New Protocol Discovered to Improve StablecoinsDec 07, 2018 at 23:54
Element Zero Network, a not-for-profit organization, discovered a breakthrough 4th Protocol Methodology for a new generation of stablecoins.
Notably, the innovation will eliminate the possibility for any volatility as it aims to replace Bitcoin and current stablecoins as a common way of payment.
It can be noted that the project is being developed by a team of international digital currency experts partnered with Nobel Prize winners, blockchain leaders as well as former officials of the Security and Exchange Commission.
Specifically, the 4th Protocol Methodology uses a new and proprietary Algorithmic Stability Protocol to protect stablecoins from future volatility events to keep it’s purchasing power amid inflation.
“The main purpose of any currency is to allow the public to hold their savings and to function as a way to pay for goods and services. In order to be successful, a stablecoin needs to offer protection from numerous volatility-inducing factors, whether they are those that we know today or 100 years from now,” said Jude Regev, founder and chairman of Element Zero.
At present, the market relies on stablecoins to achieve stability by backing the coin with a currency, asset or commodity. However, one of the biggest concerns related to such coin are plans of several governments to launch their own digital currencies.
“It is not reasonable or prudent to have a decentralized protocol that today claims that it can cope with any future scenario, including those that are completely unknown today… To ensure that future digital currencies will be adopted by Main Street, we must have a new generation of stablecoin that capable to combat with any scenario, one that has the ability to eliminate any volatility in the first place as well as protect against long-term inflation,” Regev further explained.