USD Coin (USDC) is a cryptocurrency with a fixed value of US$1. It belongs to a large category of cryptocurrencies known as stablecoins. Tether is another popular stablecoin (USDT). To keep prices stable, we use different mechanisms such as B. Tie its value to fiat currency or commodities. Stablecoins are an important tool in the volatile cryptocurrency market, allowing crypto holders to benefit from the relative stability of the dollar and other stable assets.
CENTER is a USDC stablecoin pioneer. It is an organization established by the cryptocurrency exchange Coinbase and the financial technology (fintech) company Circle. Circle first announced plans to launch his USD Coin on May 15, 2018, raising $110 million. USDC first started on the Ethereum blockchain as his ERC-20 token but has since expanded to other blockchains including Solana, Stellar, Avalanche, Flow, Tron, and his Algorand.
As of November 15, 2022, USDC has a market capitalization of $44 billion, making him the second-ranked stablecoin. According to CENTER's first report released in October 2018, approximately 127 million USDCs were in circulation. It will exceed 44 billion by 2022.
Is it transparent enough?Cash and treasury bills as collateral protect USDC. For every USDC token in circulation, $1 is held as collateral in an account at a regulated US financial institution. US accounting firm Grant Thornton LLP audits these accounts. Starting in May 2022, Circle has announced that it will provide weekly certification reports. They help build trust in USDC by disclosing the exact amount of real funds that back their stablecoins.
What is the story of USDC 2.0?In August 2020, the CENTER Consortium announced an updated version of his USDC. USDC 2.0 enhances the capabilities of digital wallets and other services that support stablecoins. Previously, holders of USDC and other Ethereum-based tokens had to pay a fee to process transactions. At the same time, the customer must hold his ETH account to pay gas bills.
According to the developers, this was an obstacle to mass adoption. To remove this barrier, CENTER has integrated its gasless transportation capabilities into USDC. This allows the wallet developer to pay fees on behalf of the client or collect fees directly in her USDC token instead of ETH. The platform team has developed a public USDC smart contract to integrate support. Developers may provide this service themselves or use third-party services and pay the associated fees.
The consortium team believes gas-free delivery will greatly expand USDC's capabilities in payments, peer-to-peer transactions, and e-commerce. This update is fully compatible with previous versions of the protocol. This means that USDC 2.0 will not impact wallets, exchanges, or applications that are already integrated with USDC.
How can USDC be used?As a means of payment. Suppose you want to make a payment using crypto. In this case, you can rest assured that USDC has a constant value over time without the extreme price fluctuations that are common with cryptocurrencies.
As a way to earn interest. Some platforms offer interest payments to users in exchange for USDC deposits. Please note that this activity involves risks. Also, USDC could reveal itself with his DApps and DeFi. USDC is used by various DApps and DeFi protocols such as Aave, Compound, Dharma, and OpenSea. Bridging the gap between traditional payment providers and the world of cryptocurrencies. Circle also partners with the two largest payment networks in the world and several popular payment processors. In December 2020, Circle partnered with Visa to allow businesses within the Visa network to accept his USDC. July 2021, Mastercard (NYSE:MA) has announced plans to integrate USDC as a payment method. Payment processors Stripe and Checkout.com have both announced that they will support his USDC in 2022.
What is the difference between USDC and USDT?Many believe that USD coins are the safer option. why? Because their reserves are transparent. Management has submitted reports and verified reserves since its inception. Tether Limited, on the other hand, has not disclosed its reserves for years. It has also faced legal issues related to its lack of transparency, with a lawsuit alleging that the issuance of unsecured tethers caused $1.4 trillion in damage to the crypto market. Check USDC live price:
https://www.mexc.com/price/USDCThe end of the tether is that size. It has a much larger market capitalization than USDC and the highest trading volume of any stablecoin. Due to the high trading volume, it is usually a little easier to exchange Tether for other cryptocurrencies. Additionally, USDC has the advantage of being subject to greater regulatory oversight. This is because it is considered a store of value in most US states. Tether has not yet been independently verified.
