The volatility in cryptocurrencies is one of the most significant issues that prevent mainstream acceptance and use in the broader market. However, a new breed of crypto is planning to challenge the preconceptions.
The Bitcoin crash in 2018 left many investors skeptical that cryptocurrencies are a good investment. Investors prefer to lock in their gains once they have them, and up until recently, this has not been possible due to high volatility.
Let’s look at some basics first. For starters, what is a smart contract?
A Smart Contract – What is it?
A smart contract is a software protocol that will only execute commands once specific conditions and criteria have been met. Smart contracts typically include information built into the protocol about the parties involved.
The contracts also carry the condition of agreements between parties and any other necessary information to carry out a safe transaction. For this transaction to work smoothly, smart contracts use distributed ledger technology called a blockchain.
Smart contracts streamline commercial practices by automating aspects of financial transactions. They remove the need for intermediaries (banks or financial institutions) because people cannot alter transactions made on a public distributed ledger.
Here is the crunch line – the software executes the agreement once the terms of the deal have been met, regardless of other conditions, making a smart contract unbreakable.
Okay, so now we know the baseline, let’s look at the details.
What is TrueUSD?
TrueUSD is a stablecoin distributed/issued by TrustToken. TrustToken is not like Bitcoin. TrustToken provides a platform for digitizing assets. They essentially tokenize assets like fiat currencies, real estate, or precious metals and issue smart contracts-backed cryptocurrencies against them.
TrueUSD is an ERC-20 token that allows individuals and institutions to enjoy the benefits of using cryptocurrency without the risk of volatility. So far, so good!
TrueUSD token is backed up 1-to-1 with the US dollar. TrustToken does not keep any USD reserves. Instead, they have partnered with banks and fiduciary institutions which hold the assets in escrow.
Here lies the problem with TrueUSD. If you don’t back your token with USD reserve and rely on third-party escrow, you will come across the same access problems as experienced with traditional financial institutions or banks essentially. That will mean a delay in purchasing and redeeming your tokens and subsequently makes the transaction process pointless.
Crypto is the way forward in the accessibility factor, accessible to those who do not have standard banking facilities and accessible anytime, day or not, and on the 4th July.
What is SameUSD?
SameUSD (SUSD) is the US dollar stablecoin from the Samecoin protocol. It acts as a spendable currency with matching stable values and fiat-like numbers, making it easy to trade and, more importantly, easy to understand.
Samecoin is also an ERC-20 standard token pegged 1:1 with a variety of stablecoins that are pegged 1:1 to the US dollar, meaning that 1 SUSD is redeemable for $1. Interestingly, SUSD is also available in Binance Smart Chain (BSC), giving it an edge over TrueUSD.
SameUSD users also benefit from instant worldwide transactions, decentralized accounting, year-round availability, accessibility, and immutability.
Now we understand what the currencies are and their fundamental core values. Let’s look at the differences between them.
Comparative features of TrueUSD vs SameUSD
|Blockchain||Ethereum||Ethereum and BSC|
|Maximum Supply||287,433,840 Million||According to the size of the reserve|
Other comparatives worth considering
|Access||Via Escrow Access||Fast Access via App|
The deciding factor has to be speed; if you have to wait for your money, it’s not a modern viable option.