Recently, there has been a rapid rise in crypto investments. Lots of progress has been made with Bitcoin, reaching an ATH of $64,805. To several businesses and merchants, the price volatility in the crypto space is a huge worry, and an embargo to use cryptocurrency as a viable payment option.
Stablecoins have solved the problem of price volatility. A stablecoin is a cryptocurrency pegged to the market value of an asset, commodity, or fiat currency. The price of a stablecoin is determined or equals the value of the underlying asset to ensure relative stability.
This piece is a delve into the features, comparative analysis, and functions of two stablecoins. Is SameUSD edging the USDCoin in the crypto market? Or are they even?
Comparative features of SameUSD vs USDCoin
|Blockchain||ETH, BSC||ETH, Stellar and Algorand|
|Maximum supply||According to size of reserve||According to size of reserve|
What is USDC?
In October 2018, the Centre Consortium, in collaboration with Cryptocurrency exchange Coinbase and Circle Internet Financial, launched the USD Coin (USDC). USDC is built on the Ethereum blockchain. Since its launch in 2018, it has gathered enough momentum and has become one of the largest stablecoins. This momentum doesn’t seem to slow down soon.
A pegging method stabilizes USDC. 1 USD Coin is equivalent to 1 USD, and it’s held in reserve bank accounts. Regular audits are carried out to ensure price stability. This way, no matter the circumstances, it’s certain that USDC will remain at a dollar.
What is SameUSD?
SameUSD is the first in the family of stablecoins, which will be a part of the Samecoin Ecosystem. SameUSD works by giving its users the advantage of crypto and fiat in one digital currency. Also, it is a means of storing value, making online payment easier, and also serves as a replacement for USD when trading crypto.
SameUSD is pegged to the value of a basket of USD-based stablecoins, so its value, at any point in time, equals 1 USD. To ensure more stability, SameUSD is backed by a basket of eight stablecoin. Through this stable mechanism, users are protected against risks and price volatility that an individual stablecoin might undergo.
SameUSD vs. USD Coin
In the comparison of the two coins, we will be considering the following factors:
- The Mechanism for Stability
USD Coin is pegged at 1:1 to actual dollars (USD), It is held in reserve bank accounts. SameUSD operates by being pegged to a bundle of stablecoins, making it very stable and resistant to price volatility.
- Wallet Structure
SameUSD uses SamePay to facilitate the sending, buying, receiving, exchanging, and management of crypto. It’s fast, easy to use, and only requires the SameID of your recipient. Transactions on SamePay have the lowest fees on the market. USD coins can only be transacted on wallets that support Ethereum blockchain; an example is Coinbase.
- Trust and Transparency
SameUSD is secured by the SameID. This means every transaction gets an added security layer. For USD Coin, a concerning factor is the fact that the reserves in banks are controlled by Circle and Coinbase, who will only operate as long as the government permits. Otherwise, if the government seizes to permit, then it’s a game over.
From the analysis above, SameUSD brings a significant improvement to the crypto market. SameUSD is an improvement on the existing stablecoins. The major advantage of SameUSD over the USD coin is the ability to withstand price volatility. As the crypto market develops, there are bound to be improvements, and SameUSD is an outstanding improvement that should be embraced.