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USD Coin (USDC)

Maxbit Support
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What is USD Coin (USDC)?

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  1. Native Blockchain:
    • USDC originally launched on the Ethereum blockchain, making use of Ethereum's ERC-20 token standard. However, as part of its multi-chain strategy, USDC has expanded to other blockchains, including Algorand, Solana, and Stellar.
  2. Consensus Protocol:
    • USDC doesn't have its own consensus protocol as it operates on top of existing blockchains like Ethereum, Solana, and Algorand. The consensus mechanism depends on the underlying blockchain. For Ethereum, it's currently a hybrid of Proof of Work (PoW) and moving toward Proof of Stake (PoS) with Ethereum 2.0
  3. Trilemma (Security, Speed, Scalability):
    • Security: USDC's security is derived from the underlying blockchain it's issued on. For example, on Ethereum, it benefits from the network's decentralized and robust security features.
    • Speed and Scalability: The transaction speed and scalability of USDC also depend on the underlying blockchain. On Ethereum, it might face congestion issues, while on blockchains like Solana, USDC transactions can be faster and more scalable.
  4. Founder / Date Founded:
    • USDC was introduced in 2018 by CENTRE, a collaboration between Circle and Coinbase.
  5. Objective / Use Case:
    • USDC is a stablecoin, meaning its value is pegged to a stable asset, in this case, the US Dollar. It combines the transactional properties of cryptocurrencies with the stable value of the dollar. It's used for trading, transactions without the volatility of other cryptos, and as a gateway between fiat and other digital assets.
  6. Total supply/ Limit or Unlimited:
    • The supply of USDC is dynamic and corresponds to the amount of US dollars that are deposited as collateral. For every USDC token in circulation, there is a US dollar held in reserve, ensuring the token maintains a 1:1 peg with the US dollar. The supply can expand or contract based on demand.
  7. Supply Deflation:
    • USDC doesn't follow a deflationary model. The number of tokens in circulation is based on demand and can increase or decrease, but always in correspondence with an equivalent amount of US dollars held in reserve.

          This overview should furnish beginners with a basic understanding of USD Coin and its unique position in the cryptocurrency landscape. Given the dynamic nature of the cryptocurrency space, it's always crucial to stay updated on the latest developments and news.

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