Opinion: Stabilini will be the key to the recognition of cryptocurrencies (if they actually work)

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Opinion: Stabilini will be the key to the recognition of cryptocurrencies (if they actually work)

We offer to your attention translation of the article of cryptozoologist Mike Orcutt for MIT Technology Review in which he talks about how stabilini can encourage wider acceptance of the cryptocurrency payment applications while maintaining the declared value in the long term.

Whether cryptocurrency is something more than just a speculative asset? If so, a key role to play in this new form of digital currency, designed to maintain a stable value. At least it counts more developers in kryptomere.

According to Garrick of Hileman, head of the research Department at the company’s Blockchain, we are in the heart of the “Cambrian explosion” of such projects. According to published this week the research Hileman, the number of so-called tablconv grew to 60 over the last 18 months, and in the near future is expected to launch at least another dozen. Hileman says that these indicators say about understanding that the volatility of cryptocurrencies such as bitcoin and Ethereum, creates a problem for the most popular blockchain— based applications (payments, lending and insurance). According to him, this reflects the hypothesis that a stable digital currency can build a new level in the infrastructure of cryptocurrency, which can greatly expand the global user base.

Cryptocurrency is often positioned as a new form of money that will benefit people without access to banking services or those suffering from Hyper-inflation of national currencies. Another popular position is that the smart contracts (a computer program on the blockchain, which automatically moves the cryptocurrency between users according to agreed conditions) will revolutionize the Internet business.

But such a payment still has not received a large influx of users, and optimistic vision of the future of decentralized applications has been replaced by uncertainty as to whether Ethereum and similar platforms to live out the hype. The sharp fall in the value of Ethereum and other cryptocurrencies may well be one of the factors why they have not found wider application.

If the goal is to expand the user base, it is important to be clear about what we mean by steilcoom. This term can be used to describe several very different concepts. Popular stablon Tether, which supposedly provided US dollars in Bank accounts has existed for several years. It is a useful tool for traders wishing to protect their profits from the volatility of other crypto-currencies without the need for conversion to Fiat. Tether success spawned many imitators.

But, according to the study of Hileman, almost 60% of the $350 million invested by venture capitalists, went to projects tablconv not affiliated with banks. He promises to be more decentralized and accessible. Some as security using cryptocurrencies instead of Fiat, relying on smart contracts to manage the volatility of the pledged asset. But the majority of the funding has not yet launched coins, the so-called “algorithmic Central banks”. This coin does not use the software as such, focusing instead on software to increase and reduce supply to maintain prices.

Critics doubt that these more complex stabilini will be able to keep their performance in the long term. Hileman says that such systems raise complex legal issues, given that many of them rely on the elements of market manipulation to maintain price stability.

He concludes:

This is a very early stage, not only technically, but also from the point of view of regulation. Attempts to make too many predictions about where the wind blows, at this stage, threat.

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