Kowala kUSD Autonomously Stabilized Cryptocurrency Protocol
The invention of the Ethereum blockchain protocol has made it easier than ever before for developers to release their own programs on the decentralized, public ledger. Most notably, this has led to the creation of thousands of altcoins on the quickly-growing exchange market. The appeal of a new currency is twofold. First, many coins are linked to the facilitation of a new company in the form of an ICO, and consequently represent an investment or an entry fee to a future service.
For many, however, new coins present daring new innovations to existing blockchain technology. Minor adjustments to the existing tech can have drastic implications for the usability and applications of the currency being created. Because of this, many cryptocurrencies that have been created in recent years are perfect investment for speculators looking to turn a profit on an innovative new form of payment.
Cryptocurrency Volatility Problem
However, cryptocurrencies created in this way are often incredibly volatile. Perhaps even more troubling, a plethora of scams and tricks prevalent in the emerging altcoin market continue to discourage some investors from getting more closely involved in the inner-workings of the ecosystem. While the resulting market volume and volatility can create massive profits for lucky and savvy investors, it also presents a major question: do these currencies hold any innate worth?
Kowala Tech is a company based in the Cayman Islands that has created their own decentralized currency on the blockchain. Claiming complete decentralization and anonymity, the altcoin seems to follow a similar path to its predecessors. This big selling point for kUSD, the currency, is that its creators claim it to be “a stable currency” tied to legitimate value in the U.S. Dollar.
Kowala Stability Solution
Kowala notes that no investor wants their currency to change in value at the toss of a dime. Consequently, their own cryptocurrency is “pegged to” the United States Dollar. In economics, the term “pegged” simply denotes that a currency’s exchange rate to another currency does not fluctuate but remains perpetually pegged at a one-to-one ratio.
This means that the currency, in theory, would retain the same level of stability as the United States currency. In practice, the main obstacle to maintaining this value would be getting the cryptocurrency community to recognize that the currency is worth as much as the US Dollar. If interest in a stable currency is high enough, then the price may stick.
Blockchain Innovations With Kowala
Additionally, the company promises to usher in the “next generation” of blockchain technology. Thei revision to the existing infrastructure is primarily concerned with the mining process. Highlighting how the current system pits miner against miner against one another in a race for more expensive and wasteful mining rigs, the company proposes a “cooperative network” of miners that would work together to maintain consistent profit.
Benefits Of Kowala Currency
The main draw of this currency is that it maintains the same positive attributes of a cryptocurrency—decentralization and anonymity—without falling into the volatility of other altcoins currently on the market.
If this organization is able to successfully establish a clear, non-fluctuating value for their currency, it could be huge. Millions of cryptocurrency investors all over the world would be able to use the coin as they would use fiat currency. Miners would be able to make consistent profits and investors would avoid ever having to wake up to find that their investments have fallen drastically overnight
For the cryptocurrency market, a stable currency with pegged value could inspire significant interest, return stability to some investment, and provide incentive to spending.