How stablecoins stay stable, explained

[Alex077]

  Can a stablecoin make Ethereum scalable?
Crypto-backed stablecoin Free TON aspires to provide a layer-two solution for Ethereum’s scalability problems.

With overloaded Ethereum increasingly choked by slow transaction speeds and widely overinflated gas prices, the Free TON stablecoin will be a “true layer-two solution with immense upside,” TON Labs added. “The application of Free TON’s second layer solution does much to remedy these problems. With the stablecoin, super cheap microtransactions can now be made and in a fraction of the time it would take on the original blockchain.”

That in turn opens up a wide variety of new uses, ranging from making small payments viable, in fields like payment and gaming, it said.

Along with the new bridge between Free TON and Ethereum built by Broxus and the enormous scaling potential of Free TON’s dynamic sharding, the forthcoming stablecoin’s biggest hurdle, according to Free TON, “will be getting users to recognize the qualities of the platform and proving that it can handle the high workloads it was built for.”

Read more..https://cointelegraph.com/explained/how-stablecoins-stay-stable-explained