Crypto Academy Week 7 - Homework Post for @yohan2on on Stable Coin USD (USDC) by @rubinabano

Hello friends ,
First of all I'm really thankful to the professors of SteemitCryptoAcademy specially @yohan2on .

What is Stable coin

Cryptocurrencies is plagued with price instability. This is the reason why it is difficult for most people to embrace it including our centralised banking system. The cryptocurrency market is highly volatile, hence, adopting it as a means of exchange for everyday transaction is very difficult

They are there to help cryptomarket to stabilise and thus, benefit the players in the market like the traders, investors, vendors, and others. A lot of projects have been invented that promotes stable coins and a lot of stable coins are also available. One of them is the TrueUSD thereby being an attraction for more people to troop into the cryoto world. Stable coins are mostly backed with less volatile assets like gold or USD.

Tusd

src
A TrueUSD (TUSD) is a stablecoin that peg their value to the U.S. dollar at 1:1. TUSD was created and issued by TrustToken and the peg and reserves are also maintained by TrustToken.
The TrueUSD is an Etheruem-based token, it's the first stablecoin that was fully regulated and transparent.

How Does TrueUSD (TUSD) Work?

The working system of TrueUSD is the same as other ERC-20 tokens which work using smart contracts on the Ethereum blockchain. When someone buys TUSD tokens directly from the TrustToken platform with fiat currency, namely American Dollar, the smart contract underlying the platform will automatically generate and issue an amount of TUSD that corresponds to the amount of fiat currency they want to exchange for TUSD and automatically supply the TUSD tokens in circulation Will increase.

Conversely, if someone will exchange his TUSD token on the TrustToken platform, the smart contract will automatically take the exchanged token and will delete it permanently from the circulating TUSD supply and automatically the circulating TUSD token supply will decrease.

USDC are used to:

• Make short cryptocurrencies easy to buy in the future and also making the user not to cash out so fast.
• Help to avoid traditional financial tools and institutions.
• helps to avoid hyperinflation usually for people living in countries like Turkey or Venezuela.
• Enables users send money instantly, worldwide, safely and at low cost;

How is USDC different from other stablecoins?

We encourage you to familiarize yourself with the issuer directly, however USDC differs from other stablecoins such as Tether in that the issuers state that they are regulated financial institutions with high corporate management standards, which are obliged to provide full transparency and are audited regularly. This guarantees that the deposits held have a 1: 1 ratio of their fiat currency equivalent. All USDC issuers are required to report their USD holdings, which is then published by Grant Thornton LLP accounting firm on a monthly basis. These monthly reports are available online for anyone who wants to read them.

conclusion

The main controversy usually a stablecoin face is the ratio of USD reserve in response of USDC. The most popular stable coin, USDT, has already experienced this allegation. They are still paying for it. But the best thing about USDC is , It has not faced any types of allegation yet. Thats a pretty good move for a stablecoin.