Cryptocurrencies may be one of the biggest applications of blockchain yet. But cryptocurrency has its own problem: volatility in the market. Trading price varies over time and has no specific range on how high or how low it will be. The rise and fall of the value of cryptocurrencies are on a wave of unpredictability.
However, stablecoins aim to change this by pegging the digital currency value to another asset. Tether was the largest stablecoin in February and was scrutinized regarding its transparency and credibility.
People who proposes about stablecoins focus on alternative methods to maintain the stability of cryptocurrency values in the blockchain technology. This process is the backing of each cryptocurrency with another crypto asset. It therefore relies on smart contracts rather than private accounts. This method allows price stability without really compromising the credibility of the cryptocurrency. This and with the help of more innovative minds, open the door for more innovations and possibilities through stablecoins in the future.