admin,March 20, 2018
Stablecoins in layman’s terms are currencies with a set value.
While sharing all the features that make crypto currencies so appealing they do not have the same issues with volatility and markets making then an easier and user friendly store of exchange and accounts. Stablecoins are one of the better opportunities in crypto. The aim is to become global, digital cash.
The market for stable coins is huge and in order for a cryptocurrency to become strong enough to challenge governments and stay stable there are certain milestones that need to be achieved.
Price stability, scalability, collateral not held in one entity and the most important is privacy. Currently none of the stablecoins enterprises have all of the above. All aim to offer the milestones in the future but currently there are only stable crypto assets available.
Challenges facing all stablecoins are scalability and privacy. Cash traded globally needs to be cheap private and quick. Platforms need to be to scale and private for practical reasons. A decentralized stablecoin could never serve as global, digital cash without some guarantee of privacy.
A stable coin currency could never achieve a global output without privacy. Personal entities may think it’s not so important for privacy but on the global scale where large international businesses are involved as well as governments and financial institutions, privacy is of paramount importance, to protect interests and business relationships.
As an example, Bitcoin disguises identities and has a ledger that is transparent. Wallets that are viewable to the public. Not only the balance of wallets are available but the monetary value of sales and payouts as well. But does everyone want this transparency which is great for nonprofits and such but not for everyone?
When purchasing a privacy coin does not mean that you are now protected and invisible. There are various ways that these transactions can be traced however unless you are operating within a criminal element the chances are slim to zero that you will be monitored. When in need of 100% privacy there are mixers like Bitmixer and Joint Market that can assist in jumbling origins.
Two well known and more popular Privacy coins are Monero and Dash.
- Monero is designed to be an untraceable currency Sender and receiver addresses are recorded on a private ledger and has private balances on your wallets as well,
- Dash is a two-forked network using nodes and miners that operate independently of sender and receiver and also sports a CoinJoin to cloak the sender and receiver of every given transaction.