trust wallet and copied my USDT address for tron network.
Secondly, I opened my BINANCE, went to my spot wallet , clicked on USDT and then go to withdrawal.

When i opened the withdrawal page i saw networks like TRC10, TRC20, ERC20, BEP2 and the rest, so i went for TRC20 and clicked on it.
The next page required me to fill out a form which include the address I'm transferring to, the quantity of USDT i want to transfer.
After filling, i had to confirm the transaction by requesting and imputing codes sent to my mobile number and to my gmail, and after that the transaction was sealed.

Below are screenshots showing what i explained above

this is my trust wallet before the transaction.

Here i copied my my USDT address from trust wallet

here, i filled in the required details for this transaction

Confirmatory notification from binance

This is my trust wallet after a successful transaction

From this transaction, below are some of my observations i.e some PROS of stable coins over fiat currency.

• From my transaction, i confirmed that there is a low transaction fee (1 USDT) unlike fiat currency transaction which is higher.

• High level of security: during the transaction, i was asked to put in codes sent to my gmail and to my mobile number to confirm that I'm the true owner of the account thereby making it impossible for hackers to withdraw coin from my wallet.

• Speed of transaction: I received my USDT in my trust wallet in less than 1 minute, unlike fiat currency transactions that take much time due to delay in network.

CONCLUSION

Prof. @awesononso, I must say you are awesome and it is of great joy and pleasure that I'm a participant of this lecture.
I've learnt that market volatility is the main reason people shy away from cryptocurrency and i strongly believe that people will be more interested in digital currency if it by any means becomes stable.

I must say, this is my first time of hearing about REBASE tokens and I will take it as a project topic to study.

CC;
@awesononso
@steemblog
@reminiscence