Fast understanding of USDN-the most popular decentralized stablecoin
Before delving into the decentralized stablecoin, let’s answer one question: What is a stablecoin?
Stable currency is a type of cryptocurrency, but it is different from most cryptocurrencies. The value of stablecoins is linked to the legal currency of one country or multiple countries. Moreover, there are some stablecoins that are also linked to physical assets. Therefore, stablecoins are cryptocurrencies whose value is backed by one or more financial assets.
At present, there are four main types of stablecoins on the market which include legal currency mortgage stable currency, commodity mortgage stable currency, encrypted asset mortgage stable currency, and algorithmic stable currency.
USDN is an algorithmic stablecoin as described above. It is a stable currency in the NGK blockchain, which is mainly used for the value reserve and value exchange of all contracts in the blockchain, and is also used to promote the NGK blockchain. All users can purchase block producers computing power through USDN to participate in the block producer mining mechanism. At the same time, DAPP merchants or enterprises in NGK can also use USDN to solve the payment problems of global users and the circulation problems between various industries.
The smart contract is automatically executed to control the price of USDN. When the price of USDN falls below 1 U.S. dollar, the smart contract will burn this part of the stable currency USDN and issue bond certificates at a price of less than 1 USDN. If the price of USDN rises by more than 1 U.S. dollar, the smart contract will automatically issue additional stable currency USDN to redeem bond certificates in the market.
Based on the abovementioned, we can find that USDN has stable performance, but only based on stable performance. USDN still does not have core competitiveness. Therefore, after careful research, the development team turned USDN into an application coin for payment and clearing in more application scenarios. In this way, USDN has both application performance, payment performance and algorithm performance. At the same time, through the underlying architecture of the NGK blockchain, USDN is given a faster transaction speed, which also means that it can be applied to various scenarios and produce a faster circulation speed.
In addition, USDN is also a decentralized stablecoin, and its operations and funds are very transparent, so users can rest assured of the entire operation process.
At the same time, the stablecoin USDN also plays a very important role in the encrypted trading market. Traders and crypto enthusiasts who are worried about the volatility of cryptocurrencies can participate in the crypto industry through the stablecoin USDN. Enthusiasts of cryptocurrencies can hold the stablecoin USDN because it is not as volatile as other cryptocurrencies.
