What is USD Coin? What does the USDC do?

USD Coin (USDC) is a stablecoin pegged to the US dollar. For each USDC currency, $ 1 is stored in a US Treasury bill reserve account.

Badge; It works on Ethereum (ETH), Stellar (XLM), Algorand (ALGO), Solana (SOL), TRON and Hedera Hashgraph (HBAR) systems.

Behind the USDC coin is the Center consortium. This consortium includes Circle, Coinbase, and the mining company Bitmain. The USDC is run by regulated financial institutions, officials said.

Stablecoin was first launched in 2018. USD Coin developers are pointing to a financial world where cashless transactions will be much more common.

Further reading: What is a stable coin?

Developed to guard against the high price volatility of the cryptocurrency ecosystem, the USDC also lays the foundation for institutions to accept payments via digital assets.

Innovative solutions are offered in many areas, including decentralized finance and the gaming industry.

Its goal is to establish an ecosystem where the USDC coin is accepted by as many digital wallets, cryptocurrency exchanges, financial service providers, and decentralized applications (DApps) as possible.

How is USDC different from other stablecoin options?

Stablecoin options are increasing day by day. In fact, there are many alternatives to the USDC currency. USD Coin aims to stay ahead of its competitors in several respects.

Transparency is one of the outstanding features. The protocol assures users that 1 physical dollar is available for 1 USDC. In this context, the USDC is periodically audited to verify the amount of cash in its reserve and to compare it with market currencies.

Related: What is Token / Coin Burn?

Unlike other stablecoin options, USDC, backed by law-abiding companies like Circle and Coinbase, has the opportunity to expand internationally.

Supply of USD coins (USDC)

In theory, an unlimited amount of USDC can be created on the market. So far, the maximum bid has not been determined. When users want to buy a new USDC, production is done according to demand.

Especially in 2020, the huge rise of decentralized finance (DeFi) has increased the popularity of USD Coin. USDC has become the standard currency in many DeFi protocols.

How safe is USD Coin?

The USDC coin runs on the Ethereum (ETH) blockchain network and is compliant with the ERC-20 token standard. Therefore, it is easy to integrate into Ethereum-based applications.

Related: What is the Zero Knowledge Test?

Where to buy USDC?

According to data from CoinMarketCap, the crypto exchanges with the highest transaction volume on USDC are listed as Binance, Coinbase, Kraken, and Huobi. BtcTurk is among the exchanges that offer trading options against the Turkish lira.

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DISCLAIMER: The statements contained in this document are not investment advice. Never trade without thoroughly researching the markets and getting feedback from different circles. Read reviews from investors you trust and see their opinions. Remember that every investment involves risk. Make your own decision when taking any action. Cointelegraph is not responsible, directly or indirectly, for any damages or losses arising out of or alleged to arise out of its investment products or services.

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