Introducing PegNet
One of the very exiting things being build on top of Factom is a completely new stablecoin solution that is unlike anything we have seen to date.
PegNet launched August 2019 with multi-national community of traders, miners and developers behind it.
Introducing PegNet
PegNet website
PegNet.ORGPegNet is a decentralized tokenization solution that enables you to digitally hold assets. Assets that are ‘pegged’ (stabilized) to different currencies and regular assets, such as gold and silver.
Pegnet also allows you to trade, convert and pay with these digital assets without the need for counter-parties.
Yeah, that is right. No counter-parties. Fully autonomous.
It is a fully auditable, open source stable coin network using the competition of PoW and external oracles to converge on the prices of currencies and assets.
We recommend you to visit the website or visit a Meetup.
PegNet has several unique features:
- In wallet conversion of assets. So convert from a pegged US dollar into Gold (pegged), without an intermediary like an exchange.
- Proof of Work (PoW) mining to make Oracle data secure and trusted.
- Burn and mint model of assets (conversions). If you convert you burn the source tokens into the newly create target tokens.
- Fully trustless network. Nobody is in charge or operating it.
- A unique Proof of Work hash algorithm that should be ASSIC resistant and doesn’t use as much energy as a typical Proof of Work solution.
About Stablecoins
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StablecoinsStablecoins are called by some the holy grail of cryptocurrencies. They are a technology aimed at creating cryptocurrencies pegged to the value of an asset which is considered to be “stable.”
For example, stablecoins can be pegged to the US Dollar or Euro.
Currently there are typically 3 types of stable coin solutions:
- Fiat-collateralized: these coins are an IOU
- Crypto-collateralized: these are coins which have another cryptocurrency as collateral
- Algorithmic: these coins do not rely on collateral, but rather incorporate elastic supply algorithms
PegNet is a decentralized and autonomous stablecoin network, that tracks several Fiat currencies, crypto currencies, as well as other assets, like gold, silver, oil. All within your own wallet, without having to use an exchange.
A new payment rail
So a stablecoin network solution running on top of Factom and using the FAT protocol, that can track several Fiat currencies, crypto currencies as well as other assets like gold, silver, oil. For now, 32 in total. All convertible in your own wallet without having to use an exchange.
This allows for payment solutions with automatic conversions. Or people going to stable USD or EUR from their BTC, FTC or ETH on price swings. It allows stable coin usage in smart contracts etc.
Is there no need for Exchanges anymore then? No, you still need exchanges to get out of PegNet obviously. If you want real USD some party has to convert the pegged value into the real asset.