Jun 30, 2020
Digital Dollar Launches On Algorand’s Blockchain
All over the world the dollar popular known as the USD (United States Dollars) have always held a great significant, standing out among many other currencies of the world. Most businesses and even foreign establishments choose to calculate their payments in respect to the dollar price at the time of transactions.This currency is seen as a very important one, and despite the tides and rapid change in era, it shouldn’t be allowed to go extinct.
The change in era mentioned above has to do with the great increase in technological advancement which is currently leading to an
era of digital revolution, across different spheres of life.
Since enhanced technologies are becoming the prevalent tools in the world today, the world also need to work towards its adoption, as a means of elevating their standards of operation.
The financial sector has really tasted the benefits of technologies such as the
Blockchain, as it is the technology which facilitates the developed of the digital currencies trending today.
The digital currencies also known as cryptocurrencies is indeed making its mark in the global system, as it affects not just the financial system, but also impacts greatly on other sectors that incorporates its use into
their system.But, the journey has not been very smooth for the different players in the cryptocurrency industry, such as the traders and investors,
due to the problem of price volatility. This instability in price leads to a whole
a lot of issues such as…
- Loss of funds which can result from price fall.
- Gear of investing so as to avoid loss
- Slow rate of adoption, as the level of uncertainty is very high.
And a whole lot of other things which does not in any way, help the cryptocurrency industry and its users.The world needed a permanent fix for this particular challenge so as to have the full taste of the benefits which comes from the use of cryptocurrencies, hence the creation of
stablecoins.
What Are Stablecoins?
Stablecoins are real assets tokenized coins, where a cryptocurrencies is pegged to the price of a real asset such as gold and other precious assets, in such a way that its price does not go below the underlying as, irrespective of the level of price fluctuation in the market.
Now that you know what a stablecoin is, lets go a little further to look at the Digital Dollar.
An Overview Of The Digital Dollar
A Digital Dollar is a form of stablecoin which is backed by the USD (United States Dollars).This form of stablecoin was developed following the importance of the USD to the global economy, so a cryptocurrency which is
collateralized by the USD will not only introduce the benefits of cryptocurrencies into the global system, but will also help to protect investors from loss which arises from the price volatility of cryptocurrencies.
With this USDC, the global adoption of cryptocurrencies will become easy as potential traders and investors will no longer be afraid of taking part in the industry, because their investments will be secured with the Digital
Dollar, whose value does not go below the USD. Isn’t that amazing?
This USD Coin is the most adopted stablecoin all over the world and due to its importance in the world today, there is still a surge in its growth as a result of great demands all over the world. The Digital Dollar has become the next big
thing across the globe, as it gives its holders a taste of cryptocurrencies and the comfort that comes with transacting with the
USD.
The First Digital Dollar Launches On Algorand’s Blockchain
Since a powerful blockchain is needed to power a revolutionary tool for transactions such as the Digital Dollar, the Circle platform has resolved to collaborating with the Algorand foundation, to use the Algorand’s Blockchain in powering up the USDC.
In case you are hearing of Circle for the first time, CIRCLE PLATFORM is a global financial technology system, which gives businesses, establishments and other systems all over the world, the opportunity to advance their operations by making good use of stablecoins and the Blockchain technology It has helped boost the performance of a lot of systems through its support of multiple financial transactions on the Blockchain.
So, it has announced its quest to join force with a highly esteemed Algorand system to make digital transactions, easier for the users.
Since you have just learnt about the Circle platform, and its partnership with Algorand foundation, let’s go on to…
Why Circle Platform Launches The Usdc On Algorand Blockchain
This won’t be a wrong question if asked?Why Circle prefers Algorand’s Blockchain to all other Blockchains in the digital space.
To answer this, you will need an
understanding of…
Deep Understanding Of Algorand’s Blockchain
The Algorand’s blockchain is a next generation technology which uses the Pure Proof-of-Stake (PPOS) algorithm to solve the scalability problems experienced in other Blockchain such as the one affecting the Bitcoin chain.
It is an open-source permissionless Blockchain that is embedded with the great features such as high transactions throughput, full scalability and increased speed of operations, and I considered as the Blockchain 3.0 due to its ability to provide an unrivaled Blockchain experience to its users with full assurance of security and decentralization.
So, as a result of how solidified the Algorand’s blockchain is, users of the Circle system will now have the ability to possess full control of their funds by effortlessly changing it from fiats stored in the inefficient banks, to a digital dollar where they have custody of it. This will genuinely guarantee the security of these funds.
Even while carrying out payments with this digital dollars on Algorand’s blockchain, the system is still very secured and protected from hackers or manipulators, as all the payments and other transactions made on it are
clearly viewable on Algorand’s blockchain.
Algorand’s blockchain, as a disparity to the numerous blockchain systems, has the capability to shoulder numerous transactions all at once, without breaking down.This means that more than a million transaction can be processed by Algorand due to its increased throughput.
So, the users do not have to worry about a congested system when trying to execute a transaction. The speed at which Algorand runs its operations is also astonishing, reducing the wait time for the users to get their
transactions done.
Circle platform being a system which provides an avenue for users to build on sophisticated blockchains, sees the design of the Algorand’s blockchain making headway in the blockchain industry and understands that it is the most qualified blockchain with the infrastructure that will help them provide the best services to the Circle platforms customers, both in the use of the digital dollar and the building of decentralized financial applications.
Conclusion
Through the launch of the Digital Dolar (USDC) on Algorand, the global payments has been simplified and is no longer restricted in anyway, due to the full control of users over their funds.
Irrespective of the number of Digital Dollar transaction and how heavy it is, Algorand’s blockchain is capable of executing them all with a great speed and at a cheap transaction rate.
The Circle platform will definitely experience a high improvement through the launch of the Digital Dollar on the Algorand’s
blockchain.
RESOURCES ON ALGORAND ECOSYSTEM:
