What is USD Coin USDC and which type of coin is this
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What is USD Coin (USDC)and which type of coin is this?
TheUSD coin (USDC) is a digital stablecoin pegged to the US dollar. It works onthe Ethereum, Stellar, Algorand and Solana blockchains. USDC was initially created by theCenter Consortium, which includes its two main founding members, Circle andCoinbase. Each USDC token is held in a $1 reserve and is regularly audited byGrant Thornton, a major accounting corporation.
USDC waslaunched in September 2018, and during March 2021 it was announced that Visawould facilitate the use of USDC for settlement on its payment network. USDCis a stablecoin that runs on the Ethereum blockchain and many others.It is pegged to the US dollar. Like the stablecoin Tether (USDT) mentionedabove, USDC is priced at one US dollar – a guaranteed 1:1 ratio making it astable form of exchange.
As thecrypto ecosystem has evolved, so has the proliferation of various stablecoins,and many are now an essential part of the market. How a stablecoin maintains itsstability – known as its peg – is dependent on its infrastructure. Stablecoinscan be issued by a centralized institution or collateralized in a decentralizedmanner. They may also use one of several algorithmic mechanisms to maintain aconstant value.
The goal ofhaving a stablecoin like USDC is to make transactions faster and cheaper. Whilethere are questions about whether the Tether stablecoin is fully backedby US dollar reserves, some investors believe USDC is more transparent: itsreserves are monitored by a global accounting firm, Grant Thornton, LLC.