Hello everyone, Bilal is here to talk to you. Undoubtedly, in the modern digital world in general, and those interested in cryptocurrencies in particular, most people are familiar with the widespread stablecoins. Most may not even be aware that there are promising stablecoins that they may not have heard of for one reason or another, and this is what I will explain in this article.
First, we must understand what stablecoins are.
Stablecoins are currencies designed to maintain a fixed value and are pegged to a real currency, such as the US dollar or the euro. They combine the stability of traditional currencies with the fluidity of modern digital currencies. A well-known example of this is USDT, known as Tether, which is backed by a US dollar reserve of over $150 billion. There is also USDC, which has a market capitalization of over $60 billion. These currencies are centralized.
Slightly different from the above, there is a decentralized stablecoin on Ethereum called Dai. This brings us to the heart of our topic: introducing a decentralized stablecoin, HBD, built on the Hive blockchain.
Second, what is Hive and HBD?
There's something known as the Hive blockchain, and its native cryptocurrency is Hive. It's a fantastic decentralized platform that hosts decentralized applications. It also hosts social content through decentralized blogs that generate value and rewards through upvoting good content and earning Hive and HBD tokens. This system also allows users to deposit their Hive tokens and convert them into power to influence governance and earn regulatory rewards. HBD is considered a supporter of the US dollar. It's a decentralized stablecoin integrated into Hive, whose goal is to maintain a price close to the US dollar without a central bank or issuing authority. The core of HBD's operation revolves around algorithmically linking it to a price of one US dollar through multiple on-chain transactions. You can instantly convert between Hive and HBD, or vice versa.
Third, the reasons for HBD's lack of popularity
One of the most important reasons is that it isn't traded on major exchanges like other stablecoins like USDT or USDC. It's primarily confined to the Hive ecosystem, so its popularity is limited among cryptocurrency users. Despite its great features, it's considered a decentralized stablecoin supported by social governance. In addition to its smooth and fast transactions within Hive, it's free of fees. It also allows for interest-earning through savings, and it's stable in its linkage via on-chain economic rules.
Final Words
What I like about HBD is its simplicity and the fact that it's supported by social governance without any interference from any other central parties. HBD is a very good and smart option for securing a specific value while using Hive. Their excellent integration makes them a suitable choice.
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