Ethereum Blockchain Network is Benefitting from the Stablecoin Boom: Why?
You can get all the big stablecoin names in the market right now: TrueUSD( TUSD), Circle Coin (USDC), Gemini Dollar (GUSD) and Paxos (PAX) are all based on the Ethereum blockchain. They are all fully audited, regulated and more transparent than Tether, which has been made them more useful for customers all around the world.
Why Use Ethereum?
CCN has recently written a story on this subject and it has argued that by deploying the Ethereum protocol to create the assets, the compatibility of the assets increases. This is true. These new tokens can be used in popular wallets like Trezor and Ledger that are compatible with Ethereum-based tokens.
The Coinbase team, which has recently integrated Circle’s USD Coin (USDC) in its wallet has affirmed that ETH-based tokens can send big quantities of money in small transactions fast and that the network is useful and easy to integrate. This means that the integration is easy without needing a whole new infrastructure to support them.
As it is always been easier to use existing infrastructures than to create your own, so part of the reason is the whole movement of simply using ETH instead of something new. If it works and it is easy, why not? The technology is good and already widely used, only somewhat lacking scalability, a problem that is being solved by a third party now, which makes things even easier.
With the original Ethereum developers trying to solve these problems, you do not even need to spend your own resources to solve important issues like these, which makes the idea of using ETH as a base even more attractive.
Ethereum-based products are also very easy to program because the developers will not need to use any new code at all, only the current one. You can also, as CCN affirmed, use Etherscan to track the circulation of the tokens. They can use smart contracts, too, and be more transparent. ETH is, because of all this, a good choice.
Even Gemini has talked about all the advantages of the Ethereum blockchain, so it is clear that all these companies have a preference for this technology instead of using others.
Is ETH The Future?
Are ERC20 tokens the future of stablecoins? Technology evolves very fast so it is very hard to actually pinpoint an answer for this question but one has to take notice that ERC20 tokens are offering most of what stablecoins need at the moment, so this is a good headstart against other types of technology.
Independently from the technology that will be future, it looks like Ethereum will be the technology now as all signs show that Tether, which still controls the market, is getting weaker and weaker over time.