Leverage Programmable Opportunities Provided by Stable Assets, Rather Than Competing with CBDC
On April 25th, Cointelgraph reported that in providing stable value, stable currency and Central Bank Digital Currency (CBDC) seem to be two sides of the same coin. However, encryp
On April 25th, Cointelgraph reported that in providing stable value, stable currency and Central Bank Digital Currency (CBDC) seem to be two sides of the same coin. However, encrypted stable assets can provide completely different use cases, and CBDC cannot compete with them at all. The key is programmability, as smart contracts can automate and add new features to currencies. Programmability allows for asset support and decentralization, which is not possible in current CBDC design. Developers should leverage the programmable opportunities provided by stable assets, rather than attempting to compete with CBDC.
Viewpoint: Compared to CBDC, the key advantage of stable currency lies in its programmability
Introduction
On April 25th, Cointelgraph reported that stable currency and Central Bank Digital Currency (CBDC) seem to be two sides of the same coin, as they both aim to provide stable value. However, the article argues that encrypted stable assets offer completely different use cases that CBDC cannot compete with. This is because of the key advantage of programmability, which allows smart contracts to automate and add new features to currencies. In this article, we’ll explore the programmable opportunities provided by stable assets and why developers should focus on leveraging them instead of competing with CBDC.
What are Stable Assets?
Stable assets are a type of cryptocurrency that maintain a stable value against another asset or fiat currency. This is achieved through various methods such as pegging to a fiat currency or using a collateralized system. Stable assets provide stability to cryptocurrency users who may be wary of the high volatility associated with traditional cryptocurrencies like Bitcoin.
CBDC and its Limitations
CBDC is a digital form of fiat currency created and issued by the central bank of a country. CBDC aims to provide all the benefits associated with blockchain technology while maintaining the stability of fiat currency. However, CBDC is limited in its capabilities as it is not programmable like stable assets. This means that CBDC cannot be used to build decentralized applications or execute smart contracts.
The Advantages of Programmability in Stable Assets
Stable assets are programmable, enabling developers to automate and add new features to the currency. This opens up a plethora of use cases that CBDC cannot match. One use case is creating decentralized finance (DeFi) applications. DeFi allows users to access financial services like lending, borrowing, and trading without intermediaries. Stable assets enable DeFi developers to create decentralized stablecoin lending platforms.
Programmable stable assets can also be used to create decentralized prediction markets. Prediction markets allow users to bet on the outcome of events and earn rewards for making accurate predictions. With programmable stable assets, these prediction markets can be created without the need for intermediaries, making them more accessible to everyone.
Decentralization and Asset Support
Decentralization is an essential benefit of programmable stable assets. Decentralization refers to a network’s ability to operate without a central authority, which improves security and prevents censorship. Stable assets that are built on decentralized networks are more secure than centralized alternatives like CBDC.
Programmable stable assets also enable asset support. Asset support refers to the ability of a currency to represent other assets. For example, gold-backed stable assets enable users to buy and sell digital gold without having to worry about the storage and security of physical gold.
Conclusion
In conclusion, programmable stable assets offer a range of use cases that CBDC cannot match. Developers should focus on leveraging the programmable opportunities provided by stable assets to build decentralized applications rather than competing with CBDC. Stable assets provide stable value, decentralization, and asset support, making them an attractive alternative to centralized CBDC.
FAQs
1. What is the difference between stable assets and CBDC?
Stable assets are programmable and can be used to build decentralized applications, while CBDC is not programmable and has limitations in its capabilities.
2. What are some examples of decentralized applications that can be built using stable assets?
Decentralized finance platforms and prediction markets are examples of decentralized applications that can be built using programmable stable assets.
3. Are stable assets secure?
Stable assets that are built on decentralized networks are more secure than centralized alternatives like CBDC, as they operate without a central authority. However, it’s important to note that security risks exist in all forms of cryptocurrency.
This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/19096/
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Recommended articles
-
Bankruptcy Judge Rules in Favor of Voyager Digital’s Transaction with Binance.US, Overruling USSEC Objection
It is reported that the bankruptcy judge of Voyager Digital chose to allow the transaction with Binance.US despite the objection of the United States Securitie…
-
Cryptocurrency Market Sell-off: Ethereum and Bitcoin Take a Hit
According to the report, according to the data of Coinglas, the whole network has sold out 168 million dollars in the past 24 hours, including 46111000 dollars in Bitcoin and 70822400 dollars in Ethereum. Over the past 24 hours, the whole network sold out 168 million dollars Analysis based on this information:The recent report from Coinglas, which reveals that the cryptocurrency market has sold out $168 million in the past 24 hours, is a clear indication of the ongoing sell-off in the market. The market’s top cryptocurrencies, Bitcoin and Ethereum, have both experienced a significant dip in their respective trading volumes, with Bitcoin sales accounting for $46.1 million and Ethereum sales at $70.8 million. While the overall figure of $168 million may seem staggering, it is important to understand that the cryptocurrency market is highly volatile and can experience sudden fluctuations in value. Investors in this market are used to such sell-offs and are expected to weather the storm. However,…
-
Voyager Digital Denies SEC’s Allegation about VGX Token as Securities
It is reported that according to the latest court documents submitted by the encryption lender Voyager Digital, Voyager denied the SEC\’s allegation that \”its n…
-
What is Wikipedia Coin (Is Wikipedia Content Real)?
Wikipedia Coin is a token issued by the blockchain project WhaleAlert. It is a v
-
Anchorage Digital Lays off 75 Employees, but Anchorage Digital Bank Remains Unaffected
On March 15th, Anchorage Digital announced today that it would lay off 75 employees. However, a spokesperson for the company said that its digital asset banking subsidiary, Anchorage Digital Bank, which is regulated by the United States Office of the Comptroller of the Currency, would not be affected by the layoffs, and that customer assets would not be at risk due to the recent failures of the crypto friendly banks Silvergate Bank and Silicon Valley Bank. Anchorage Digital: Banking subsidiaries will not be affected by layoffs Analysis based on this information:Anchorage Digital, a leading cryptocurrency custody and trading platform for institutional investors, has announced that it will let go of 75 employees. However, the company has ensured that its digital asset banking subsidiary, Anchorage Digital Bank, which is regulated by the United States Office of the Comptroller of the Currency (OCC), will not be impacted by the layoffs. Moreover, the spokesperson stated that Anchorage Digital Bank will continue to provide…
-
IOVLabs Introduces RIF Flyover to Enhance Rootstock Infrastructure
On February 22, according to the official statement shared by IOVLabs, its new \”repayment agreement\” RIF Flyover has been released to optimize the design of th…
-
Why Trade Coins to Make Money (Why Trading Coins Always Ends in Loss)
Why trade coins to make money? Because you can earn money and have more options
-
Noxx to Rebuild ZKP Circuit with Aztec Network Grant
On April 28, it was reported that Noxx, the salary and compliance tool, announced that it had received a donation from Aztec Network Grant. Noxx will use this grant to rebuild its
-
Launch of Audited Upgraded Version of Polygon zkEVM Test Network
On February 24, Polygon Labs will launch the audited upgraded version of Polygon zkEVM test network next week. The test network will be almost the same as the …
-
Massive Bitcoin Transfer Signals Increased Investment Activity
It is reported that 2030 BTCs were transferred from unknown wallets to Coinbase at 09:24 today, with a value of about US $48.13 million.
About USD 48.1…
-
What is eos.io (What does eosinophiles mean)
eos.io is a decentralized cloud storage platform based on EOSIO, according to o
-
The zkSync Era Blockchain: An Overview of the Recent Main Network Shutdown
On April 1st, according to the zkSync Era blockchain browser, it is suspected that the main network of zkSync Era is down. The latest batch submitted by zkSync Era to Ethereum is #
-
**Token’s Data Unlocking Week of April 24th to April 30th 2021**
According to reports, according to Token. Unlocks data, the following tokens are about to be unlocked this week (April 24th to April 30th). Among them, at 08:00:00 on April 27th, 4
-
Understanding the Benefits of Using Gize Protocol Technology on the Ethereum Layer 2 Network
According to reports, the Ethereum Layer 2 network Starknet announced on social media that it has decided to use license free Gize protocol technology during the latest community c
-
CZ responded to CNBC’s well-known host’s statement “not doing business with Coin An”
According to reports, Jim Cramer, host of CNBC\’s financial program Mad Money, targeted Coin On, the world\’s largest cryptocurrency exchange, on social media. He said he would not d
-
Why is an imtoken wallet safe
Why imtoken wallets are secure introductions In the blockchain field, imtoken wallets are currently one of the most secure ways to trade and store digital assets. By managing and ensuring user funds, IMTOKE Wallet will provide comprehensive security services and solutions for digital currency exchanges, project parties, and other relevant institutions Is imtoken wallet good?Recently, imtoken wallet suffered a hacker attack and lost about $100 million in BTC (over $10 million at current prices) Regarding this, some users have reported that the website has serious security vulnerabilities, and if imtoken wallets are used, asset transfers can be carried out. What exactly is the ImToken wallet like? How does imtoken achieve a “0Gas fee”? Why can imtoken be so good? Imtoken is a wallet that supports multiple DApps, runs and manages millions of tokens on the Ethereum blockchain, and has been adopted by more than 200 exchanges and project parties. However, its main products are NFT based on Ethereum, decentralized Stablecoin…