There are already thousands of cryptocurrencies around the world. Stablecoin? Isn’t it another type of cryptocurrency? If your mind with these kinds of thoughts, you should really read this article. Trust me. Stablecoin is Different. Let me Tell you why.
The value of the vast majority of cryptocurrencies often fluctuates sharply, and is regarded as an investment product with both high risks and high returns. The majority of cryptocurrencies involves three disadvantages: unnecessary currency risk, difficulty in transaction and hinder long term dapps(decentralized application) that require price stability. This is the time that stablecoins could jump in to help.
Solving unnecessary currency risk
Stablecoins’ name already implies its uniqueness. Because Stablecoins is pegged to another stable asset,which make it fluctuate outside of the cryptocurrency space and reduce financial risk. Simply put, Stablecoin is digital cash. Think of it as a better, smarter dollar. Unlike traditional fiat currencies, Stablecoin is unbiased — available to anyone, anywhere — and it is not caged by the disadvantages of conventional financial services (slow payment settlement and expensive fees, for example). To participate in the traditional financial system, banks and other financial services companies require a lot from would-be users, including personal data, proof of good credit, and even minimum deposit amounts. These requirements can be stifling and create more underbanked people of the world, not less. Stablecoin Allows anyone anywhere, regardless of economic standing, access to financial services that provide unparalleled financial freedom.
Take Dai Stablecoin as an example, in Argentina, where inflation is crippling, the government has routinely placed restrictions on capital, including limits on withdrawals, which hurt residents who use the dollar as a savings currency. For those citizens, Dai offers a solution: easy access to a more stable currency. One Dai token is worth the same in the United States as it is in Argentina or anywhere else in the world, and it can be exchanged peer-to-peer without any interference from a central bank or any third party.
DECENT also has our own stablecoin called AIA, but unlike Dai, we are solving another set of problem faced by game developers publishing their games on conventional platform like Google Play or App Store. Their bane was the long waiting time for every payouts, ridiculous cuts that they have to pay to the platform for each sales, limitation on their customer side because they have to own credit card to do purchase and more limitation made possible when relying on conventional banking and platform.
With AIA and our platform ALAX.io , gamers and publisher can rely on our stablecoin to do in-game or game purchase with ease by using cash that can be transformed to stablecoin AIA thru our brick-and-mortar merchant like Alfamart in Indonesia, Offgamers Worldwide, and more. With our stablecoin we can seamlessly transfer payouts to publisher eliminating large commission fee by bypassing the traditional banking system and can make payouts in minutes not weeks unlike Playstore and other app stores.
So everyone happy by leaving the old and embracing the new. But how is this it possible?
How is the Magic Happens?
The old banking system is based on outdated technology and require clearing mechanism if there’s a transfer between account, banks or countries. This clearing system is the one that hinder their speed and require resources to pull of in day-to-day basis to verify your transactions with the Bank as your middleman.
But using blockchain, once a commodity or a currency is tokenized or pegged to the blockchain, their transfer of values can be verified automatically in mere seconds using the vast network of miners or stakers to verify these transaction without any middleman involved. In our case, AIA is verified using DCore blockchain with DPoS system which in layman terms, you can transfer a dollar and receive a dollar and have it verified on the blockchain for everyone to see (if it’s a public blockchain) in seconds with a microscopic amount of transaction fee by bypassing the old clearance system of banking.
In the near future, gone will the days of having fees for each transaction, long and costly waiting time to get your own money.
DECENT will run more of Basic by DECENT series to educate and prepare the people for the #DECENTralized future.
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