The rapidly growing digital system has been impacted greatly by the advent of cryptocurrencies, digital currencies which are used to carry out digital transactions efficiently.
These digital currencies are replacing the fiat currency, due to their efficiency and reliability in carrying out different financial transactions, with ease. It completely eliminates the flaws of the current fiat currency, replacing it with a more effective payment means, further advancing the digital system.
The introduction of cryptocurrencies has taken the world a lot of steps closer to achieving a digital economy, characterized by a seamless and frictionless financial system on the global scale. Now to a very important aspect of these digital currencies, the reason for its efficiency and reliability as the new medium of payment, the Blockchain technology.
The Blockchain technology is the tool behind the functioning of these cryptocurrencies, as it powers the entire digital currency, giving it all the features which makes it unique and superior to the inefficient fiat. Due to the presence of the Blockchain and its ability to facilitate the creation and deployment of different kinds of digital currencies, a lot of systems have released their own cryptocurrencies to facilitate transactions on their system, with ease, while other systems are just joining the wagon, having realized the numerous benefits it carries and how great it could improve their performance.
Aside from these digital systems, different countries are also rolling out their very own digital currencies to be used in carrying out financial transactions in its country, to improve their economy. Among the many countries which has launched their own digital currency are, China, Senegal, Singapore, Tunisia, and a few others, to facilitate seamless transaction and create a borderless economy for the advancement of the global system.
Marshal Island has even announced the release of its own national digital currency which will be regarded as the SOV, on the Algorand Blockchain technology. There is great news, as another digital currency will also be released on Algorand Blockchain.
QCAD To Be Released On Algorand
A Canadian joint venture called the Stablecorp Inc., has partnered up with Algorand to release the QCAD for use in carrying out digital transactions. The QCAD released is a stablecoin backed by the Canadian Dollar, the first stablecoin that is not backed by the USD, and it will be powered by the Algorand Blockchain.
This digital currency will play a major role in the ongoing digital revolution, as it takes the world, especially the Canadian system, steps closer to achieving a cashless economy, where digital currencies are used.
What Is A Stablecoin?
A stablecoin is a form of cryptocurrency which is created to help reduce the price volatility of cryptocurrencies, simply by pegging it to an asset. Since price volatility is one of the limitations of cryptocurrencies as a medium of payment, making it unfit to be used in carrying out day to day transactions, stablecoins were created.
It mitigates the price instability through the pegging of the crypto asset to a physical asset which has a more stable design, in such a way that it cannot be affected by price fluctuations. So, being pegged to the Canadian Dollar means that the QCAD will be backed by the Canadian Dollar, in such a way that its price never goes lower than the Canadian Dollar, making it suitable in making real world payments with ease, seeing as it is more stable than the regular cryptocurrencies.
To pull this off, a unique kind of Blockchain is necessary, as it will be impossible to release a working digital currency with an inefficient Blockchain seeing as a Blockchain is the technology which powers the digital currencies. That’s where Algorand Blockchain comes in.
Algorand Blockchain And Features
Algorand Blockchain protocol was developed by Algorand Foundation and Algorand INC., as an efficient Blockchain which will facilitate frictionless finance for the global system. This revolutionary Blockchain was designed to be the first open and permissionless Blockchain, allowing anyone to build on it without restriction, and in a decentralized manner.
To function with great efficiency, Algorand Protocol makes use of a not-so-common consensus mechanism called the Pure Proof-of-Stake (PPoS), just to ensure it provides everything needed for the global system to be improved and for the economy to thrive.
Algorand Blockchain was created with lots of features like scalability, high speed, reinforced security and even cost efficiency, which makes it unique when being compared with other technologies, and allows every Dapps or assets developed on it to function effectively.
Benefits Of Algorand Blockchain
Algorand Blockchain was adopted by Stablecorp due to the efficiency and great features which it exhibits, giving the QCAD the capability of being used as a medium of payment. The amazing speed of Algorand makes it possible for transactions with the QCAD to be very swift, reducing the time a user has to spend to carry out payment.
Algorand Blockchain also has a very high transaction throughput that lets it process multiple QCAD transactions at a time, without any limitation, and its scalability feature also allows this digital currency to be integrated and used in different systems.
Having powered the release of different digital currencies, and being used in the development of different dapps, Algorand has the expertise needed to develop and deploy digital currencies, which makes it the perfect fit in running a digital currency.
With Algorand supporting the QCAD, confirmation for transactions will be instant and every operation will be fully secured as Algorand will even provide an efficient wallet support.
Uses Of QCAD
With the release of the QCAD, the Canadian Dollar stablecoin, financial transactions will not only become easier, but will also will also become safer and faster. The QCAD will facilitate different kinds of transactions including B2B transactions, and other financial settlements in a more reliable manner, taking the entire Canadian crypto system to the next level.
This new digital currency will be used across different systems, by payment providers and even exchanges, just to ensure ease of payment and make transactions more efficient.
This development recorded by Algorand shows the extent at which it has gone in driving the adoption of cryptocurrencies and Blockchains, worldwide. Being that QCAD is not the first digital currency launched on Algorand, it will perform effectively due to the expertise of Algorand and the sophistication of its Blockchain protocol. Digital transactions are about to become widespread in the Canadian system and beyond, through the release of the QCAD, all with the help of the Algorand Blockchain.