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Cryptocurrency is not a new term for a majority of us. With the entry of Bitcoins and its many alternatives, news of these digital currencies have been splashed all over the internet. Creating a completely innovative and unique way to carry out business, cryptocurrencies are a real catalyst in moving towards an entirely digital system that is modernistic.
There are certain reasons why investors hold back from investing in cryptocurrencies or entering the world of blockchain technology. Virtual currencies or cryptocurrencies are well-known for their fluctuating values. With rates that can change on a daily basis and drastically so, it does drive a little fear into investors.
Stablecoins come as a relief to investors who appreciate and welcome stability. They provide users with the following benefits:
- Decentralization
- Privacy
- Security
- Efficiency
- Stability
- Storing value
- Standardized price
The amalgamation of cryptocurrencies and fiat currencies is an answer from heaven for investors who are hesitant to join the blockchain universe. Stablecoins are not limited to a single type but have variants. The following are three:
Fiat collateralized stablecoins
They are,
- Backed by fiat currency
- In a ratio of 1:1
- They can also be backed by gold or oil whose value is measured in fiat currency
Crypto collateralized stablecoins
They are,
- Backed by cryptocurrencies
- In the ratio 2:1 (cryptocurrencies: stablecoins)
Non-collateralized stablecoins
- They are,
- Similar to the fiat system of working
- Built with smart contracts that increase or decrease supply based on the market
If you are looking for a Stablecoin Development Services Company in India, then Blockchain App Factory is the place to go. With experience in the field of blockchain since its very inception, they can really guide you with the process of building you a stablecoin that is functional and advanced. Check out their website right away!