What is TrueUSD (TUSD) in simple words

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2019-09-05 00:00:00:

Interest in virtual money is increasing every year. The cryptocurrency market is constantly updated with new projects. This article contains information about TrueUSD , a currency that stands out from the rest.

What is TrueUSD (TUSD)

This coin is a stablecoin. This means that the currency is pegged to ordinary money or other valuable commodities such as oil, gold, etc. Therefore, TrueUSD is more resistant to fluctuations in the exchange rate.

The cryptocurrency is issued by the TrastToken platform. It guarantees the full provision of assets with fiat money. The corresponding amount of funds is kept in banks of trust companies. If you have a KYC / AML certificate, tokens can be exchanged for regular money. The investor can exchange dollars for electronic currency. The safety of the deposit is ensured by constant checks. The clients of the platform, in addition to investors, can be raiders, exchanges, hedge funds. The TrastToken project itself is based on the Ethereum platform. We use smart contacts in our work. The analogs of fiat funds are ERC20 tokens.

The developers also plan to launch other cryptocurrencies, which will be backed by other fiat money (euros, yen, etc.).

What is TrueCoin?

It is a service that acts as an intermediary between the TrastToken platform and asset tokens. TrueCoin has a legally secure communication channel with financial institutions and the platform. The latter contains a list of standards by which currencies are margined in the real world.

What is a token?

A token is a unit of account that displays a balance. It allows you to monitor the status of assets. You can manage tokens through a special application. A secure login always requires an electronic signature. The main difference from cryptocurrencies, in a broad sense, is a centralized release or using a certain algorithm. Features of the issue affect the formation of the exchange rate. Tokens do not have their own blockchain. The company has the ability to control transactions with tokens.

Tokenization has many advantages:

the user does not need to actually move their assets and issue the appropriate documentation. Therefore, time is greatly saved, and the transactions themselves are much faster;
blockchain ensures the safety of operations and the safety of assets;
there is no need to involve an intermediary, since the participants use smart contracts;
the number of available services is increasing. For example, by using a recharge card, you can make regular payments automatically;
all information about transactions can be viewed in the application. It is very convenient.

Verification requires some user data to be available. This can be attributed to the disadvantages of tokens, since confidentiality is not fully preserved. To enter, you must enter the key. The downside is that he can get lost or get hacked.

What is ERC20?

ERC20 is not only a unit of account, but also a standard (we wrote more about ERC-20 here ) that sets the rules for the creation and use of tokens. It was created on the basis of the Ethereum blockchain, allows you to control and virtually display the balance of a particular account. Any client can generate their own token. To do this, there is a special code on the site in the public domain. All accounting units obtained on this platform are easily displayed on exchanges and participate in trading. The main goal of the standard is to simplify communication between exchanges, asset accounts and smart contracts.

The standard is based on two actions:

transfer of a certain number of tokens from one wallet to another;
approval of a request for the withdrawal of cryptocurrency .

The obvious advantage of the standard is the ability to work on most sites, compatibility with many programs. The first token developers were always faced with the problem of creating mechanisms for working together with different platforms. With ERC20, this is not a problem. On the other hand, such a plus has its drawbacks. For example, a fraudster can create his own project and start attracting investors to invest money. As a result, the latter does not receive the promised profit.

Despite the fact that for the first time smart contracts were used in blockchain technology, it is the Ethereum cryptocurrency that is considered their full-fledged implementation.

Before funds are transferred, the user submits a transaction request. The program verifies compliance with the terms of the smart contract and performs the following actions:

the participant starts the transfer;
a command is sent to the smart contract that a certain amount of funds will change the owner;
the corresponding number of tokens is withdrawn from the senders account and falls into the recipients wallet.

This system has its advantages. Both participants do not communicate with each other and do not use the services of intermediaries. There is no need to fully verify all information about the transaction. The program itself controls the compliance of the operation with the terms of the contract. Therefore, all operations are fast. Thanks to these characteristics, smart contracts have become very popular.

What is a smart contract?

A smart contract is a specially designed computer algorithm that provides, controls, and reproduces information about the ownership of something. The second name of the algorithm is a crypto contract. It is commonly used in blockchain. The client can receive real-time information on a specific address in the blockchain.

The crypto contract is signed by the parties. The basic version operates in several stages. All conditions and assets receive their code and are entered into a specific block of the blockchain. If the participants fulfill all the provisions of the contract, then the contract is fulfilled. All transactions must comply with its terms. Otherwise, the transaction fails.

Smart contracts have the following advantages:

all operations are much faster. This increases the efficiency of the company, regardless of the field of activity;
all the provisions of the agreement cannot be changed by anyone or in any way. This transparency of transactions increases the confidence of both parties. This characteristic is especially valuable for the financial and public sector;
the algorithm allows you to automatically carry out operations, manage them even in decentralized networks. This feature is an obstacle to mass use;
it is difficult to ensure data confidentiality. There must be trust in the participants who enter information into the block;
to obtain reliable information about the parties to the contract, special blockchain oracles were created. They process real-world data and provide it to the blockchain;
most often large companies with a good reputation among clients act as oracles.

Today, the Ethereum platform is the leader in the use of smart contracts.

What is blockchain?

Blockchain is a chain of blocks created according to a certain algorithm that contains data. Usually, each part of the chain is on a separate computer. The blockchain was successfully used for the first time in 2008 in the first virtual coins. Therefore, the blockchain is usually associated with bitcoin. Today, blockchain is used in many, different areas of human activity to exchange data.

The main feature of the technology is that information is transmitted, but not copied. The content of the information does not matter. The benefits of blockchain include:

each user can check the data entering the system;
when entering information into the block, the user is given an individual code. It is almost impossible to recognize him. Therefore, a hacker will not be able to change the content. Even if the attacker succeeds in this somehow, the system will reject all actions. This is because the new information is different from the current copies;
complete confidentiality. The participants do not know anything about each other. In some cases, the e-wallet number may be known. Any operations cannot be performed without an access code;
any client can view the details of the transaction;
there is no shared server for storing information. Everything is in user records.

Any user can use the block to transfer content. To do this, you need to get a key that the program creates individually using a cryptographic algorithm. It is also used to access the block, and in some cases (bitcoin) is the account number of an electronic wallet. After successful placement in the block, the content can be sent to any country, locality, etc.

Depending on the services and programs used, the technology can be created in two models.

Private. This option is especially relevant for entrepreneurs. The network is created and operated by the business owner. The chain works to achieve the corporate goals of the organization.
Public. This model is used by people who mine and trade cryptocurrency.

The blockchain has a predefined algorithm that resists hacking and prevents failures. This system has been working without any problems for over 11 years. Technology features:

controlled by one person;
resists any kind of rejection.

Blockchain is already successfully used in most areas of life. The technology is growing in popularity. Its areas of application:

development of programs based on technology that provide protection against DDOS attacks;
creation of business cards on the Internet available to all users;
securing the right to own something;
provision of documents confirming quality;
the technology allows you to find out the exact time when information entered the network;
partners can conduct a transaction safely without involving third parties;
storage of documents ensuring access security;
assurance of secure network management.

When conducting an operation, the participants in the transaction do not need to draw up documentation. As a result, transactions go through significantly faster and the cost of their execution is reduced. This feature allows large organizations to reduce costs. Blockchain allows you to store and transfer information in medicine, logistics, finance, law. The downside of the technology is poor scalability. There are many platforms out there that conduct many more transactions in the same amount of time.

TrueUSD history

The project saw the world in early 2018. In just 2 months, investors invested $ 12 million, and soon the amount increased to 20 million. Initially, a token was created by the developers. Users have developed a keen interest in the project, especially in a stable currency. So TrueUSD coins were soon issued, backed by US fiat currency. According to the founders, it was the possibility of exchanging cryptocurrencies for dollars that led to its popularity. This confirms the value of stable digital money.

An important factor is that the company is not funded by an ICO ( Initial coin offering ). This is a form of attracting investors by selling a certain amount of new cryptocurrency, which is issued quickly or one-time. There is also an initial token offering form.

TrustToken works with venture capitalists, that is, companies that fund startups, new firms that are fighting for their niche in the market. The organization also cooperates with licensed financial institutions that take part in the provision of cryptocurrency. To improve security, TrustToken developers do not have access to asset transactions. Funds are processed directly by trust companies and banks.

The founding team includes alumni from California, Stanford and Carnegie Mellon University. Also, specialists from leading world companies such as Google, PayPal and others are working on the project. The main role in the creation of the project was played by Raphael Cosman (co-owner, technical director), Denny Ayn (co-owner, CEO), Stephen Cade (co-owner, head of the operating system). Patricia Weng, Ozzy Goon and Michael J. Bland played a major role in the creation.

Distinctive features of TrueUSD

The project operates in accordance with legislation and technical regulations. All this is a guarantee of liquidity and provision with ordinary money. Features of TrustToken:

careful adherence to standards in order for the digital currency rate to be stable;
financial institutions responsible for securing cryptocurrency do not require clients to provide personal information;
at the legal level, the system is built so that it is possible to exchange digital money for dollars directly and transfer them for storage;
according to the provisions of smart contracts, the exchange of TrueUSD for fiat money is carried out in a 1: 1 ratio. This is the guarantee of a stable price;
to secure and manage assets, the accounts of the Escrow platform are used, which is considered the most reliable and popular;
at the US legislative level, provides customer protection in accordance with KYC / AML standards;
the work of the company is constantly monitored through audits by independent specialized organizations. Checks are carried out monthly. This ensures the transparency of TrustToken activities and the security of customer accounts;
the platform does not affect the conduct of transactions.

How TrueUSD works

The essence of the work of this cryptocurrency is the interaction of a large number of trust firms with multibillion-dollar assets. Each of them, before starting to operate in the system, must prove their compliance with KYC / AML. If the verification is successful, the organization signs a notional accumulation agreement. At the last stage, smart contracts are created. They stipulate all the provisions, including the issuance of fiat, equivalent to digital currency at a specific address in the blockchain.

To buy a dollar, you need to give an indication to a smart contract, using KYC / AML. A crypto contract performs the transfer of tokens from a specific address on the Ethereum blockchain. After the funds are credited to the account, the bank transfers the equivalent to the specified electronic wallet. This method of conducting transactions completely eliminates the platforms interference with clients fiat assets. Trust organizations are responsible for the operation.

Unlike other virtual currencies, even those that are considered analogs, TrueUSD is actually backed by regular money. The KYC / AML verification guarantees such stability, and as a result, a certain amount of TrueUSD coins is transferred to the trust firm. The collateral is realized through escrow. Each redeemed certificate corresponds to a digital coin, the rate of which is unchanged at $ 1.

As part of tokenization, the platform provides the following services:

TrastToken. A platform that provides the services described below;
TrustVault. A repository devoid of central management in which all assets are located;
TrustProtocol. A protocol that describes the capabilities and responsibilities of proxies;
TrustMarket. This service helps users find proxies who cooperate with the relevant institutions and administer virtual assets.
SmartTrast is a special contract that transfers ownership in smart contracts on the blockchain.

The purpose of the project

The large-scale use of stablecoin provides new opportunities for all participants in the virtual currency market:

as a tool for earning, TrueUSD is much more resistant to rate fluctuations. These coins are not affected in any way by the movement of other popular cryptocurrencies, due to the withdrawal or input of ordinary assets;
digital currency can be used by one person or a large company. Each of them can see the benefits of TrueUSD. You can quickly make transfers, buy goods, etc. without territorial restrictions;
since it is a stable currency, nothing prevents you from using it to conclude transactions for a long time;
stablecoin is widespread in emerging economies that tend to use digital currency in trade;
any companies, including financial institutions, can use TUSD.

Advantages and Disadvantages of TrueUSD

Investing in stablecoin is profitable, especially if you focus on the long term. The pluses include:

the guarantee of stability is provided by dollars that are stored in reliable companies;
the guarantee of the reliability and safety of funds is that the developers of the company do not have access to accounts. The use of deposit accounts allows you not to resort to the services of intermediaries and thereby speeds up transactions;
legal protection of token holders is provided by the US regulatory framework and regular audits;
coins can be exchanged for fiat at any time. To do this, you just need to pass the KYC / AML check.

American citizens can benefit from the CredEar program. Residents of 29 states can open a deposit in cryptocurrency. The invested funds must be kept in the account for six months. Each quarter will bring the depositor 8% of the amount in the same currency. During this time, the funds are used to lend to other clients. The funds earned cover the cost of paying interest on the deposit.

In addition to all of the above, TrueUSD, like a cryptocurrency, has other advantages:

transfers can be made to any country without paying for services;
complete independence of the issue. This attracts many market participants. Since the issue is demand driven, investors always receive the required amount of funds;
since virtual coins are issued in exactly the amount required by the market, the cryptocurrency is not depreciated;
It is almost impossible for fraudsters to gain access to information. Therefore, the coins are protected from unauthorized transactions by hackers;
commissions are usually paid at the request of the client and in a small amount;
confidentiality of participants. The system cannot learn anything about the client. The only thing that is available is account details and some details of operations;
anyone can start mining due to its simplicity and availability;
you can determine the validity of the transaction;
you can make money on digital currency at any time of the day.

All cryptocurrencies can be characterized as environmentally friendly. In the process of creation and work, a small consumption of electricity is needed.

Disadvantages of virtual money:

an individual key is required to access the e-wallet . If lost, it cannot be restored or recalled;
the exchange rate and demand for coins can change under the influence of independent factors. For example, state authorities may prohibit cryptocurrency by law, and violators will be fined;
operations are irreversible. Once a payment has been made, it cannot be canceled.

How do I buy or sell TrueUSD?

Stablecoin is listed on many exchanges. Daily sales are about $ 3 million. The most popular exchanges for selling TrueUSD are Bittrex and Upbit. Most often, TrueUSD coins are exchanged for bitcoins , but other currency pairs can be created as well. It is possible to exchange digital money for hryvnia on the Kuna exchange. You can buy coins for ordinary fiat money on the crypto exchange itself. Currency is not sold on exchange sites.

To purchase currency, you need to go through the KYC / AML check, upon its completion, the number of the escrow account and the ownership agreement is issued. The procedure is described in more detail above. You can sell your tokens at any time. To conduct an operation, you need to send a check confirming the passage of identification, a smart contract and tokens. As a result, the clients contract is closed, the coins are burned, and the trust firm sends him the dollar equivalent from the savings account.

You can buy TrueUSD at NiceChange without any problems. Here are the popular buying directions:

Selling TrueUSD is popular in the following areas:

Below are the crypto exchanges where you can find TrueUSD.

Binance

The resource has been working for about 3 years. Despite the short time of activity, it is one of the five best crypto exchanges in terms of trading volume. Users are trusted by the fact that the headquarters are located in Hong Kong. The number of processed orders reaches 1 400 000 pieces per second. The interface is convenient, as well as the Russian version. The company compares favorably with low rates for transactions and high speed. Supports many well-known cryptocurrencies. For each of them, you can create a separate account. It is possible to conduct trades from a mobile device. There are additional tools for market analysis and trading. The site has its own currency BNB, no verification is needed.

Bittrex

Not a very popular exchange among Russian-speaking users. This is due to the lack of the Russian language on the site and the inconvenient design. You can work with different currencies, but you can only withdraw dollars in bitcoins. Initially, you need to exchange coins for bitcoins, and then convert to dollar equivalent. Due to this, part of the money goes to pay the commission. In general, the commission is not large - 0.25%.

YoBit

In addition to trading, it provides many additional services: gives clients free cryptocurrencies, prizes, bonuses. Users can create up to 1000 cryptocurrency pairs. An advantageous feature is the ability to withdraw and deposit in fiat money. Very rare coins can be found here. The trading volume can reach $ 15 million per day. Security is ensured by two-factor authentication. Transactions are very fast and with a service fee of 0.2%.

SouthXchange

Centralized Argentine platform. Allows you to trade, exchange digital currency. There are tools to analyze the market. The company has been working on complex corporate applications for over 10 years. The activity in the field of cryptocurrencies began in 2012.

Bitso

Mexican Exchange. Provides a relatively small set of currencies for trading. The commission rate is 0.07%. The user can follow the instructions, training videos. There is a mobile application. The interface does not support Russian.

HitBTC

This is a British Stock Exchange, which started its activities over 4 years ago. The platform itself has a beautiful design, a simple user-friendly interface and fast operations. You can trade both digital currencies and tokens. Account security is ensured by a high degree of protection. There is a demo that allows you to try yourself in cryptocurrency trading. If the client plans to withdraw funds in fiat, then it will be necessary to go through verification. You can use the service without identification, but in this case, withdrawal is available only in cryptocurrency. For verification, you must indicate your full name, address and country of residence, a photo or scanned copy of some documents.

Ciontiger

The site has been operating since 2017 with registration in Singapore. 5 languages are supported, including Russian. The cost of services is 0.1%. You can withdraw and deposit only virtual coins. The company works with major currency pairs. There are profitable referral programs in which the amount of reward reaches 40%. Issues its own TCH tokens. It will take about 5 minutes to register on the site.

TrueUSD rate to ruble

The current average price on the stock exchanges is 66.54 rubles. At the beginning of the day, the price was equal to 67.38 rubles. During the day, the TrueUSD rate against the ruble fell by 0.84386.

TrueUSD rate to dollar

Since it is a stablecoin backed by the US currency, the TrueUSD rate never changes against the dollar. The cost is $ 1.

TrueUSD rate to euro

The average TrueUSD rate across exchanges is currently 0.9124 euros. Over the past 24 hours, the value of the coin has increased by 0.01194 euros.

Where to store TrueUSD

Since the currency is issued based on the ER20 standard, TrueUSD can be stored on Ethereum e-wallets . Among them, the most popular is Myetherwallet. Also, funds can be stored on an exchange or hardware wallets.

Features of different wallets

A local Ethereum wallet called Mist was created specifically for storing large amounts. Access keys are entered into the computer memory. The owner has complete control over the condition of the assets. First, you need to download and install the application. The program itself is available and the interface is simple and straightforward. But there are also disadvantages. The wallet only works with currencies based on the Ethereum standard. The blockchain will reside on the devices hard drive. Therefore, a lot of GB of memory will be required. Synchronization takes a very long time.

The second type is online wallets. These include Myetherwallet. Basically, it is a browser for accessing assets. The storage is located directly on the computer. This ensures the safety of use, since all data is located on the device and does not reach third parties. Funds are not transferred to the service itself. The client gets access to assets through its interface.

The network has also developed a multicurrency version of Jaxx. It can store different currencies. Initially, the wallet was created to work with bitcoin, but over time, the developers have added other networks. This wallet cooperates with the ShapeShift exchange. The advantage is the ability to use one account on many devices. The main program is installed on the computer. It can be accessed via a mobile application or browser version.

Hardware options are popular with investors. They are shaped like a small USB stick. It can store a large number of different currencies. These devices are more secure because they are not permanently connected to the network. An attacker cannot gain access to the data. To carry out the operation, the hardware wallet is connected to the device, the Internet and a pin code is entered. Upon completion of the transaction, the wallet is disconnected from the Internet. Unlike other types of wallets, hardware wallets have a password recovery function. If a hard drive with a local wallet is lost, then there will be no access to the balance. The most famous hardware wallets today are those created by Ledger and Trezor.

To protect the assets in the wallet, it is recommended to use all possible identification methods. Passwords and keys must not be disclosed to anyone. For storing large amounts, it is better to give preference to more secure wallets. Placement of assets on sites and online services is the last thing.

How much is TrueUSD

In terms of capitalization, stablecoin ranks 91st. The average trading volume for 24 hours is 14 399 039 dollars. The turnover at the moment is about 58 800 000 coins. How much TrueUSD will be issued depends on investor demand and user activity.

Emission TrueUSD

The issuance of digital funds is entirely dependent on the actions of users. The more transactions are carried out with coins, the higher their value. Nobody exercises control over the emission. It is characteristic that over time the number of coins decreases. The only thing that can regulate this process is a definitely tuned cryptographic algorithm. It protects against interference with human emissions and performs the following functions:

determines the volume, timing, frequency of occurrence of coins;
protects against attempts to illegally, contrary to the rules, to increase the amount of funds.

The course is formed under the influence of demand, supply, and it is impossible to issue a cryptocurrency in order to influence the cost.

TrueUSD is generated only when customers intend to purchase coins with regular money or using an app. Coins usually appear in batches. TrustToken creates as many coins as there are dollars in the accounts of third-party intermediaries. There are situations when demand exceeds supply.

What is provided with TrueUSD

The stablecoin is fully backed by the US dollar in a 1: 1 ratio. The fiat equivalent of the token is on the accounts of two partners - Alliance Trust Company of Nevada and Prime.

The future of TrueUSD

Most likely, in the future, the popularity and breadth of use of TrueUSD will increase. This is a great way for traders to protect themselves from currency fluctuations. The use of cryptocurrencies in developing countries, whose ordinary money is unstable, will be relevant. Stability and sustainability will be valuable for financial institutions as well as institutional investors.

The developers state that in the future they intend to tokenize assets that will be stored in other currencies (yen, euro, etc.). This is a very promising area. If the creators keep their promises and bring new stablecoins to many exchanges, it will contribute to the globalization of efficient trading.

Even more trust and transparency of activities is ensured by cooperation with the audit company Armanino. From the moment of common work, traders have the opportunity to control the stability of coins, and control the balance of other tokenized assets.

Coin compatibility with the Exodus wallet plays an important role in the development of the ecosystem. It contains a large number of different currencies. Even a cryptocurrency novice can conduct transactions. The application interface is very simple and straightforward. TrueUSD is the first stablecoin to support a wallet.

All of the above suggests that this virtual currency will function for a long time. Due to its high stability, it reliably connects the real financial world with the cryptocurrency market. In addition to trust, TrueUSD has many benefits that encourage long-term investment.