The 10 Leading Stablecoins of 2019 and What You Should Expect

Stablecoins were the stars of the cryptocurrency firmament in 2018. Now, let us look at what the 2019 scene holds for them.

Bitcoin and Litecoin at the background

What is the leading stablecoin?

With the recent events in the cryptocurrency industry, investors are now seeking better ways of acquiring more gains by switching to more stable coins.

And, the recent ups and downs faced by cryptocurrencies especially in 2017/18, have positively impacted the rise of stablecoins.


Generally, stablecoins are cryptocurrencies with intrinsic values that are linked with fiat currencies such as the US dollar or other assets like gold.

They are more acceptable than cryptocurrencies such as Bitcoin because they appear to be more stable and reliable. They offer a price peg for various goods and services while still maintaining the properties of a store of value and a medium of transfer.


Currently, there has been an influx of stablecoins in the market with a few of them presently trending. Here are the top 10 leading Stablecoins in 2019.


Tether (USDT)


Tether token, which is among the most successful Stablecoins in the world, was initially issued by the Tether Limited Company and it’s backed up by the US dollars. 1 Tether is equivalent to $1.


The USDT coin was therefore designed to settle payments in any asset or fiat currency that’s convertible to the U.S dollar.

The Tether token is available for trading in various cryptocurrency exchanges such as GoCoin, Shapeshift, and Bitfinex among other crypto exchange platforms.


TrueUSD (TUSD)

TrueUSD is another successful US-based token. It was developed by a US-based Fintech company known as the TrustToken.

The TrueUSD was initially designed to enable more efficient daily to daily financial transactions and the institutional adoption of cryptocurrencies.

The TrueUSD is a fiat-collateralized cryptocurrency that is legally backed making all its transactions as much transparent as possible. Additionally, all the financial transactions of this token are verified and attested by 3rd parties.

Given its underlying technology and its centralized nature, the TrueUSD will indeed flourish more in 2019.

BaseCoin


BaseCoin is a cryptocurrency designed to maintain its price stability by reducing high volatility experienced by many cryptocurrencies such as Bitcoin and Ethereum. Its value is linked to the US dollar.

The BaseCoin token operates in a decentralized nature which makes it quite hard to verify how the market is adopting its tokens. Its data is majorly provided by 3rd parties.

MakerDao (DAI)

The MakerDao was initially launched in 2017 by the MakerDAO Company. Concerning the backing assets, DAI is unique as compared to other Stablecoins.

It uses a complex system of CDP- Collateral Debt Position, unlike other coins such Tether that is directly backed by the US dollar. The DAI token is supported with smart contracts that are designed to keep it stable.

Though the fact that the US dollar does not back the DAI coin still looks strange to many, significant investors such as a16z crypto fund by Andreessen Horowitz has shown considerable interest as it owns about 6% of DAI.

USDc (USDC)

The USD coin is a US-based startup launched by the Center consortium and Circle platform.

The USD coin is a promising coin that has shown much progress and is expected to grow rapidly in 2019. This coin is based on the ERC20 token protocol. 1 USDC is equivalent to 1 US dollar.

PaxoStandard (PAX)

PAX was initially approved on 10th September 2018 by the New York Financial Services Department.

PAX gets its monthly reports audited and published by Withum which is the leading American Audit firm.

Currently, PAX has gained favourable attention especially given the fact that it’s regulated and approved by the world’s first government.

Alchemist SDUSD

The NEO cryptocurrency Blockchain is the team behind the Alchemist. The NEO platform is decentralized and allows its users to issue the SDUSD tokens mainly based on user existing portfolios in the platform.

According to the NEO platform, the Alchemist token is designed to offer a solution to the rampant issues of volatility in the cryptocurrency ecosystem. The coin is expected to make significant progress in the year 2019.

Gemini USD (GUSD)

Gemini Dollar is among the most accepted and latest Stablecoins in the market.

It was an ERC-20 token, released on 10th September 2018. The coin was created and released by cryptocurrency exchange, Gemini, that’s owned by the Winklevoss twins and operates on the Ethereum Blockchain platform.

The Gemini dollar is another unique Stablecoin that’s independently audited by the BPM Accounting and Consulting regularly.

Carbon

The carbon Stablecoin is built on Hashgraph, and it uses smart contracts to maintain its stability. It works on the Ethereum Blockchain system.

It’s was created to reduce the emission of toxic gases in the atmosphere in order to preserve the environment.

The carbon platform brings together environmental-related entities such as carbon emitters, clean energy generation companies, and other parties.

Given the recent global concern for environmental preservation in the world, the carbon Blockchain project will definitely succeed.

EpayUSD (EUSD)

The EpayUSD is a 3rd party payment company launched by Epay. It’s linked to the US dollar where 1 EUSD is equivalent to 1 US dollar.

The Epay’s Global Remittance Network uses the EUSD as an accounting symbol designed to accelerate capital circulation and transactions.

Conclusion


The advancement of stablecoins in the cryptocurrency industry is expected to rise given the fact that they are more viable and useful as a currency as compared to other cryptocurrencies.

However, we shouldn’t forget about the issue of volatility which is the major issue affecting the advancement of the cryptocurrencies.

How Cryptocurrency Payments Are Reducing Transaction Costs Globally

One area that cryptocurrencies impacts the global stage is price reduction. Low transaction cost and faster payments make account settlement good to go.

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It’s not news to anyone who has been following the cryptocurrency trend that, while they have attracted lots of attention, they have also failed to penetrate our economies as well as some analysts expected they would.

Indeed, cryptocurrencies have run into several difficulties, putting them into the odd position of being household names, but not household items. That is, everyone knows what a cryptocurrency is, but most people don’t own any or know how to use them.


Yet while the cryptocurrency craze has brought few widely recognized improvements to our economy, there is one specific area where it should, as penetration grows, show a great improvement in most peoples’ lives.
That area is transaction costs.

High costs we ignore

Bank transactions are never free. Every single transaction that happens involving a bank, be it a debit/credit card purchase, a bank transfer, issuing a check, or even getting cash via an ATM, has a cost.

The allied cost can often be small enough for people not to notice or care, and in some cases the cost is paid by our counterpart, so we completely ignore their existence.


However, these costs add up. It might be a few cents here or there, but little by little, they end up making a dent on our finances – we just don’t notice. When we hear that it costs $10,000 to move $1,000,000, we assume that’s a rich people problem.

We don’t have a million dollars to move, so why should we worry if the rich are paying a lot? They have a lot, so it’s only fair.


Except that it’s not the raw numbers that matter. It’s the percentages.

Fortunes are made cent by cent

Now, let’s assume instead of the 10K example, I tell you that your bank charges about 1% per transaction. It’s little, right? What’s one dollar for every hundred you move? The bank has to make money, so it makes sense they’ll charge.


Yet it adds up. That means that if you move only a thousand dollars a month using your bank account – a small amount of money – you’re paying your bank $10 a month. Which amounts to $120 a year.


Reconsidering it yet?

Crypto to the rescue

Cryptocurrency transactions have been somewhat demonized by the media. While most claims against them aren’t false, some have been overblown or reported as inherent problems with crypto while being transient ones, results of the economy rather than poor design.


While cryptocurrency transactions can be slow – the Bitcoin and Ethereum networks both have but a fraction of the capability of Visa and Master Card – that might not be a problem for long. New blockchains are being currently developed with the aim of solving the transaction bottleneck.


As for the issue of value fluctuations – where the initial wave of worries about crypto transactions being expensive – crypto markets are stabilizing. And any cryptocurrency that enters widespread use will, by virtue of its widespread use, gain enough stability that day-to-day price changes won’t be huge.

Fairer costs at no cost

Let’s go back to the $1M example, since it’s good to illustrate just how much money you might be losing once all things add up – and let’s be clear: while you might not regularly move a million dollars, the average American moves more than a million dollars through their lifetime.


On the Bitcoin network, known for its scalability problem and slowness, you could move more than a hundred million dollars for the paltry sum of… ten cents.


That’s several orders of magnitude lower than those of a regular bank. As such, some of crypto’s early adopters have taken to performing their large-scale transactions through the blockchain, since whatever they lose from them taking longer, they more than make up on savings.


Not that they always take longer. Transactions inside a same bank are instant, but between banks – or countries – aren’t anyway.
The point is, using crypto you can go from 1% transaction fees to 0.01% fees.

Only one drawback…

While banks use percentages to calculate transaction costs, cryptocurrencies use a more lineal approach, usually tied not just to the amount of money but also to the current state of the blockchain.


This means charges move between smaller amounts, but depending on the blockchain they might have minimums to be paid. Over the Bitcoin blockchain, for example, the minimum amount for a transaction is ten cents.

This means that you might be able to move a hundred million for that much… but if you spend $5 on crypto for an ice cream, it’ll cost you that much, too.


Thanks to this, for now, cryptocurrencies remain a great option – for larger transfers. Their fees vary between ten cents and five dollars. This depends on the blockchain, the amount, and how busy the chain is at the time.


However, this should change. As the scalability problems are solved, transaction costs – and times – should halve. Eventually, we might see small charges for large transactions, and almost nonexistent ones for smaller ones, turning cryptocurrencies into the best way to save money overall.

Last Words


As for now, the writing is on the wall for many companies: Cryptocurrencies are a way to save money in transactions. Not only that, but they offer an alternative to dealing with regular banks, and can in some cases be faster than regular bank transfers.


It’s due to this that, while cryptocurrencies haven’t yet gained mass acceptation, several important parts of our society are actually dealing with them already. It’s just difficult to argue with a 99% reduction on transaction fees.

Security Safeguards For Cryptocurrency Transaction Management

Managing the safety of cryptocurrency transactions is possible and here is what you can learn.

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A lot of new cryptocurrency exchanges are growing daily and rapidly worldwide. With the increasing number of cryptocurrency exchanges in the world today, a lot of them are faced with the risk of cyber attack.

So, it is crucial for all investors who want to invest their money, and a lot of their money should look out for red flags when choosing cryptocurrency exchanges, as they should also do their homework and a proper background check on the cryptocurrency exchange as relating to their fees and security safeguard.

With the increasing interest of investors who are willing to trade, in this rapidly growing space, there is a need for security to safeguard cryptocurrency exchanges. Cryptocurrency exchangers are just like the e-brokerages from the investor’s standpoint.

The global cryptocurrency market has been valued above $700 billion, but the market is still lightly regulated. Some experts in cryptocurrency exchanges say people who want to invest their money in cryptocurrency should choose an exchange that suits their individual needs.

Generally, any good cryptocurrency exchange would offer a safeguard against money laundering, and set in some procedures to know their customers, like a cell-phone application for trading and tracking the price, and a quick and easy way to move cash between bank account to the site’s wallet.

But beyond these universal must-haves, there are still some key consideration that needs to be set in place to ensure ease of use and security.

Disaster Mitigation

Many exchanges have several servers that are hosted at different locations preferably different countries, just to be safe. As the popular saying goes, “never put all your eggs in one basket”.

Disaster mitigation of cryptocurrency exchanges in simple terms is best understood as the process of responding to a major failure or let down of the system as the system switches to another server that is being hosted in another location.

The disaster could be natural or man-made, so incorporating cryptocurrency to managing and mitigating disaster is attainable.  Let us assume that there is a hack, and the attacker gained full control of the entire infrastructure of the exchange.

Using false user pairing, the attacker can easily trick the 2FA user channel. But even when the hacker injects false user pairing into the HSM, perhaps the HSM fails its periodic consistency check, it will automatically shut down the signing plug-in until reactivated by an administrator.

Basically, the shutdown of the server is to ensure that the hacker stays out of the server if a server is hacked or broken; and during this time the exchanger has to switch to its other servers, to ensure continuity of trades.

For example, Binance has multiple servers offshore, even though they have multiple offices in Asia. Their servers allow them to be able to handle more than 130 coins consistently, and if a server gets broken, they rely on the other servers while they fix the broken one without causing a halt to any trade.

Exchanges Server Distribution

Basically, cryptocurrency do not have a central computer, but they are distributed across a network of typically thousand or computer. A network without a central server is called a decentralized network. Since cryptocurrency has no central computer, it means no third-party escrow intermediary is required to hold the funds of the customers in the exchange process.

Due to cryptocurrency decentralized network, transactions are faster and at a cheaper rate. The removal of the third part authenticator actually reduced the charging rates and the lag time before a transaction is processed.

The distributed servers of the cryptocurrency exchanges have made this system even more difficult to potential malicious hacks. Because of the decentralized network, every entry points that hackers could have used to hack the system have been blocked. Meaning for a hacker to get into the system, they have to compromise more than half of the whole network.

Overseas Server Location

 In other for an exchange to further improve, they engage themselves in acquiring some foreign servers. Some bit exchangers like coinbase, bitterex and the likes, makes use of cloudflare for caching. And cloudflare has servers in most part of the world.

So, you may notice that perhaps you are in say Europe, and you are making connections to servers in the United State of America, when there is a closer server to your location, say probably in Sofia (Bulgaria), or Belgrade (Serbia).

Safeguarding Cryptocurrency Transactions

A lot of cryptocurrency exchanges are keeping the vast majority of about 97% of its assets in a cold storage. This is the best protection they can have. The underlying ideology behind this is to get their assets totally offline, out of the reach of hackers.

But despite this, to properly function normally, they still need to have a type of wallet they can use to connect online with their users. The wallet cryptocurrency exchanges use to connect with its user online is called a hot wallet.

 The hot wallets are controlled with APIs, and the hot wallet is used to approve the order of customers who want to withdraw of deposit in their accounts. Because this cryptocurrency exchanges have to validate the transaction of its users with their wallets, the keys must be live.

Transaction Authentication

In a transaction authentication of a cryptocurrency, the wallets are designed with specialized software that can calculate the balance of the user by keeping track of all incoming and outgoing payments. The wallet is also designed to calculate the fee that the user would pay to the miners of the network to confirm or authenticate the transaction.

 Once a user sends a certain amount of cryptocurrency, the transaction gets broadcasted across networks, and within a few seconds the receiver would see a pending transaction on his or her wallet.

Then a miner would add the transaction and mine a block which includes the transaction. Once enough blocks have been mined, the transaction would be confirmed with ease.

Cryptocurrency offers a new frontier for many investors around the world, and there is no doubt that with the necessary safeguards in place, it can be a veritable goldmine.