Transparency and Proof of Solvency for Stablecoins Are 'Fiatcoins' Way to Greatness
2018 has been a devastating year for a lot of digital currencies, which is a well-known fact at this point. However, the same year has been quite prosperous for stablecoins — cryptocurrencies backed by fiat currencies, such as the USD — which started appearing in great numbers. What Is A Stablecoin? Stablecoins are digital currencies which were designed in a way that allows them to resist high volatility. This is also their greatest difference from regular cryptocurrencies, such as Bitcoin. This is possible due to the fact that each stablecoin is backed by a certain amount of traditional currency. In most cases, 1 stablecoin has a value of $1 USD. There are also examples of stablecoins being backed by other cryptocurrencies, or others, whose price is being kept stable through careful control of their circulating supply. These stablecoins use special algorithms to control their value, and they can easily prove their solvency at any time. In a way, stablecoins that depend on fiat