Introduction

Hello Steemians,

Welcome to another week in the Steemit crypto academy. I attended the lecture by the crypto professor @yohan2on as the professor based his teachings on Stable coins and it's part 2 of the lecture. This blog is my homework task after the completion of the lesson. I will be discussing USD Coin (USDC).

Source

Before I proceed, let's look at what a stable coin is all about. Stable coins are the type of cryptocurrencies that has their value pegged at certain assets which could be fiat currency, gold or silver and other cryptocurrencies. Or A Stablecoin is simply a cryptocurrency designed to stabilize the price volatility of another fiat, crypto or example.

Categories of stable coins

1. Fiat Stablecoins: This is where the USDC falls into. The software-based to maintain the fiat value they are pegged to. More examples of the fiat Stablecoins include Tether, True USD(TUSD), Gemini Dollar (GUSD), Digix Gold (DGX) etc.

2. Crypto Stablecoins: Stablecoins in this category are designed to maintain the crypto value they pegged to. An example is Makercoin (MKR & DAI).

3. Algorithmic Stablecoins: These are economic models software-based geared towards stabilizing the price of assets. Note, just unlike the fiat and Cryan example coins who are all collateralized, the Algorithmic is Non - collateralized. Examples of the Algorithmic is the Basis, Kowala, Fragments etc.

4. Hybrid Stablecoins: This is seen to be a combination of all the listed categories as seen above. It puts the workings of all the college circled and Non-collateralized business models in a blend suitable to harmonize the price of assets. An example is Carbon, Projects etc.

Brief History of USDC

USD Coin is developed by the Centre consortium, a partnership between Circle and Coinbase. The technology and governing framework are developed by the Centre, while,e Coinbase is the first commercial issuer of USDC.
The circle was founded in 2013 by the entrepreneurs Jeremy Allaire and Sean Neville. USDC came into existence in the year 2018 and invented by an association of companies known as Centre. Because mention here that USDC still maintain the 2nd position as the largest stable coin. And in terms of market capitalisation, it's number 11.

Features of USDC

Below are a few features associated with USDC

• USDC is fully-backed by the US dollar at a ratio of 1:1, that is, 1coin= $1.
• It is adaptable to different crypto wallets and that make its use on DApps easy.
• Because It is built on the Ethereum blockchain, it automatically makes it an ERC-20 token.
• USDC offers quick use in the market around the world.
• It offers the quick movement of money to take advantage of the market on favourable days.

###from TO USE THE USD COIN
Like every other coin, remember that USDC represents every single USD on the Ethereum blockchain which operand ERC-20 tokens. And most wallets seems to support this standard since it runs on the Ethereum blockchain. So it is also traded like every high standard Ethereum blockchain.

The Differences between USD Coin (USDC) and other Stable coins

Apart from the USDT which is among the fiat Stablecoins that seem not to be transparent in their auditing, others have the same modules Operandi. Also is Digix Gold (DGX), whose value is pegged to gold. The issuers claim that they are regulated financial institutions that maintain very high standards of corporate governance coupled with full transparency and this has helped the USDC price to be regulated at $1 mostly all times, meaning the ratio of 1:1 to USD is maintained almost all times. More also, most Stablecoins have the same business models but the distinctive difference lies in their fee policies and different partner organizations.

Conclusion

Generally, we should know the primary reason for floating a Stablecoin is to maintain and stabilize price volatility of assets; fiat, crypto or stock commodity etc. Thanks to the crypto professor @yohan2on for this rear opportunity, it’s a privilege learning from you sir.

Special Regards;
Cc: @steemcurator01
Cc: @steemcurator02
Cc: @steemitblog
Cc: @yohan2on
Cc: @trafalgar