What is USDN stable coin? What is the application value of USDN?
The Office of the Comptroller of the Currency (OCC) issued a stable currency guide on September 22, the main content is about the regulation of stable currency and related regulations. For a while, stable coins have received widespread attention in the market. So, what is a stable currency? What is the USDN stable coin？
1. What is a stable coin?
The role of stable currency in all digital currencies is very important, because it can solve the transaction and storage needs of various users, and will not cause large fluctuations due to the impact of the big market. At present, the vast majority of stable coins on the market are anchored by collateralizing U.S. dollars to institutions.
The NGK.IO public chain also issued a stable coin USDN. So, what is a USDN stable coin?
2. What is USDN stable coin
USDN is a stable currency in the NGK.IO blockchain and a new type of stable currency that combines computing power. USDN is mainly used for the value reserve and value exchange of all contracts in the public chain to promote the NGK public chain. It could be used to purchase block producer of computing power to participate in the block producing of mining mechanism.
In NGK.IO, there will be many DAPP merchants or enterprises. In the payment of global users and the circulation of various industries, various problems will arise due to the difference in payment currencies. At this time, USDN is equivalent to the medium, it could effectively solve these problems.
3. Advantages of USDN
Compared with the USDT (Chinese name: TEDA Coin), USDN has its own unique advantages.
Although USDT is a stable currency, it was issued in a private company. It suffered a crisis of trust again recently and was nicknamed an “unstable of stable currency”. Its centralized model is pronging risks to company bankruptcy, asset freezing, and company runaways.
The decentralized model of USDN makes it non-tamper-able, fair, and transparent, and therefore more secure. Moreover, USDN has abandoned the traditional stable currency mortgage method and is more stable in the smart contract algorithm, and there is no risk brought by the centralized model.
4. Application value of USDN
①Self-support value
With the advancement of the public chain 3.0 NGK project, the audience of USDN will be further expanded and widely recognized by the market
② Transaction value
NGK and USDN can be exchanged for a value between the two tokens. Users could exchange their USDN for NGK and pay for goods on the DAPP platform to accelerate the circulation of the DAPP industry.
③ Capital value
USDN enriches and perfects the entire ecology of NGK, and could be used as a fund reserve for the NGK.IO public chain. The construction of the NGK.IO public chain provides USDN with a good springboard. Together with the capital support of the eight major sectors, USDN has formed a closed commercial loop with various companies.
④ Supply and demand value
NGK and UDSN will be launched on more exchanges to realize value exchange with various mainstream currencies.
⑤ Industry circulation value
The initial purpose of USDN being applied is to break the barriers of international trade, so it will be applied in many enterprises to realize high-speed, efficient and low-cost payments.
