Exploring the Use-Cases of Smart Contracts
Stable coins are cryptocurrencies pegged to a stable asset (usually to some fiat currency or real estate). The main motive is to avoid volatility by pegging them to real-world assets. Volatility is considered one of the biggest obstacles to most popular cryptocurrencies such as Bitcoin and Ethereum.
A Stable coin gained popularity because of its high speed and transparent transactions making it highly attractive to users. A stable coin maintains its stability and is, therefore, being adopted by many. Stable coins are being accepted worldwide and have a range of supporting use cases. Read more to find out about the use cases of Stable coin.
Use Cases of Stable coins
- Trading: Stablecoins allow easy crypto trading between cryptocurrencies and fiat currency at low costs. Due to the regulations, there are a few crypto exchanges that support fiat cryptocurrencies. The Stable coin solves all these complications.
- Payroll: Over a while, the ways of operating MNCs have been changed. You can pay your workers with stable coins. International workers can quickly get paid without any high transaction fees. Workers working away don’t have to wait to get paid.
- Escrow: Stable coins work based on smart contracts that automate the Escrow system. The Escrow service makes the transaction faster, easier and secure. It eliminates the need for any third-party involvement. Without any third-party involvement, the transaction fee goes down and the speed increases.
- Safe Assets: Stable coins are safe assets. These are designed to have a stable value over time. Unlike any other cryptocurrency, the price of the stable coin does not fluctuate and has no risk of losing value. Price stability and self-custody make a stable coin a safe haven asset
- Payments: These blockchain-based payments are gaining popularity in the market. These have been proved as a useful means of payment in stores and other such services. Blockchain offers cheaper, faster, and more efficient transactions.
- Banking: The crypto wallet offers an alternative to banks. Since wallets are easy to set up compared to bank accounts, you only need a mobile phone and an internet connection. This unique ability of the stable coin can bring several users.
- Lending: The demand for the stable coin has increased over the period both financial investors and institutions are fueling the demand in the global market. A stable coin provides high opportunity earning to traders and investors. These offer double-digit interest rate returns.
A stable coin is a key to removing volatility in the cryptocurrency. A stable coin is pegged to a digital asset (fiat currency) which makes its value highly reliable compared to traditional cryptocurrency. One of the greatest benefits of cryptocurrency is decentralisation. A stable coin offers stability and decentralisation more benefits than a cryptocurrency.
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