On the 9th of November, Carbon-12 Labs, or better known as Carbon, which as a New York-based blockchain startup that develops a stablecoin called CarbonUSD or CUSD, has announced that CUSD has been available on the EOS platform. We’ll take a closer look at the CUSD.
CarbonUSD was launched on the 12th of September, 2018
Carbon-12 Labs, or only Carbon, which has been founded by the CEO Samuel Trautwein, the CPO Connor Linn, and Gavin Mai, and CSO Miles Albert, has originally launched CarbonUSD on the Ethereum or ETH platform on the 12th of September this year. CarbonUSD is actually a price-stable cryptocurrency which is fully-collateralized 1:1 by the U.S. dollars held in the FDIC-insured accounts.
But, the long-term plan, as Sam Trautwein explained, is to transition a fiat-backed algorithm once when CUSD reaches the sufficient scale as a fully fiat-backed token.
He explains that while redeemable, the fiat-backed tokens are, in general, trusted on day 0 and they are intrinsically unscalable. Structurally, these tokens are multi-party bearer receipts which means that their soundness depends not on a simple fail point, but instead often on four to five. If the auditor or the trusted company, the bank, the smart contract auditor, or software provider actually fail, the whole structure will come tumbling down. As the stablecoin is actually scaling, it also undergoes significant strain. They also draw increased regulatory scrutiny which means that small things which were once overlooked now are going to draw the ire of governing bodies. In a lot of different ways, Tether outscaled its compliance. They also lost their abilities to withdraw and depositing through Wells Fargo overnight. It is quite challenging to build a new paradigm within the old one.
CUSD became available on EOS too
Combining the two presents will be the best route ahead. He explained that they offer the optimal consumer product today and tomorrow. The transition is going to be gradual and transparent as they are leaving the infrastructure in place for the users to keep utilizing fiat-backed solutions if they want to.
On the 9th of November, Carbon has announced that CUSD had also become available on the EOS platform. In one post which was published on the 10th of November, Trautwein also explained that the interoperability solution of Carbon will actually enable CUSD users to transfer the tokens they have onto the EOS blockchain, where the users actually transfer CUSD with even lower fees, as well as some faster settlement than on ETH.
He added that they are honored and even excited to be the first stablecoin on EOS and to also play such a key role in such a burgeoning ecosystem. Stablecoins are actually critical infrastructure for value, and he said that they believe providing this to EOS will further enhance the ecosystem.
The president of Everipedia states stablecoins are the next big thing in the crypto world
He continued explaining how deposits or withdrawals work. He said that to create new CUSD tokens, the users can actually make fiat deposits with the partner bank of the company, Nevada-based Prime Trust. Some many third-party attestations by leading auditor Cohen & Co. actually verify that each of the tokens is backed 1 to 1 by escrowed funds in a trust account.
The co-founder and president of Everipedia, which is an EOS Dapp which also calls itself the largest encyclopedia on the blockchain in the world, named Sam Kazemian, stated that stablecoins, as an asset class, are actually the following big thing in crypto world and they are going to lead to a new bull market in the following 6 to 18 months.
The unique hybrid approach of Carbon for gaining stablecoin adoption is the most promising he said he knows. There is no other project similar to it.