NFT Dollar WhitePaper
Search…
Functions and Use-Cases
The digital asset industry is relatively immature, therefore we expect first use cases for NFT Dollar to be quite diverse from future use cases. In the foreseeable future, we predict these applications to be most swiftly adopted:
- 1.Payment for other blockchain-based assets, including crypto asset and securities tokensThe most intricate and challenging part of trading in blockchain-based assets is the problem of transferring a payment leg efficiently and with dependable timing.
- 2.Conversion to a stable asset as a hedge during times of volatilityInvestors who trade digital assets can hold assets in NFTU to reduce exposure to digital asset volatility, so benefiting from the steadiness of the US dollar without experiencing the expenses and delays of changing to fiat.
- 3.Execution of sophisticated, programmable digital asset transactions with less volatilityNFTU is a cryptocurrency based on the ERC-20 standard with support for Ethereum smart contracts created to manage complex transaction terms and conditions and to word inside the wider token ecosystem, thus decreasing the risk of volatility.
- 4.Bulk of cryptocurrency trades on exchanges is now done through stable coin pairingsFor instance, on Binance, the largest cryptocurrency exchange, BUSD is traded against a variety of other cryptocurrencies, including Bitcoin and Ethereum. Stable coins are popular for trading assets because they mimic the way stocks are traded. For instance, stock prices in the equity markets are quoted in USD and are frequently traded for cash or currency equivalents. Typically, equities are not swapped for one another, such as Tesla shares for Google shares. Prior to stable coins, cryptocurrency exchanges allowed users to swap only one crypto asset (e.g., Bitcoin) for another (e.g., Ethereum). This implies that the trader is taking a twofold risk on the price. This danger is addressed by stable coins such as NFTU.
- 5.Bank Restrictions in Setting up Bank accounts.Through NFTU Stablecoin, people and companies worldwide may have access to the economic stability afforded by the US dollar and take custody of its value.
- 6.Tokenization of newly Adopted tokens on the Blockchainhis will facilitate the rapid and affordable transfer of money throughout the world. At the moment, the expenses of transmitting money across countries can be excessively expensive, with fees amounting to up to 10% of the value of the transferred item(e.g. the Hong Kong Dollar, the Philippine Peso, and the Argentine Peso, among others), Stable coins reduce many of the costs incurred by middlemen, allowing for a greater flow of assets to return to home nations. This is a net advantage for governments since it permits monies to be returned to local economies rather than being stolen by money remitters.
Last modified 5mo ago
Copy link