What Are Stablecoins?

English

A stablecoin cryptocurrency, or just stablecoin, is a non-native cryptocurrency or ERC-20 token inside a programmable or smart contracts blockchain that is pegged or associated to a national currency, such that 1 token equals 1 unit of the national currency.

These tokens or cryptocurrencies are called "stablecoins" because they are always worth 1 unit of the underlying national currency despite market conditions.

Examples of these stablecoins may be DAI, USDT, and USDC, which are all worth $1 because they are pegged to real US dollars deposited in a bank account or are guaranteed by other crypto assets to be worth $1 all the time.

See also

What Are Smart Contracts?

Smart contracts are a type of software programme conceptualized by Nick Szabo in 1994. They are software programmes that act autonomously on the internet to execute certain roles to aid in economic tr...

What Is Wrapped Ethereum (WETH)?

Ether (ETH) is the native token of the Ethereum blockchain and wrapped Ethereum (WETH) is a 1 to 1 representation of ETH but in an ERC-20 token format. When you transform ETH into WETH, 1 WETH is wor...

What Is a Dapp?

What are apps? When you use your computer or phone and you use software programmes like Facebook, Instagram, PayPal, SnapChat, Excel, Word, or Gmail, those are what are called "applications" or "apps"...

What Is an NFT?

The term NFT stands for Non-Fungible Token Standard. The smart contract standard of NFTs is the ERC-721. They are decentralized programmes on a programmable blockchain. Instead of being an ERC-20 sta...

What Is a DAO?

DAOs are code on the blockchain that represent organizations of people to get together for different objectives. In the future DAOs may be recognized legally as legal persons of many types. The term "...

What Are Stablecoins?

A stablecoin cryptocurrency, or just stablecoin, is a non-native cryptocurrency or ERC-20 token inside a programmable or smart contracts blockchain that is pegged or associated to a national currency,...

What Is an ERC-20 Token?

An ERC-20 is a non-native cryptocurrency inside a programmable or smart contracts blockchain. Because in smart contracts or programmable blockchains people can create any types of software programmes ...