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Picture Source: Wes Levitt

Alongside usability, volatility* is one of the largest inhibitors to mainstream cryptocurrency adoption. Stablecoins have the potential to make payments anywhere as easy, fast, and cheap as sending an email while ensuring that your purchasing power remains intact.

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Stablecoins avoid the short-term purchasing power volatility you see with, for example, Bitcoin above. Source: Messari.io

The potential of stable value digital assets has caused an explosion of experimentation over the last four years. There are three broad types of stablecoins: fiat collateralized, crypto collateralized, and Seigniorage-style*.

Fiat-backed stablecoins are backed by off-chain assets like the US Dollar. The collateral is typically stored with a bank or custodian. …

In follow-up to the recent Medium Post How Much Could You Earn on Celo?, we’d like to provide a month-by-month breakdown of the anticipated circulating CELO (Celo’s Native Asset) post-Mainnet release.* As anticipated allocations are partially dependent upon on-chain governance and foundation grants to optimize for the long-term sustainability of the network, the indicative figures below are best estimates of anticipated CELO allocation.

For the purpose of this article, circulating supply is defined as the best approximation of the number of digital assets that are circulating in the market (see source). …

The comment I receive most on why Bitcoin won’t work is its significant energy consumption. Most comments sound something like, “If Bitcoin were a country, it’d rank XXth in terms of energy consumption. There are many more energy efficient alternatives for reaching consensus1.” While Bitcoin’s energy consumption is indeed impressive, I will make the case for why this energy consumption is necessary for Bitcoin as “digital gold.”

The purpose of proof of work (PoW)2 is to secure the network and create energy-dependent immutability. Bitcoin produces work for securing a global currency worth approximately USD 200 billion at the time of this writing. The more energy and therefore hashing power3 that is committed to that security, the more secure the network is and the harder it is to attack the network. In the Bitcoin protocol, hashing4 is used as part of the mining process to write new transactions. Therefore, if over 50% of the hashing power is achieved, the attacker could theoretically write fraudulent transactions. …


Alex Witt

Finance @ cLabs, shaping Celo

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