Cryptocurrency users can surely transfer funds to each other easily, but they are still dependant on fiat currencies when buying day-to-day items granted that very few places take cryptocurrencies. Part of the crypto world has become conventional to the concept of growing alongside the legacy financial system, a method that may view blockchain technology integrated with the present financial standard cooperatively, rather than overcoming it. With this in mind, various projects in crypto have set out to design products created with the existence of fiat currencies in mind. It is the case with stablecoins.
A stablecoin is a blockchain-based cryptocurrency whose worth is pegged to that of a more stable asset like gold, oil, or fiat currencies. As such, stablecoins remains the same value as their underlying asset, alleviating the high volatility currently present in the Bptocurrency industry.
What is TrueUSD (TUSD)?
TrueUSD is a new project that has developed and launched a stablecoin, proposes a separate strategy to trade with both of these issues and, while the project is young, TrueUSD seems to endeavor towards a higher figure as its name alludes to.
US Dollars in the TrueUSD system are kept in the bank accounts of many trust companies that have contracted escrow agreements, rather than in a bank account managed by a single company. According to TrueUSD, the contents of related bank accounts are issued every day and are subjected to monthly audits. This method of storing USD guarantees that the user can have higher trust in TrueUSD considered as the collateralized holdings are not centralized in any single entity, but preferably distributed throughout multiple fiduciary partners.
Technology and Features
Regarding the technology, TrueUSD executes a framework that assures they are not in management when issuing tokens. While the USDT tokens are distributed on the Bitcoin blockchain through the Omni Protocol, TrueUSD (TUSD) tokens are based on the Ethereum blockchain, enabling for a more advanced issuance mechanism.
If someone wants to get TrueUSD through the online application, they will require to pass a KYC/AML check. Once that’s finished, they can transfer USD to one of TrueUSD’s trust company partners. Once the trust company establishes the funds, their API will direct the TrueUSD smart contract to distribute tokens on a 1 to 1 ratio and to transfer them to the Ethereum address connected with the account at hand.
Once transferred to the wallet, the tokens can be carried to a friend or used as payment, merging the benefits of fiat (stability and trust) with those of cryptocurrencies, decreased fees and transfer times. The user can also claim real US Dollars by giving the TUSD tokens back to the smart contract address, which will inform the trust company, and begin a bank transfer to the account user.
The system above proves that the issuance occurs in a decentralized environment that uses multiple APIs, which guarantees the handling of the underlying fiat currency is higher to previous alternatives.
The TrueUSD (TUSD)
TrueUSD is considered as a USD-backed ERC20 stablecoin that is sufficiently collateralized, legally protected, and transparently supported by third-party attestations. TrueUSD utilizes multiple escrow accounts to lessen counterparty uncertainty and to give token-holders with legal protections against misappropriation. TrueUSD is the first asset token created on the TrustToken platform.
How To Use TUSD
TrueUSD has been produced with some use cases in mind including manageable financial services, trading, and online commerce. Although a very different infrastructure can be created around the TUSD token and other upcoming TrueCoins, the possibly strongest use case is as a replacement or option to USD on cryptocurrency markets.
Who can utilize TrueUSD?
They’ve created the alpha version to address the urgent requirements of crypto exchanges, crypto traders, and financial businesses.
Crypto Traders and Exchanges:
Cryptocurrency traders require a trustworthy stablecoin to hedge upon volatility and access crypto markets without immediate exposure to BTC/ETH.
Everyday people and businesses can experience the advantages of digital currencies, faster transaction speed than ACH, global influence without the volatility of Bitcoin. Now users can repay a salary, take out a loan, or get coffee with a cryptocurrency, allowing a new economy of cryptocurrency financial applications.
Some developing markets are more reliant on cryptocurrencies for trade.
Financial companies that require to get into crypto, but have right reservations against setting, e.g. $100M into a new algorithmic stablecoin versus $100M of “legally-enforceable certificates of ownership of the US dollar.”
The Core Team
The team comprises from Stanford, UC Berkeley, Palantir, and Google; its supporters include Founders Fund Angel, Stanford-StartX, and Blocktower Capital. The TrueUSD team has produced a legal framework for collateralized cryptocurrencies in partnership with WilmerHale and White & Case and has a system of fiduciary, yielding, and banking partners.
Alchemint is known as a hybrid-model decentralized stablecoin issuing platform that is based on NEO blockchain. It allows any individual or any institution to provide stablecoins by collateralizing assets by smart contracts and cross-chain technology. Stablecoin has all the unique features of the cryptocurrency while sustaining the price stability. The holders can conveniently send it to others or utilize it as a payment means for goods and services. Stablecoin is a necessary medium for digital trading assets in exchanges.
The requirement for a practical stablecoin framework continues in the crypto space as one of the principal barriers to mass appropriation. Generally utilized excellent resources, for example, BTC, ETH, and NEO don’t work well as methods for installment due to their instability.
Endeavoring to address this issue head-on, Alchemint will at first issue a stablecoin pegged to USD, collateralized by NEO, and upheld by an arrangement of financial shields to guarantee esteem strength.
Value Proposal of Alchemint
Alchemint offers a chance to contract NEO property to get to value steadiness. At first, focusing on trades, the group imagines a stablecoin that will be utilized for p2p installments, resource securitization and internet business.
The Alchemint guide isn’t just constrained to the production of a USD-pegged stablecoin (SDUSD), yet besides incorporates plans for other fiat-pegged monetary standards, for example, SDRMB (Chinese Yuan) and SDEUR (Euro) to scale the biological community. All stablecoins issued on the stage will at first be collateralized by NEO.
Decentralization is a key part of Alchemint rather than different stablecoins like USDT. Alchemint will not be controlled by any association nor require standard distribution of saved resources.
As a central part of this decentralized approach, anybody can issue a stablecoin by selling NEO resources (or other advanced resources endorsed by the Alchemint Governance Committee). Alchemint alludes to this approach as “decentralized collateralization.”
The Alchemint group has architected the stablecoin framework in light of the accompanying three resources:
Stablecoin (ex. SDUSD) – a fiat-pegged digital currency issued on the stage that is collateralized by NEO. The issuance and value adjustment are encouraged by the Smart Assets Reserve (SAR).
Smart Asset Reserve (SAR) – a smart contract which empowers the collateralization of NEO to issue fiat-pegged monetary forms. At the point when a client wishes to issue SDUSD, NEO is sent to a SAR to contract. The SAR will assess the estimation of the NEO and issue a relating measure of SDUSD to the client’s record.
SDT – when a client recovers collateralized NEO, he or she pays a commission charge in SDT. The measure of SDT depends on the amount NEO is held in the SAR. SDT used to assert NEO will be signed all the while. Along these lines, the measure of SDT will diminish after some time, which could prompt expansion in esteem because of developing use and selection. As the estimation of SDT rises, the measure of SDT required to reclaim NEO from a SAR will diminish. Holders of SDT will likewise take an interest in the administration of the hazard administration framework behind Alchemint.
Team Behind Alchemint
President Zhang Ting is the Founder of Alchemint. Past to Alchemint, Ting established and filled in as CEO of Honeymoney, a network money related stage, which was later gained. She additionally filled in as COO at Jili Wealth p2p, a loaning stage in China like Lending Club.
Qi Feng is CTO of Alchemint. Feng has more than ten long stretches of involvement in the IT and fund segments. He beforehand filled in as CTO with Harmonia Capital. Different encounters incorporate filling in as General Manager of E-business at Sinosoft and as Senior Consultant for Neusoft Group’s Financial Division.
Zhang Wei is CPO of Alchemint. Wei has involvement with subsidiaries speculation administration and hazard control. For a long time, he filled in as Product Manager and Investment Advisor at one of China’s biggest state-possessed banks.
Prominent counselors to the undertaking incorporate Founder of Hayek Capital, Pauline Xu, Founder of Juxiu Capital, Chen Yu, and the NEO Council.
Opportunities and Strengths of Alchemint
Alchemint is the sole stablecoin venture based on NEO. As far as advance points of reference, Alchemint has conclusively settled a promising organization with Switcheo for use on the DEX. From a more massive scale level viewpoint, Alchemint speaks to a critical advance toward the headway of the NEO Smart Economy.
As the NEO community develops, Alchemint could discover utilize not directly on trades but rather as solid methods for encouraging installments on Dapps. As the token measurements show, the measure of SDT will decrease as it is spent to reclaim sold NEO. If Alchemint remains the sole stablecoin on the NEO stage, the supported development of use inside the biological community could bring about a considerable interest for SDT.
Threats and Weaknesses of Alchemint
The outcome of stablecoins by and large keeps on demonstrating the complexity and of the numerous coins that have been propelled, time still can’t seem to explain the practicality of any one framework. In this sense, Alchemint is a welcome and truly necessary endeavor at making a stable crypto resource.
What stays untested is the heap of situations that could play out as the request, dissemination, and estimation of every advantage inside the biological system vacillates. At this beginning time of item initiation, it is judicious to make a test model of different financial situations for open assessment to encourage more trust in the venture.
A few voices inside the crypto space stay distrustful of the possibility that stablecoins are even doable over the long haul. By adding a level of vulnerability to the duty, the financial model and shield instruments fundamental Alchemint stay an unknown area in the crypto space and can just genuinely be demonstrated through an entirely conveyed, functional item.
In any case, the guarantee of progress speaks to a phenomenal chance to grab the heap of utilization cases for which unpredictable monetary standards stay unrealistic.
From the development of a p2p lending platform to long ranges of involvement in the keeping money division, the group behind the Alchemint ICO is all-around qualified for the job that needs to be done. An essential part of the NEO Smart Economy depends on their capacity to succeed, and to this agreement, it is a recognized conviction that the NEO Council intend the venture.
The idea of money has developed over thousands of years, and yet there is still room for advancement. The promise of digital assets, global fluidity, frictionless, democratized has not been completely realized. Notwithstanding the proliferation of projects, billions of dollars of resources and years consumed in development, even the leading digital asset, Bitcoin, is still bothered by significant issues that limit its use.
Blockchain technology has introduced exceptional innovations distributed ledgers, decentralized trust, smart contracts, etc. yet has not changed on the basic principles that define money, nor has it created the trust of the public required to achieve popular adoption. Paxos Standard is intended to leverage the innovations of blockchain technology to enhance the function of money while being supported by a traditional infrastructure that can guarantee it is trustworthy. As a regulated trust company and financial organization distributing a token backed by U.S. dollar deposits, Paxos can give a token that merges the trust and stability of fiat currency with the use and immediacy of digital assets.
What is Paxos Standard Token (PAX)?
Paxos Standard, or known as PAX, is a token that is supported one-to-one by USD deposits and accessible through Paxos. PAX is accessible one-to-one in exchange for USD and redeemable one-to-one for USD. Upon redemption, PAX tokens are instantly removed from the supply; PAX is only in existence when the corresponding dollars are in keeping.
As a trust company established under New York State banking law and controlled by the New York State Department of Financial Services, Paxos works under governing principles of the highest standard. Unlike a bank, which utilizes client funds for its benefit and funding, a trust company serves as a fiduciary that custodies users deposits and hence will always hold customer funds wholly segregated. All dollar deposits are kept in FDIC-insured U.S. banks or being collateralized by U.S. government treasuries, and customer dollars are all valued for as customer property.
In other words, Paxos takes dollar deposits and distributes Paxos Standard tokens which can be exchanged, transacted and transferred quickly and without friction. Presently, the economy of digital assets is fluid, global and quick, yet faces significant roadblocks when trading in digital assets and fiat because of the inherent obstructions in the traditional banking system. Paxos Standard provides users the convenience of keeping their liquidity in digital assets while still maintaining stability.
Key Features and Advantages
● Paxos Standard tokens are distributed and redeemed by Paxos. As a trust, Paxos circulates PAX directly with no need for any middlemen. It allows more effective operations including shorter redemption windows (PAX can be redeemed for dollars within one business day) and lower charges.
● PAX can be sent and received by anyone with an Ethereum wallet. All activities work according to the rules of a smart contract on the Ethereum platform following the ERC-20 protocol. Because of this smart contract, transactions exclude human error, and the system functions only as programmed.
● PAX is accessible to be listed on exchanges around the world. Since the dollar supports it, it can be utilized as a proxy for learning the value of the dollar as contrasted to other digital currencies.
● The Paxos exchange, itBit, enable users to cash out of their holdings directly and directly to PAX rather than cash if they want. itBit also trades PAX OTC.
● PAX is available 24/7 to aid settlement against any asset that includes crypto, security, and asset tokens or for payments. Unlike fiat, which is only accessible to settle trades during bank business hours, PAX can move anyplace, anytime.
● Built on the Ethereum blockchain, PAX is a programmable token that can participate in the larger global community of tokens, helping create a global platform for programmable money with stability.
Paxos Standard tokens are intentionally designed with simplicity in mind. In exchange for USD 1, 1 PAX is circulated. Similarly, on the redemption side, 1 PAX can be redeemed for USD 1. The exchange will always be one-to-one. Because of this simplicity, the whole system can be written as a basic smart contract, ensuring that it operates under these rules in a programmed way.
As a smart contract on the Ethereum blockchain, Paxos Standard follows the ERC-20 protocol. Ethereum is a decentralized blockchain-based ledger that supports smart contracts; with over 100,000 smart contracts, Ethereum is the most widely-used digital asset platform. A smart contract is a combination of data and programmed procedures for working with that data. Both the integrity of the information and the fidelity of procedure executions are ensured by the distributed consensus protocol of the underlying Ethereum blockchain.
ERC-20 tokens are Ethereum smart contracts that follow a standard protocol for representing custom “tokens” on the blockchain. Specifically, the contract must declare a basic token characteristics, track the total number of tokens, track a token balance for each Ethereum address, and permit address owners to transfer portions of their balance to other addresses.
The benefits of an ERC-20 contract on Ethereum are:
● The security and availability offered by one of the largest global blockchain networks (Ethereum)
● Broad adoption by digital asset stakeholders such as exchanges, digital asset organizations, institutional investors and retail users
● A relatively simple and familiar smart-contract pattern
● Publicly verifiable token supply, account balances and on-chain procedures
Paxos is delighted to share that KuCoin, presently, one of the world’s leading crypto exchanges, has announced its listing to Paxos Standard token with ticker symbol PAX. The disclosure of the listing of PAX on KuCoin implies a growing and immediate demand for a regulated stablecoin.
Paxos issues and settles PAX tokens one-to-one against U.S. dollars, providing holders a digital equivalent of the dollar that can be transferred nearly immediately 24/7. Stablecoins are engaging to active traders who can utilize it to cash out of digital assets more swiftly than if they were to change to dollars. By using PAX, traders can be assured that they are using a coin that is controlled and supported by U.S. dollars held at U.S.-domiciled FDIC-insured banks. Paxos Standard, managed by the New York State Department of Financial Services, is the sole digital asset to be recognized and overseen by a regulator.
Deposits and withdrawals for PAX are open with three pairs BTC/PAX, ETH/PAX, and USDT/PAX. Users will also enjoy 99% off the trading fees on PAX trading pairs starting from Oct. 15, 22:00 to Oct. 22, 22:00, 2018 (UTC+8).
All transactions are accessible utilizing KuCoin’s mobile apps or direct to their website at www.kucoin.com.
Circle USDC or the USD Coin is a simple web app for customers to purchase and utilize USDC fiat tokens for payments and trading in the crypto ecosystem. USDC gives a full reserve US dollar-backed stablecoin and has an open source fiat stablecoin framework created by CENTRE.
The Circle USDC service is open to retail and institutional customers globally. Customers must provide complete KYC information. As it is based on the ERC-20 token standard, USDC can be utilized on any exchange that holds it and with any ERC-20 compatible virtual wallet.
The circle may impose a small charge for redeeming USDC for USD bank transfers. Trading platforms that support USDC charge fees for trading within tokens and crypto assets. CENTRE network members may want to monetize fiat stablecoin tokens in various ways. However, the central basis of this framework is to lower if not completely eradicate traditional fees and time delays connected with a driving value around the world.
USDC is distributed using the CENTRE open source framework and membership system, and it will become accessible as an open framework that various companies can participate as issuers. That implies that other FIs can become USDC issuers, and that customers will be capable of purchasing and redeeming USDC tokens in an open and interoperable ecosystem of FIs that involves crypto exchanges, consumer digital wallet companies, and banks. It includes a membership governance model for issuers that ensures that they meet technical, operational, regulatory, compliance and audit requirements.
Circle’s USDC gateway implements a regulated on and off ramp that operates inside the framework of US money transmission laws, with overlooking from the US Treasury department, and US state banking supervisors.
Circle’s USDC gateway also gives a seamless, smooth and secure to use the experience that continues funding with any bank account.