RINO - A multi-signature based enterprise wallet, free for first year of use. RINO is the only enterprise wallet for Monero that has multi-signature security. Designed for teams and organizations, RINO provides features such as spending limits and four-eye approvals. Monero is the number one privacy-focused cryptocurrency in the world. While Bitcoin and Ethereum reveal every transaction to the world, Monero’s unique cryptography provides the privacy that traditional pre-crypto finance takes for granted. Businesses do not, in general, want…
What is a Stablecoin?
A stablecoin is a cryptocurrency designed to minimize the price volatility common among other cryptocurrencies. The value of a stablecoin is pegged to a stable asset, such as a fiat currency (e.g., US dollar) or a commodity (e.g., gold). This means that the value of the stablecoin should remain relatively stable and not fluctuate significantly as the price of other cryptocurrencies can.
There are several ways that stablecoins can be implemented. One common method is to use a “smart contract” on a blockchain platform like Ethereum or BNB Chain to hold a reserve of the stable asset that the stablecoin is pegged to. The smart contract can then be used to issue and redeem stablecoins based on the value of the reserve asset. For example, suppose a stablecoin is pegged to the US dollar. In that case, the smart contract could issue stablecoins to users in exchange for US dollars and redeem stablecoins for US dollars when users wish to exchange their stablecoins back into a more stable asset.
Another method for implementing stablecoins is to use a “central bank” model, where a central authority (such as a company or organization) is responsible for issuing and redeeming the stablecoin. This central authority holds a reserve of the stable asset that the stablecoin is pegged to and issues and redeems the stablecoin based on the value of this reserve.
Types of Stablecoins
Several types of stablecoins can be categorized based on how they are pegged to a stable asset and how they are issued and redeemed:
- Fiat-collateralized stablecoins: These stablecoins are pegged to a fiat currency (such as the US dollar) and are backed by a reserve of the fiat currency held by a central authority (such as a bank). The central authority can issue and redeem them in exchange for fiat currency.
- Commodity-collateralized stablecoins: These stablecoins are pegged to a commodity (such as gold or silver) and are backed by a reserve of the commodity held by a central authority. They can be issued and redeemed by the central authority in exchange for the commodity.
- Cryptocurrency-collateralized stablecoins: These stablecoins are pegged to a cryptocurrency (such as Bitcoin or Ethereum) and are backed by a reserve of the cryptocurrency held by a smart contract. The smart contract can issue and redeem them in exchange for cryptocurrency.
- Non-collateralized stablecoins: These stablecoins are not directly pegged to any specific asset but are designed to maintain their value through economic incentives and algorithmically managed supply. Examples include seigniorage-style stablecoins and decentralized stablecoins.
The type of stablecoin best suited for a particular use case will depend on the specific needs and goals of the user.
The Risks of Using StableCoins
There are a few risks to consider when using stablecoins:
- Counterparty risk: If you are using a stablecoin issued by a central authority (such as a company or organization), there is a risk that the issuer will not honor its obligation to redeem the stablecoin for the stable asset that it is pegged to. This could happen if the issuer becomes insolvent or stops honoring redemptions for another reason.
- Volatility risk: Even though stablecoins are designed to minimize price volatility, there is still some risk that the value of the stablecoin may fluctuate slightly relative to the stable asset it is pegged to. This could be due to changes in the demand for the stablecoin or changes in the value of the stable asset itself.
- Regulatory risk: Depending on the jurisdiction in which you are using stablecoins, there may be regulatory risks to consider. For example, some governments may consider stablecoins to be securities, which could subject them to additional regulations.
- Security risk: As with any cryptocurrency, there is a risk of hacking or other security breaches that could result in the loss of your stablecoins. Using secure wallet software and keeping your private keys safe is important to minimize this risk.
Popular Stablecoins
Some of the most popular stablecoins include:
- Tether (USDT): Tether is a stablecoin pegged to the US dollar and issued by Tether Limited. It is widely used as a means of exchange on cryptocurrency exchanges and is often used as a “bridge” between different cryptocurrencies.
- USDC: USDC is a stablecoin issued by Circle, a financial services company, pegged to the US dollar. It is built on the Ethereum blockchain and used by many cryptocurrency exchanges and businesses.
- Binance USD (BUSD): BUSD is a stablecoin issued by Binance, a popular cryptocurrency exchange pegged to the US dollar. It is used as a means of exchange on the Binance platform and is available on other platforms.
- Paxos Standard (PAX): PAX is a stablecoin issued by Paxos, a financial technology company, pegged to the US dollar. It is built on the Ethereum blockchain and used as a means of exchange on several cryptocurrency platforms.
- TrueUSD (TUSD): TUSD is a stablecoin issued by TrustToken, a financial technology company, pegged to the US dollar. It is built on the Ethereum blockchain and used as a means of exchange on several cryptocurrency platforms.
There are many other stablecoins in addition to these examples, and the popularity of different stablecoins can vary over time.
Algorithmic vs. Regular Stablecoins
Algorithmic stablecoins are a type of stablecoin that use algorithms and smart contracts to adjust the supply of the stablecoin to maintain its value relative to the stable asset it is pegged to. This is in contrast to regular stablecoins, which are issued and redeemed manually by a central authority (such as a company or organization) and do not use algorithms to adjust their supply automatically.
One advantage of algorithmic stablecoins is that they can potentially be more decentralized and less reliant on a central authority, which may make them more resistant to censorship or interference. However, they can also be more complex and require more technical expertise to understand and implement.
Regular stablecoins, on the other hand, are often simpler and easier to understand. Still, they rely on a central authority to issue and redeem them, which may make them more vulnerable to censorship or interference.
Btc
Bitcoin
$44.209
price
price
1.65286%
price change
The choice between using an algorithmic stablecoin or a regular stablecoin will depend on the specific needs and goals of the user.
Block Education
@BlockEducation
Block Education 
@BlockEducation
Are you tired of long boring cryptocurrency and blockchain guides? So do we! We make it easier for you to understand crypto/blockchain concepts with short explanations.
VIEW AUTHORMore author posts
An In-depth Guide to Altseason (Altcoin Season) in Crypto
Altseason, short for "Altcoin Season," is widely used within the cryptocurrency community. It describes a period where alternative cryptocurrencies (altcoins) significantly outperform Bitcoin regarding price growth. This guide will delve into the concept of altseason, its workings, triggers, and how to recognize when an altseason is underway. Understanding Altseason An altseason is characterized by a considerable surge in the price of altcoins. This is often driven by a shift of investment from Bitcoin, the leading cryptocurrency, into alternative coins like…
Block Education
@BlockEducation
@BlockEducation
6 months ago 
1.4 k views
What Are Paper Hands and Diamond Hands in Crypto?
Cryptocurrency trading is an exciting yet complex world filled with unique terminologies that can often confuse newcomers. Among the many phrases, you may have heard, "Paper Hands" and "Diamond Hands" are two of the most popular. This guide will help you understand what these terms mean and how they apply in the dynamic world of cryptocurrency trading. What are Paper Hands and Diamond Hands? Paper Hands and Diamond Hands are terms originating from the trading and investing communities and have…
Block Education
@BlockEducation
@BlockEducation
6 months ago 1.2 k views
Mainnet and Mainnet Swap Explained
Mainnet and mainnet swap are two key concepts in blockchain and cryptocurrencies. What is Mainnet? Mainnet, short for "main network," is the primary public blockchain of a cryptocurrency, where actual transactions occur in the distributed ledger. It's a fully developed blockchain platform where the functionality of sending and receiving digital currencies and other transactions is carried out on a distributed ledger. It is the live version of a blockchain where the value of the distributed ledger's tokens is real, and…
Block Education
@BlockEducation
@BlockEducation
6 months ago 754 views
Understanding the Genesis Block in Cryptocurrency
The Genesis block holds an iconic status as the starting point of the decentralized ledger. This introductory guide aims to shed light on the concept of the genesis block, its significance, and how it operates in the blockchain ecosystem. What is a Genesis Block? The genesis block, or block 0, is the first block in any blockchain. It is the foundation upon which all subsequent blocks are built, forming the blockchain. The genesis block is uniquely hardcoded into the blockchain…
Block Education
@BlockEducation
@BlockEducation
6 months ago 832 views
Editor's picks
Bitcoin Bull Run Is Underway for 100K in 2024 According to Crypto Execs
The prospect of Bitcoin reaching $100,000 by 2024 has been considerable discussion among cryptocurrency executives and analysts. Several factors underpin this anticipated bull run, including the potential approval of Bitcoin ETFs and the upcoming Bitcoin halving event in April 2024. Pascal Gauthier, CEO of Ledger, suggested that 2023 was a preparatory year for the cryptocurrency market, setting the stage for the anticipated bull run. He highlighted the likelihood of a spot ETF approval as a significant catalyst for this surge.…
Crypto Adventure
@CryptoAdventure
@CryptoAdventure
2 days ago 6 views
Lugano Accepts Bitcoin and Tether for Taxes
In a notable development for cryptocurrency adoption, Lugano, a city in Switzerland, has introduced Bitcoin (BTC) and Tether (USDT) as acceptable forms of payment for various municipal services, including taxes. This move is a part of the city's broader initiative, known as "Plan B," aimed at integrating Bitcoin technology into the city's financial infrastructure. Making payments with these cryptocurrencies has been streamlined for simplicity and efficiency. Residents and businesses in Lugano can now settle any municipal invoice using BTC or…
Crypto Adventure
@CryptoAdventure
@CryptoAdventure
2 days ago 28 views
Rowan Energy: Green Energy Meets Blockchain – An Exclusive Interview with CEO and Founder David Duckworth
In a world increasingly focused on sustainable solutions, Rowan Energy, led by founder David Duckworth, is making significant strides at the intersection of renewable energy and blockchain technology. We sat down with David to explore the motivations, technology, and aspirations shaping this innovative UK-based company. What inspired you to create Rowan Energy, and how does your vision for the company align with the current needs of the renewable energy sector? The whole business started at my kitchen table in 2018. …
2 days ago 25 views
Coinbase Rolls Out Money Transfers via Social Media
Coinbase, a leading cryptocurrency exchange in the U.S., has introduced a groundbreaking service allowing users to transfer money via popular social media and messaging platforms. This innovative feature is integrated into the Coinbase Wallet, streamlining the process of global money transfers. The key highlight of this service is its simplicity and convenience. Users can send money through any platform that supports link sharing, including widely-used messaging apps like WhatsApp, iMessage, Telegram, and social media platforms such as Facebook, Snapchat, TikTok,…
Crypto Adventure
@CryptoAdventure
@CryptoAdventure
2 days ago 11 views
How to track crypto – Best apps
Cryptocurrency has revolutionized the financial world, offering a unique blend of security, decentralization, and growth potential. As the crypto market expands, tracking your investments and staying informed becomes crucial. This article delves into the best apps for tracking cryptocurrencies, ensuring you stay on top of your digital assets. CoinGecko Features: Extensive Cryptocurrency Coverage: CoinGecko tracks real-time prices for over 10,000 cryptocurrencies, offering a broad market view. Comprehensive Data Access: Provides information on market capitalization, trading volume, and other essential data…
Crypto Adventure
@CryptoAdventure
@CryptoAdventure
2 days ago 15 views
The Quest for Better On- and Off-Ramps in Web3
As we witness the impressive growth and evolution of the cryptocurrency market, we've come to an essential realization: our journey towards widespread Web3 adoption is still unfolding, with much ground yet to cover. The DeFi sector, once a niche component of the broader business world, has now taken a significant leap forward. The numbers speak volumes: over 15,000 decentralized applications (DApps), twice as many NFT collections, and more than 50 chains are now active, according to DappRadar. Yet, these impressive…
1 week ago 42 views
The Tokenomics behind Sonorus – Earning SNS by holding a DJ Node
Sonorus is a Web3 platform seeking to change the future of the digital music industry and reward artists and music lovers. It uses a decentralized music voting system, TrendFi, enabling fans to earn by supporting their favorite songs while helping musicians gain the rewards and recognition they deserve. The platform operates on the Binance Smart Chain, offering transparent, engagement-driven monetization. Like most blockchain-based ecosystems, Sonorus uses digital tokens to fuel operations and ensure its growing community has a common medium…
Crypto Adventure
@CryptoAdventure
@CryptoAdventure
3 weeks ago 193 views
What Will Happen to Crypto in 2024?
Cryptocurrency has become a hot topic in recent years, with digital assets like Bitcoin and Ethereum gaining immense popularity. As we look towards the future, many wonder what lies ahead for crypto in the year 2024. In this article, we will explore the current state of cryptocurrency, predict its future trajectory, and examine the impact of technology and economics on this rapidly evolving sector. Understanding the Current State of Cryptocurrency The rise of cryptocurrency has been nothing short of remarkable.…
Crypto Adventure
@CryptoAdventure
@CryptoAdventure
4 weeks ago 341 views
What are the Web3 wallets?
In today's digital age, the concept of Web3 wallets has gained significant attention. But what exactly are these wallets, and why are they important in the digital world? Understanding the Concept of Web3 Wallets Definition and Function of Web3 Wallets Web3 wallets, also known as decentralized wallets or blockchain wallets, are digital wallets that allow users to store, manage, and interact with cryptocurrencies and other digital assets. Unlike traditional wallets, which are physical objects used to store cash and cards,…
Crypto Adventure
@CryptoAdventure
@CryptoAdventure
4 weeks ago 187 views