Steemit Crypto Academy Week 7, Stable Coins Second Edition.

The description of Paxos standard (PAX) as a stable coin.

From the extensive lecture delivered by professor @ yohan2on this week, he has explained and told us the things we need to know about stable coins but I will like to mention a few things I understand about stable coins in this post before I go on to write extensively on the particular stable coin I have selected for this post.

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Stable coins serve as a good progress in the crypto world, making it easy to keep our investments safe against the highly volatile market. Looking for a place to keep your asset without having the fear of losing everything within a twinkle of an eye, stable coins serve as a safe place to keep those assets.

The aim of paxos is to establish a solution for modern settlement thereby eliminating the available risks of traditional settlements, paxos first started as a platform for making exchanges and then it began to establish itself as a company used for modern settlement through the impact of blockchain technology.

Paxos is an ERC-20 token that is actively built on the ethereum blockchain U.S dollars are kept in reserve, the Paxos token is pegged to US dollars and are only kept in circulation when there is an equal and corresponding U.S dollar in reserve as well.

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Advantages of Paxos as a stable coin.

Paxos offers an option of immediate conversion of physical assets into digital assets.
It also makes it possible for currencies to be transferred with an immediate effect.
Paxos as well offers a reduced commission on transactions a lot.
Pax offers a great support for large ventures.
There is a huge similarity between paxos on other popular stable coin like tether.

Disadvantages of Paxos as a stable coin.

Paxos operates as a centralized system, this makes it highly backed by censored authorities and if any central law is broken, accounts could be frozen.

If at any point you want to carry out large transactions on Paxos, KYC will be required and this is bridging the access to privacy.

[Source]

(https://www.blockfer.com/stablecoins/reviews/paxos-standard/)

(https://www.coinbureau.com/review/paxos-standard-pax/)

(https://www.paxos.com/pax/)