Something you should know about stablecoin
The development history of stablecoin is just a short of years. It is originally originated from the USDT issued by Tether Limited, which was established by Bitfinex in 2014.
So what is called stablecoin? Stablecoin is a cryptocurrency with stable value. Because the price of the cryptocurrency fluctuates greatly, the crypto market needs some different cryptocurrency to avoid huge losses. That’s why stablecoin exists. It is also an exchange medium to link the crypto world and real legal currency world.
The importance of stablecoin
Stablecoins are the guarantee that we can make full use of blockchain technology. Any application requires lower fluctuations in the blockchain (such as consumer loans) and cannot be priced 10–20% per day.
As more and more countries forbid legal currency transactions, investors need a medium that can replace the legal currency for value anchoring, and measure the value of cryptocurrency. At this respect, the concept of stablecoin is more focused on anchoring with a certain legal currency or real assets.
On the ideal level, the current legal currency system issued by the state is decision-making centralized. The issuance of money is completely charged by the state. The political instability, economic crisis, and government policy errors of a country may lead to the value of the legal currency unstable.
Financial market transactions also require the price of cryptocurrency to remain stable. The implement of valuable stable cryptocurrency will make it safer and faster.
Since there are lots of stablecoins on the market now. what stablecoin is worth holding?
Tether USD(USDT)
Tether USD, short for USDT, belongs to a new kind of cryptocurrencies called stablecoin that aims to keep cryptocurrency valuations stable. USDT is issued on the Bitcoin blockchain via the Omni Layer Protocol. Omni is arguably the first 2.0 currency on the market based on the Bitcoin blockchain. Therefore, the USDT transaction confirmation and other parameters are consistent with Bitcoin. USDT can be transferred, stored, spent, just like bitcoins or any other cryptocurrency
Unlike most cryptocurrencies, Tether guarantees that usdt is always tied to the value of the US dollar, which is always valued at a 1-to-1 ratio with the US dollar. And claims that every USDT token issued, they will be backed by a US Dollars in their reserve account. Users can exchange USDT to USD for 1:1 redemption at any time.
EpayUSD(EUSD)
EUSD is an official stablecoin released by the first domestic international payment company named Epay. It combines the credibility and value stability of the US dollar. And Compatible with the ERC20 standard.it can be traded and transformed freely in any Ethereum network
In the Epay global remittance network, a complete landing scene for EUSD is designed, which can be not only used for users to deposit & withdraw, use, trade, etc but can be used as a margin of the exchanger or stored，circulated as a transaction currency. EUSD has an infinite future in the future blockchain and cross-board payment market.
DAI. In later December of 2017, the company Maker released their long-awaited system for a decentralized stablecoin named “Dai”. Dai is an Ethereum ERC20 token that is pegged to $1 USD — every Dai is worth $1, and will always be worth $1, regardless of how much Dai is in existence. There is no centralized authority like Tether that backs its value, and no traditional bank that backs each Dai with a real US dollar. There is nothing that can be shut down and no centralized authority that needs to be trusted. Dai lives entirely within the Ethereum blockchain using smart contracts.