• ✅A brief history Why stablecoins appeared. USD Tether, the first case. Maker's answer with DAI. 💥【FREE!!!】

  • Nov 18 2021
  • Length: 3 mins
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✅A brief history Why stablecoins appeared. USD Tether, the first case. Maker's answer with DAI. 💥【FREE!!!】

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  • A brief history Why stablecoins appeared. USD Tether, the first case. Maker's answer with DAI. USD Coin as a better model than USD Tether. Stablecoins are cryptocurrencies designed to maintain a stable value , which differentiates them from others such as Bitcoin, known for their price volatility. Most cryptocurrencies, such as Bitcoin or Ether , are assets whose price can change abruptly because they are simply due to supply and demand . This is very attractive for some people , since thanks to these price variations they aim to make money . But you can also lose a lot . The stablecoins emerged to create an asset that has all the advantages of a cryptocurrency but with a constant value over time. In other words: stablecoins are a solution that the market found to the volatility of cryptocurrencies. Bitcoin vs stablecoins Stablecoins seek to solve cryptocurrency problems such as volatility and poor predictability. Brief History of stablecoins In 2014 came Tether (USDT) , with the idea of creating a digital currency with all the advantages of a cryptocurrency but not its volatility . To do this, the company Tether Limited proposed that for each available USDT there would be one dollar deposited in a backup bank account. But this had a fundamental problem: it required the trust of users in a company, precisely when one of the bases of cryptocurrencies is to eliminate the need to centralize trust, calculation power or information in a third party. This model was the only one available for four years, and it was surrounded by controversy . The company was unable to establish a reliable auditing mechanism , and various investigations, including by the US government, determined that Tether Limited was in close relationship with various exchanges offering its token. In 2019, the company admitted that for every token in circulation there was only 75 cents of cash backing . The rest is in other financial assets . As a result, the need for a decentralized stablecoin gained ground, and Maker launched DAI , a more technical and complex project, but one that achieved its goal and also generated a growing community of developments . Finally, the appearance of USDC took up the idea of ​​Tether but with an extra guarantee: a permanent external audit .
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