A big digital shift has transformed the way people work, communicate, and even pay for goods. Companies or not even consumers prefer cash anymore, and this trend significantly paved for online or contactless payments through UPI. Now, a new, more secure, and globally recognized system has arrived: Cryptocurrency.
Here we will explain the term cryptocurrency in the shortest brief possible. It is a currency that takes the form of tokens or coins and exists on a distributed and decentralized ledger.
Now, this has become a global phenomenon so people on the digital platforms are now acquainted with this name, especially online currency like Bitcoin. It was the first currency that went mainstream, but today, there are more than 2,000 stable cryptocurrency and more in the offing.
As this is a global concept, it is typical to understand its ecosystem to reap its benefits. But if we go as per the global reports, holding funds in stable coins is the best bet. It is backed by stable assets such as USD and a secure resource for long-term investment.
In this article, we will learn about stable coins, the difference between stablecoins and bitcoins, and how to create and deploy them on the Xinfin network.
What is Stablecoin?
It is any stable cryptocurrency designed to have a relatively stable price. Their values are pegged to other assets and supply is being regulated by an algorithm. In other words, these cryptocurrencies are those whose value is tied to an outside asset.
What is the most popular and stable coin?
To establish the entire plot of stablecoin, let’s go through the list of stablecoins.
Diem (it is also known as Libra and among the list of best stablecoins is a permissioned blockchain-based payment system proposed by the social media giant Facebook. Before the launch of Libra, it was a more popular and acceptable stablecoin than Libra.
Now, crypto has become a global phenomenon, so many nations are exploring ways to launch their own digital currency. But they are finding Diem is a real threat to their endeavor as it is backed by Facebook that already has a presence across the globe and billions of users.
Its first stablecoin, the Diem dollar, is expected to launch in the 2nd quarter of 2021. Now you can find out the difference between stablecoins and bitcoins.
The second entry in the list of stablecoins is Tether, or USDT (-0.01). It is known as the best stable coin launched in 2014. As per market capitalization, it has become a very popular and valuable cryptocurrency across the globe.
The use of Tether is moving money between exchanges to take arbitrary advantage. Traders often resort to the practice to make money on these discrepancies. This practice has been adopted by Chinese importers in Russia and using USDT to send money by bypassing strict financial laws of china.
It was launched in 2018, USD coin is jointly managed by the cryptocurrency firms Circle and Coinbase through the Centre consortium. On the same lines, USD coins are pegged to the US dollar. According to market capitalization, it is the second-largest stablecoin.
It is currently running on the MakerDAO protocol. Established in 2015, dai is pegged to the U.S dollar and best stablecoin backed by Ethereum.
Types of Stablecoins
They are categorized into two subcategories:
- Collateralized Stablecoins
- Non-collateralized Stablecoins
Collateralized Stablecoins are further categorized into:
- Fiat-backed stablecoins
- Asset-backed stablecoins
- Crypto-backed stablecoins
- Hybrid stablecoins
Now, the question is, are Stablecoins worth considering?
Cryptocurrencies are so volatile in nature. So any digital user who doesn’t have a deep acquaintance with blockchain technology and doesn’t have to do much with the ever-changing market dynamics should keep their digital assets in Stablecoins.
But if you are a part of the digital ecosystem, you should acquaint yourself with the blockchain and how it is changing the way we do business.
The market of crypto is so volatile that if one doesn’t possess the true knowledge, they tend to lose big sometimes. Plus, cryptocurrencies are subject to recession so susceptible to instant decline in worth as well. So to avoid any potential risk, it is better to convert digital assets into Stablecoins.
But, in case, you are a trader, then Stablecoins are not fit for you. Because traders follow daily fluctuations to generate revenue, which is not possible in Stablecoins
Have a look at some of the attributes of Stablecoin:
- Low maintenance fee, secure transactions with complete anonymity
- They are reliable as backed by stable assets.
- Aids in Adoption
“According to CB Insights, stablecoins leverage the benefits of cryptocurrencies — such as transparency, security, immutability, digital wallets, fast transactions, low fees, and privacy — without losing the guarantees of trust and stability that come with using fiat currencies.”
Now, it is time to get in the process of creating Stablecoin. Here we explain its creation by using the Xinfin protocol.”
What is Xinfin?
It stands for “Exchange Infinite” and is known as a decentralized and hybrid blockchain for trade and finance. With the assistance of a hybrid blockchain system, it possesses the benefits of both private and public blockchain.
Since its introduction, it has been revolutionizing international trade, finance, and supply chain. It can efficiently connect multiple communities and enterprises using blockchain.
For the sage transfer of data and making the whole process transparent, it uses its native fuel Xinfin digital contract (XDC).
XDC protocol is customized to support smart contract layers, KYC/AML layer, and price stability using the existing cryptocurrencies. In terms of popularity, it has been backed by many investors for its future-proof features.
When it comes to wallet supported by Xinfin, it supports:
- Guarda wallet
- Biometric hardware wallet
What is a Stablecoin and how to create it on Xinfin:
- First and foremost, find a stable contract on the XInfin website to create a stablecoin. It hardly takes 2 min to issue your stable coin on the Xinfin leading network or Xinfin Apothem network.
- Just unlock your wallet or private account by using XinPay. Get directed to the page of stable coin issuance. Then create your stable coin on the network by entering all the necessary details.
- Find a suitable name as per the availability
- Select a symbol for it
- Mention the currency supply
- Agree to the terms & conditions and service agreement.
If you want any detailed description of the creation process and further assistance, you can visit the support of Xinfin website (https://xinfin.org/)
In the last five years, the supply of stablecoins and online currency like bitcoin has increased at an unprecedented rate. Thanks to the blockchain programming languages in 2021.
Now with the entry of players like Libra, its overall volume is likely to be increased. Most importantly, it will pave the way for cryptocurrencies to become mainstream and tap the unexplored potential in this ecosystem.