What is Tron? Tron's mission is to build a truly decentralized internet and aims to be the largest blockchain-based operating system in the world, known as the TRON protocol. The TRON protocol will offer high scalability, high availability, and high throughput computing to serve decentralized applications via smart contracts. Ethereum EVM-based smart contracts will be compatible and deployable on the TRON network as such Solidity developers do not have to rewrite their applications.
The stablecoin will burn TRX to maintain parity with the dollar, similar to Terra’s UST mechanism. It will be available on Tron, Ethereum and BSC.
The blockchain project Tron (TRX) will now have its own stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. native currency pegged to the U.S. dollar.
The founder of Tron , Justin Sun, on Thursday unveiled plans to launch a stable currency called USDD, which will be backed by cryptocurrencies. “ Tron DAO decentralized autonomous organization, system of rules that define how a decentralized organization should operate and which actions it should take. teamed up with major Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. players to launch USDD (decentralized dollar), the most decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. stable currency currency is a medium of exchange that defines value. in human history “announced Sun in a thread on tweets .
???? Today, we see the possibility of decentralizing the blockchain world’s most centralized a centralized organizational structure is one in which a single node or a small number of them are in control of an entire network. territory. pic.twitter.com/S5gX3JpiVH
– H.E. Justin Sun ???????????????? (@justinsuntron) April 21, 2022
The new USDD stablecoin will differentiate itself from other competitors in the market, such asTether (USDT) and USDCoin (USDC), which hold dollar cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. reserves and are centralized. Instead, it will resemble the decentralized algorithmic stable coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. from Earth UST, which is supported on LUNA, the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. native of Earth as well as in reserves of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. y AVAX, de Avalanche .
Similar to how UST does with LUNA, USDD will burn TRX, the native token of Tron to maintain parity with the U.S. dollar. . When the price of USDD is less than $1, users will be able to send $1 USDD into the system and receive $1 USD in TRX in return.
On the contrary, when the price of USDD is higher than USD $1, users will send TRX worth $1 to the decentralized system and receive 1 USDD, s s indicated in the technical paper of the project. Sun said that the USDD algorithm a process or set of rules to be followed in problem-solving or calculation operations, usually by a computer. will ensure that the stable currency maintains its parity with the US dollar regardless of market an area or arena, online or offline, in which commercial dealings are conducted. conditions.
The new stable currency will be a multi-chain project, since, in addition to being based on Tron as its native network, it will also be available in Ethereum a decentralized open-source blockchain with smart contracts functionality. y Binance Smart Chain. Interoperability blockchain interoperability, or cross-chain interoperability, is the ability to see and share information across multiple blockchains. between chains will be possible thanks to the network’s cross-chain cross-chain is a technology that enhances the interconnection between blockchain networks by allowing the exchange of information and value. protocol. BitTorrent (BTTC).
Following Terra: USDD to have $10 billion in reserves
The project, which promises to be fully decentralized, will be under the administration of the decentralized autonomous organization, Tron DAO . According to its founder, this organization will be in charge of managing the USDD reserves with an interest rate of 30%.
Tron DAO will also provide custody custody is a financial institution's legal capacity to keep and preserve financial assets for its clients to avoid asset theft or loss. reserves of up to USD$10 billion in “custody reserves”. highly liquid assets “ to serve as collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. backing for USDD. The funds will be used as “ The US dollar exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. rate will be kept stable and convertibility will be fully enforced. “, according to the document.
The structure resembles the recent plans unveiled by the founder of Earth Do Kwon, to acquire USD $10 billion in Bitcoin as reserves for UST. Earth which has already moved forward with these plans and currently holds just over 1.5 billion in BTC, has also opted for diversify these reserves . A few weeks ago, it was announced a purchase of USD$ 200 million in AVAX .
Sun did not elaborate on whether it plans to invest investing is when you put money in a financial scheme with the intent of making a gain. in Bitcoin for USDD reserves. In this regard, the founder said that they would be “ highly liquid assets obtained from the initiators of the blockchain industry “that would serve as collateral for the stablecoin .
The roadmap a roadmap is a high-level visual summary that helps map out the vision as well as the direction of a specific product. to the launch of the USDD of Tron will consist of four stages, the names of which refer to space exploration (1.0 Space , 2.0 ISS , 3.0 Moon a situation where there is a continuous upward movement in the price of a cryptocurrency. Often used in communities to question when a cryptocurrency will experience such a phenomenon, saying “When moon?” It is usually combined with “When Lambo?” y 4.0 Mars ). USDD is expected to officially launch on May 5.
TRX increased in price
The news comes amidst the growing popularity of UST and its native ecosystem, Earth . The stable currency of the project has become the third largest in the world. stablecoin of the market, beating BUSD, from Binance in terms of market capitalization.
In general, interest in the stablecoins decentralized assets appear to be growing among investors. The announcement also coincided with reports of the launch of another asset of its kind by NEAR Protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. which announced on Thursday the deployment of its native USN stablecoin on testnet an alternative blockchain used by developers for testing. (test network).
Meanwhile, in the midst of the announcements, the token of Tron registered a price increase. It looks like USDD’s launch plans helped the TRX market, which rose 16% in the last 24 hours to trade at a price of USD $0.072, according to data from CryptoMarkets .
- Terra’s UST: the first decentralized stablecoin with USD $10 billion capitalization
- Justin Sun, founder of Tron, will travel to space on Jeff Bezos’ ship.
- Cardano and Tron win in Vitalik Buterin’s Twitter poll on a future without Ethereum
Article by Hannah Estefania Perez / DiarioBitcoin
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