Author: Uptick Translation: Huohuo, Plain Language Blockchain
LianGuaiyLianGuail recently announced the launch of its stablecoin LianGuaiyLianGuail USD (PYUSD), which is built on the Ethereum blockchain in collaboration with LianGuaixos. The stablecoin will be primarily used on the LianGuaiyLianGuail platform and Venmo, a social payment service owned by LianGuaiyLianGuail. One of the main features of PYUSD is that it can be converted with other cryptocurrencies offered on the LianGuaiyLianGuail platform and can also be transferred to LianGuaiyLianGuail or external accounts.
In comparison, Circle has been offering its stablecoin USD Coin (USDC) since 2018. Like PYUSD, USDC is built on the Ethereum blockchain and is fully backed by US dollars held in reserve accounts. The design purpose of USDC is primarily for use on the Circle platform, and it can also be converted with other cryptocurrencies offered on the Circle platform and transferred to Circle or external accounts.
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1. Development Differences
One of the main differences between PYUSD and USDC is their development. PYUSD is developed in collaboration with LianGuaixos, while USDC is developed by Circle. Both companies are well-known in the cryptocurrency field and have been around for years, but their approaches to stablecoin development differ slightly. For example, PYUSD intends to release monthly public attestations conducted by independent third-party accounting firms in accordance with the standards set by the American Institute of Certified Public Accountants (AICPA). This is in contrast to USDC, which undergoes regular audits by the independent accounting firm Grant Thornton, LLP to verify that the circulating amount of USDC tokens is fully backed by the corresponding amount of USD reserves.
Another difference between PYUSD and USDC is their intended use. PYUSD is primarily designed for the LianGuaiyLianGuail platform and Venmo, while USDC is primarily designed for the Circle platform. This means that PYUSD may be more appealing to LianGuaiyLianGuail and Venmo users, while USDC may be more appealing to Circle users.
2. How Stable are These Stablecoins?
In terms of stability, both PYUSD and USDC are designed as stablecoins, which means they are pegged to the US dollar and maintain a stable value over time. This is achieved by holding a corresponding amount of US dollars in reserve accounts to back each token. However, it is worth noting that stablecoins are not immune to price fluctuations and may face similar risks as other cryptocurrencies.
In summary, both PYUSD and USDC are Ethereum-based stablecoins fully backed by US dollars and use smart contracts that allow freezing and seizing of tokens. However, there are some differences in their development, auditing, and intended use, which may make one more appealing than the other depending on the user’s needs. For example, PYUSD’s collaboration with LianGuaixos and monthly public attestations may make it more appealing to users who value transparency and accountability, while USDC’s regular audits by independent accounting firms may make it more appealing to users who prioritize stability and security.
3. Transparency and Regulation
PYUSD and USD Coin are both regulated by financial authorities. For example, PYUSD is regulated by the New York State Department of Financial Services (NYDFS), and USD Coin is regulated by the U.S. Department of the Treasury. This means that both stablecoins must comply with certain regulations and guidelines to ensure transparency and security.
4. Fees and Transaction Speed
One of the main advantages of stablecoins compared to traditional payment methods is their low fees and fast transaction speed. Both PYUSD and USD Coin have lower transaction fees compared to traditional payment methods. However, USD Coin has a slightly faster transaction speed compared to PYUSD. This may be an important factor for users who require fast transaction times.
5. Conclusion
In summary, stablecoins are becoming increasingly popular choices for users who want to hold cryptocurrencies without being affected by the price volatility of other cryptocurrencies. PYUSD and USDC are designed to provide long-term stable value and can be easily traded on their respective platforms. As with any investment, it is important for users to conduct their own research and consider their own needs and risk tolerance before deciding which stablecoin to use.
PYUSD:
– Developed in collaboration with LianGuaixos
– Built on the Ethereum blockchain
– Fully backed by deposits of US dollars, U.S. Treasury bonds, and other cash equivalents
– Smart contracts allow for token freezing and confiscation
– Intends to release monthly public attestations from independent auditing firms in accordance with standards set by the American Institute of Certified LianGuai Public Accountants (AICLianGuai)
– Can be converted to and from other cryptocurrencies available on the LianGuaiyLianGuail platform
– Can be transferred to LianGuaiyLianGuail or external accounts
– Venmo, a payment service owned by social media LianGuaiyLianGuail, will also adopt the new stablecoin
USDC:
– Developed by Circle
– Built on the Ethereum blockchain
– Fully backed by US dollars held in reserve accounts
– Smart contracts allow for token freezing and confiscation
– Regularly audited by independent accounting firm Grant Thornton, LLP to verify that the number of USDC tokens in circulation is fully backed by corresponding reserves of US dollars
– Can be converted to and from other cryptocurrencies available on the Circle platform
– Can be transferred to Circle or external accounts
– Currently has a market capitalization of $26.47 billion
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