Introducing Stablecoin
In this article, we are going to talk about what Stablecoin is because it is something people in the crypto industry. need to know
Stablecoin is a digital asset that always has a fixed value. It is designed to refer to the value of other assets such as gold prices, currency exchange rates. thus making it different from Bitcoin and Ethereum Therefore making it popular The types of stablecoins can be divided as follows.
- The fiat or stablecoin backed by fiat stablecoin is considered the most stablecoin.
Coins of this type are Tether , USD Coin , Indonesia Rupiah Token.
- Crypto-based stablecoin backed by digital assets Stablecoin assets are guaranteed by Cryptocurrency
Coins of this type are Maker Dao.
- Non-asset-based underlying value Algorithmic Stablecoin Algorithmic Stablecoin is a large class of stablecoin, but it is not widely used.
Coins of this type are Basis.
strength
- There is less volatility, thus creating stability.
- Blockchain technology is used so there is no intermediary verification.
- Access to check transparency by yourself
weakness
- There is a central control
- There is a third party involved in the investigation.
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