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The Evolution of Stablecoins: From Centralized to Decentralized Options

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4 months ago

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Dubai, UAE, Stablecoins represent a significant innovation within the crypto ecosystem. Many crypto enthusiasts viewed this development as a crucial advancement in bridging the traditional finance sector and decentralized finance (DeFi), potentially attracting a more risk-averse audience to the industry. Throughout their brief existence, stablecoins have undergone changes, mirroring the community’s quest for more robust yet decentralized mechanisms.

Stablecoins are digital currencies created on the blockchain whose value is supported by collateral. While the employed collateral models may differ, stablecoins always pursue the same objective: price stability.

Fiat-backed Stablecoins

Stablecoins were created to address the volatile nature of cryptocurrencies. The initial set of stablecoins was largely centralized and tied to traditional currencies like the US Dollar or Euro. These stablecoins ensured stability by backing each coin with a 1:1 reserve of the underlying fiat currency.

Tether (USDT), released in 2014, is an example of a centralized, fiat-backed stablecoin. USDT aimed to deliver stability by reserving an equivalent amount of USD for every token it issued. This approach established trust among users, enabling them to trade and hold assets without concern for market fluctuations.

Unsurprisingly, trust issues are among the most pressing challenges of fiat-based (and typically centralized) stablecoins. Users had to rely on the issuing entity to maintain sufficient reserves and process redemptions, simultaneously raising legal and regulatory concerns. Moreover, this undermined the fundamental principle of decentralization in cryptocurrencies, as users had to depend on a single central authority.

Crypto-backed Stablecoins

Recognizing the constraints of centralized stablecoins, the DeFi community started working on decentralized options. These options sought to maintain crypto’s underlying principles while offering stable value. The search has led to the emergence of crypto-backed stablecoins, whose value is tied to another cryptocurrency. 

This innovative model promotes transparency and reduces the need for a central authority. The issuance and redemption of crypto-backed stablecoins are governed by smart contracts, thus maintaining decentralization. In addition, all transactions and reserves are openly visible on the blockchain, allowing for complete visibility and auditability of the stablecoin’s operations. MakerDAO’s DAI, introduced in 2017, is one example of a crypto-backed stablecoin.

Among the disadvantages of such a model are over-collateralization and overall complexity. Users face the challenge of over-collateralization, which requires them to lock up a greater value in collateral than the stablecoins they receive. This can limit the system’s capital efficiency. Additionally, the complexity of the mechanisms used to maintain the peg can be daunting for users to comprehend and navigate effectively.

Algorithmic Stablecoins

Algorithmic stablecoins, such as Ampleforth (AMPL) and TerraUSD (now TerraClassicUSD (USTC)), operate in a unique manner by forgoing collateral backing and instead utilizing algorithms to regulate supply based on demand. If the price shifts away from the target, the algorithm adjusts the supply to stabilize the rate.

The advantages of algorithmic stablecoins include users’ capital efficiency, as they do not require over-collateralization. They also have the potential for scalability since they are not limited by collateral reserves. However, algorithmic stablecoins face challenges in maintaining stability. For instance, the TerraUSD price dropped significantly in just two weeks and never recovered, prompting the Terra community to rename the asset and vote for other changes. 

Commodity-backed Stablecoins

Commodity-backed stablecoins are attached to the value of physical assets like precious metals, oil, real estate, etc. Such an approach allows people to invest in real-world assets, similar to buying on the stock market. For example, acquiring a gold bar and finding a secure place to store it can be complicated and pricey. Consequently, keeping tangible assets such as gold might not always be a practical choice. Gold-backed stablecoins, such as Tether Gold (XAUt) and Paxos Gold (PAXG), give you another option.

Among the apparent disadvantages of this model is the inaccessibility of all commodities. While some holders of gold-backed stablecoins can exchange their tokens for real gold, holders of other commodity-backed stablecoins are not always so lucky. For instance, Venezuela’s exploratory Petro stablecoin, now dead, was not redeemable for a barrel of oil. Still, this stablecoin model continues generating interest from crypto owners and people outside the crypto industry.

Final Thoughts

Stablecoins have come a long way from their centralized origins, evolving into advanced instruments that bolster the DeFi ecosystem. Whether using collateralized or algorithmic methods, the goal of creating a stable and decentralized currency continues to drive innovation. As a result, stablecoins are expected to play a crucial role in shaping the financial landscape, offering stability and confidence in an ever-changing digital economy.

Kinetex Network: Website | Kinetex dApp | Blog

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Press Release

ABR Electric: Prevent Electrical Overloads with Safe EV Charger Installations in McKinney, TX

Published

25 minutes ago

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November 28, 2024

By

As the EV market expands and revolutionizes transportation, the demand for reliable home charging solutions is skyrocketing. ABR Electric recognizes that this growth highlights the critical need for technical expertise and cutting-edge infrastructure to deliver seamless charging experiences for EV owners.

McKinney, Texas, United States, 28th Nov 2024 – ABR Electric Highlights Nuisance Tripping Challenges in EV Charging Stations for McKinney, TX Homeowners. As the electric vehicle (EV) revolution accelerates with leading brands like Tesla, Rivian, Lucid, and Ford Mach-E, homeowners are increasingly looking for reliable solutions to support home charging needs. The transition to sustainable transportation is ushering in a new era of EV infrastructure development, but it also comes with challenges. A critical issue arising from updated electrical codes is the nuisance tripping of Ground Fault Circuit Interrupter (GFCI) breakers, disrupting the convenience of at-home EV charging.

ABR Electric, a trusted provider of residential electrical services in McKinney, TX, is stepping up to address these challenges, helping local residents adapt their home electrical systems to meet the demands of modern EV infrastructure. As the EV market continues to expand and transform how we power transportation, the demand for robust home charging solutions is surging. This growth underscores the need for both technical expertise and innovative infrastructure to ensure seamless charging experiences for EV owners.

Collin County’s Populated Areas: Ensuring Seamless EV Charging ABR Electric’s services extend across McKinney, Allen, Plano, Frisco, and surrounding communities in Collin County. Residents in zip codes such as 75071, 75070, 75072 (McKinney), 75013, 75002 (Allen), 75025, 75023, 75093 (Plano), and 75034, 75035 (Frisco) can count on ABR Electric to deliver tailored solutions that meet their specific EV charging needs. With a rapidly growing population in these areas, the demand for reliable EV infrastructure has surged. Homeowners are seeking expert services to upgrade electrical panels, install hardwired chargers, and address nuisance tripping issues caused by updated NEC codes. ABR Electric’s local expertise ensures that residents in these bustling communities can transition to EV ownership with confidence, knowing their charging systems are designed to meet both current and future requirements for sustainable living.

 The Impact of NEC Code Changes on EV Charging The 2020 National Electrical Code (NEC) introduced a significant update with Article 625.54, mandating that all NEMA 14-50 receptacles used for EV charging stations must include Ground Fault Circuit Interrupter (GFCI) protection. This update reflects the NEC’s overarching commitment to enhancing safety standards as electric vehicle (EV) adoption continues to rise. By requiring GFCI protection, the code aims to prevent electric shocks and reduce the risk of fire hazards, cutting off power immediately if a ground fault is detected. This safeguard is particularly crucial for EV charging, given the higher electrical loads involved and the frequent use of outdoor or semi-exposed charging setups where moisture or other environmental factors can increase risk.

However, while this update underscores the NEC’s proactive approach to safety, it has introduced a layer of complexity for homeowners and electricians alike. Nuisance tripping—a phenomenon where the GFCI mechanism shuts off power unnecessarily—has become a common frustration during EV charging sessions. This issue is often attributed to the inherent electrical characteristics of some EV chargers, which can generate ground fault currents that are within safe operating levels but still trigger the GFCI’s sensitive protection mechanism.

The code’s intent aligns with the broader industry shift toward making homes and electrical systems safer, but it also highlights the need for education and adaptation. Electricians must now navigate the balance between compliance and functionality, often working closely with homeowners to troubleshoot and mitigate nuisance tripping issues. For instance, selecting the right combination of EV chargers and GFCI-protected outlets, ensuring proper grounding, and adhering to manufacturer guidelines can help reduce the likelihood of such interruptions.

As the EV market expands with models like Tesla, Rivian, Lucid, and Ford Mach-E leading the charge, the NEC’s guidelines will continue to evolve to accommodate new technologies and use cases. This evolution underscores the importance of staying current with code updates and collaborating with licensed electricians who are familiar with the latest standards. For homeowners, understanding these requirements and their implications not only ensures safety but also optimizes the charging experience for their electric vehicles.

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Why Nuisance Tripping Happens Many Level 2 EV chargers, like the Tesla Wall Connector, already incorporate internal GFCI protection. When this is paired with the external GFCI protection mandated by the code, the overlapping systems can create unintended electrical interference. This redundancy often results in the circuit breaker tripping unnecessarily—even when no actual ground fault exists.

Homeowners may wake up to find their EV only partially charged, or worse, not charged at all, because the breaker tripped overnight. As James Adams, master electrician and owner of ABR Electric, points out: “Nobody wants to go to bed thinking their car will be ready in the morning, only to discover the breaker tripped at 11 PM. It’s a real problem.”

Challenges for Older Homes The issue becomes even more pronounced in older homes. Modern two-pole 50-amp GFCI breakers required for EV chargers are not always compatible with outdated electrical panels. “Some older panels don’t even support these breakers,” Adams explained. “So, if you’re living in a house with a 20-year-old panel, you’re going to face additional hurdles. Upgrading a panel isn’t a small task—it’s costly and requires professional expertise.”

ABR Electric’s Recommendations for Homeowners To address the challenges posed by nuisance tripping of GFCI breakers, ABR Electric offers the following expert solutions to ensure homeowners can maintain seamless and code-compliant EV charging setups:

  1. Hardwired EV Chargers: Opting for a hardwired EV charging station is one of the simplest ways to eliminate nuisance tripping. Unlike NEMA 14-50 outlets, which require GFCI breakers under the 2020 NEC guidelines, hardwired chargers come equipped with internal GFCI protection and bypass the need for external breakers. “This setup adheres to all NEC safety standards while reducing the risk of nuisance tripping,” explains Adams. Hardwired installations can also enhance the aesthetics of the garage by reducing visible cables and outlet wear, making it an excellent long-term investment for EV infrastructure.
  2. Breaker and Panel Upgrades: For homes with older electrical panels, upgrading to a modern panel that supports two-pole 50-amp GFCI breakers is essential to comply with NEC requirements. Many older panels are not compatible with these advanced breakers, making upgrades a necessity rather than an option. Adams notes: “If you live in an older home, this might be the most significant hurdle to overcome. While panel upgrades involve an upfront cost, they prepare your home for future electrical needs beyond EV charging, including potential solar or other energy-efficient systems.”
  3. Expert Consultation: Working with a licensed electrician is critical to navigating the complexities of EV infrastructure. An experienced professional can assess your home’s current electrical system, recommend the most cost-effective and efficient solutions, and ensure proper compliance with the 2020 NEC. Adams emphasizes: “A lot of people assume they can just buy an EV and plug it in, but that’s not always the case. EV owners need to think through the details—whether their car is compatible with the charging system, whether their panel supports the necessary breakers, and what additional work might be required.”

About ABR Electric

ABR Electric, based in McKinney, TX, is a trusted leader in residential electrical services. With expertise in EV charger installations, electrical panel upgrades, and home safety inspections, the company is dedicated to helping homeowners embrace the future of sustainable transportation. Their team prioritizes safety, efficiency, and long-term reliability, ensuring your EV infrastructure is built to last.

  • Certified Expertise: ABR Electric’s electricians are highly trained to navigate the complexities of NEC code compliance, guaranteeing installations that meet the highest safety standards.
  • Customized Planning: The team evaluates each homeowner’s electrical capacity, EV charging needs, and potential future upgrades to deliver tailored solutions.
  • Customer-Centric Approach: With a focus on satisfaction and safety, ABR Electric provides end-to-end support, from consultation to final installation.

Schedule Your Consultation Today

As EVs become a cornerstone of sustainable living, ABR Electric is here to empower McKinney, TX residents with charging solutions that meet today’s needs while preparing for tomorrow’s advancements. Whether you’re a new EV owner or looking to optimize your current setup, we’re ready to help you take the next step confidently.

 

Media Contact

Organization: ABR Electric

Contact Person: James Adams

Website: https://abrelectric.com/

Email: Send Email

Contact Number: +12146901941

Address: 1971 Univ Business Dr #106, McKinney, TX 75071

City: McKinney

State: Texas

Country: United States

Release Id: 28112420043

The post ABR Electric: Prevent Electrical Overloads with Safe EV Charger Installations in McKinney, TX appeared on King Newswire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

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Press Release

Soei – A Revolutionary Social Platform Empowering and Adding Value to the Global Community

Published

39 minutes ago

on

November 28, 2024

By

London, United Kingdom, 27th Nov 2024 – Soei, an emerging leader in digital technology, is transforming how the world connects and interacts. More than just a social networking app, Soei is a complete ecosystem integrating advanced Web2 and Web3 technologies. With over 200,000 users and an impressive 4.9-star rating across iOS and Android platforms, Soei is setting new standards in the social platform landscape.

Empowering Communities with Social Innovation

Soei, which stands for “Social Empowerment & Innovation,” is redefining how communities engage by integrating social networking with technological advancements. The platform provides secure, dynamic, and user-friendly features designed to foster connections, encourage creativity, and enhance user experiences.

Strategic partnerships with renowned organizations like CoinPost, Niza Global, and Psalms Capital further solidify Soei’s position as a sustainable and innovative digital hub.

A Multi-Faceted Ecosystem Tailored to User Needs

At its core, Soei offers a robust ecosystem designed to cater to diverse user demands:

  • Soei Super App: A cutting-edge social networking platform enabling messaging, multimedia sharing, private group chats, and access to global news. With over 23,000 private chat groups as of October 2024, the platform continues to earn the trust of its growing community.
  • Secure Digital Wallet: Integrated for seamless and safe transactions, offering top-tier encryption for user data protection.
  • Soei Edu: An AI-driven online learning platform currently in development, aimed at delivering accessible and high-quality education.
  • Gaming and NFT Marketplace: The Mystic Maze Game, set to launch in Q1 2025, will enable users to earn tokens while enjoying a unique gaming experience. The NFT trading platform is also in testing, promising an innovative marketplace for digital assets.

Socoin.io: A Gateway to Digital Innovation

Soei’s ecosystem extends to Socoin.io, a platform dedicated to maximizing the potential of SOI, the official token of the Soei ecosystem. Through Socoin.io, users can stake tokens, participate in community governance, and explore the gaming and NFT platforms within the Soei network.

Fostering a Community-Centric Approach

Soei’s commitment to its users is evident in its collaborative and inclusive model. By prioritizing community engagement and shared growth, Soei establishes itself as more than just a platform—it becomes a movement, bringing people together for mutual success.

Looking Ahead: AI and the Metaverse

Soei is gearing up to expand its horizons with cutting-edge AI and Metaverse technologies. These advancements aim to create an immersive digital environment where users can interact, work, and entertain themselves in unprecedented ways. This bold step underscores Soei’s dedication to building a future where technology meets human connectivity.

About Soei

Soei is a groundbreaking platform merging social networking, entertainment, and financial tools into a single, powerful ecosystem. With its strategic alliances and forward-thinking approach, Soei is setting the stage for a global digital revolution.

Contact Information

Join Soei today and experience the future of social innovation.

 

Media Contact

Organization: Soei

Contact Person: mathew_anthony

Website: https://soei.social

Email: mathew@soei.io

City: London

Country: United Kingdom

Release Id: 27112420393

The post Soei – A Revolutionary Social Platform Empowering and Adding Value to the Global Community appeared on King Newswire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

About Author

Cloud PR Wire

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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Digi Observer journalist was involved in the writing and production of this article.

Continue Reading

Press Release

Soei – A Revolutionary Social Platform Empowering and Adding Value to the Global Community

Published

39 minutes ago

on

November 28, 2024

By

London, United Kingdom, 27th Nov 2024 – Soei, an emerging leader in digital technology, is transforming how the world connects and interacts. More than just a social networking app, Soei is a complete ecosystem integrating advanced Web2 and Web3 technologies. With over 200,000 users and an impressive 4.9-star rating across iOS and Android platforms, Soei is setting new standards in the social platform landscape.

Empowering Communities with Social Innovation

Soei, which stands for “Social Empowerment & Innovation,” is redefining how communities engage by integrating social networking with technological advancements. The platform provides secure, dynamic, and user-friendly features designed to foster connections, encourage creativity, and enhance user experiences.

Strategic partnerships with renowned organizations like CoinPost, Niza Global, and Psalms Capital further solidify Soei’s position as a sustainable and innovative digital hub.

A Multi-Faceted Ecosystem Tailored to User Needs

At its core, Soei offers a robust ecosystem designed to cater to diverse user demands:

  • Soei Super App: A cutting-edge social networking platform enabling messaging, multimedia sharing, private group chats, and access to global news. With over 23,000 private chat groups as of October 2024, the platform continues to earn the trust of its growing community.
  • Secure Digital Wallet: Integrated for seamless and safe transactions, offering top-tier encryption for user data protection.
  • Soei Edu: An AI-driven online learning platform currently in development, aimed at delivering accessible and high-quality education.
  • Gaming and NFT Marketplace: The Mystic Maze Game, set to launch in Q1 2025, will enable users to earn tokens while enjoying a unique gaming experience. The NFT trading platform is also in testing, promising an innovative marketplace for digital assets.

Socoin.io: A Gateway to Digital Innovation

Soei’s ecosystem extends to Socoin.io, a platform dedicated to maximizing the potential of SOI, the official token of the Soei ecosystem. Through Socoin.io, users can stake tokens, participate in community governance, and explore the gaming and NFT platforms within the Soei network.

Fostering a Community-Centric Approach

Soei’s commitment to its users is evident in its collaborative and inclusive model. By prioritizing community engagement and shared growth, Soei establishes itself as more than just a platform—it becomes a movement, bringing people together for mutual success.

Looking Ahead: AI and the Metaverse

Soei is gearing up to expand its horizons with cutting-edge AI and Metaverse technologies. These advancements aim to create an immersive digital environment where users can interact, work, and entertain themselves in unprecedented ways. This bold step underscores Soei’s dedication to building a future where technology meets human connectivity.

About Soei

Soei is a groundbreaking platform merging social networking, entertainment, and financial tools into a single, powerful ecosystem. With its strategic alliances and forward-thinking approach, Soei is setting the stage for a global digital revolution.

Contact Information

Join Soei today and experience the future of social innovation.

 

Media Contact

Organization: Soei

Contact Person: mathew_anthony

Website: https://soei.social

Email: mathew@soei.io

City: London

Country: United Kingdom

Release Id: 27112420393

The post Soei – A Revolutionary Social Platform Empowering and Adding Value to the Global Community appeared on King Newswire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

About Author

Cloud PR Wire

See author's posts

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Digi Observer journalist was involved in the writing and production of this article.

Continue Reading

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