Stablecoin : New Kid On Blockchain

By Author: Block chain council
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Do you know about the new kid on the Blockchain platform? If not, then you have landed on the right page. In this blog, we will discuss Stablecoin digital currency. Cryptocurrencies are often utilized to purchase services and goods globally. The popularity of stablecoin is increasing day by day. A Certified Blockchain Developer has a deep understanding and practical knowledge of blockchain and cryptocurrencies.

What is Stablecoin?

Stablecoin is a digital currency and it is quite different from other cryptocurrencies. It is a new class of virtual currency. The main goal of stablecoin is to reduce price volatility through several approaches such as connecting price to commodities and fiat currencies. Most of the stablecoin currencies are fixed at ratio 1:1. Stablecoin virtual currency holds the advantages of cryptos such as wallets, security, transparency, quick transactions, privacy, immutability, and much more. A blockchain certification will provide you an insight into the domain.

Categories of Stablecoin cryptocurrency
There are four major types of Stablecoin. These types are listed as below:

1. Fiat ...
... Collateralized:
Fiat collateralized consists of fiat currencies such as EUR, USD, and GBP. For each and every Stablecoin currency, there is a real currency in a bank account. These types of stablecoins have a simple structure. It is also very easy to understand. Some examples of fiat collateralized digital currencies are such as Tether, TrueUSD, Candy, LBXPeg and many more. Currently, TrueUSD is the second most favoured stablecoins. The first most favoured stablecoin currency is Tether. Tether is known as the leader of stablecoins.

2. Commodity Collateralized Stablecoins:
These types of currencies are backed by interchangeable assets like metal and gold. Some examples of commodity collateralized digital currencies are Tiberius Coin also known as TCX, Digix Gold also known as DGX, and SwissReal Coin also known as SRC.

3. Non-Collateralized:
As the name indicates, these types of stablecoins are not backed by any assets. The non-collateralized stablecoins utilized an algorithm approach to manage the supply of stablecoin. This process is called as seignorage shares. This is one of the most independent and decentralized classes of stable coin virtual currency. However, this type requires a constant amount of growth to be successful in the market. Basis is one of the examples of non-collateralized stablecoin with an algorithm central bank.

4. Crypto Collateralized Stablecoins:
Crypto collateralized are backed by other digital currencies. In this stablecoin, everything is managed on blockchain technology. These are decentralized stablecoins that permit every process to be even more transparent and secure. In crypto collateralized stablecoin, there is no one to control and manage your funds. Dai is one of the most popular examples of crypto collateralized digital currency.

Conclusion

This new type of cryptocurrency brings its own set of uniqueness. Stablecoin cryptocurrencies contrast with other virtual currencies such as bitcoin. Stablecoins have capability for business and users to utilize digital currencies without any risks.
To get instant updates about Stablecoin cryptocurrency and to explore more about Blockchain professional certifications, you can visit our website named Blockchain Council.

Blockchain Council is an authoritative group of subject experts and enthusiasts who are evangelizing the Blockchain Research and Development, Use Cases and Products and Knowledge for a better world. Blockchain technology is more than just a technology, which is emerging rapidly with a vast scope in the future. Blockchain acts as a financial network, software, distributed ledger, etc. Owing to this multitude of benefits and features, companies are now shifting their centralized and traditional working system to this trending and futuristic technology “Blockchain”. Blockchain council creates an environment and raises awareness among businesses, enterprises, developers, and society by educating them in the Blockchain space. We are a private de-facto organization working individually and proliferating Blockchain technology globally. Visit here for more details@https://www.blockchain-council.org/