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Review on TrueUSD by HUZAIFA SAEED
In the TrueUSD system, U.S Dollars are held in the bank accounts of multiple…
In the TrueUSD system, U.S Dollars are held in the bank accounts of multiple trust companies that have signed escrow agreements, rather than in a bank account controlled by a single company. According to TrueUSD, the contents of said bank accounts are published every day and are subject to monthly audits. This method of storing USD ensures that the user can have greater trust in TrueUSD as the collateralized holdings are not centralized in any one entity, but instead distributed throughout many fiduciary partners.
In terms of the technology, TrueUSD implements a framework that ensures they are not in charge when issuing tokens. While the USDT tokens are issued on the Bitcoin blockchain through the Omni Protocol, TrueUSD (TUSD) tokens are based on the Ethereum blockchain, allowing for a more advanced issuance mechanism.
If someone wants to obtain TrueUSD through the online application, they will need to pass a KYC/AML check. Once that’s complete, they can send USD to one of TrueUSD’s trust company partners. Once the funds are verified by the trust company, their API will instruct the TrueUSD smart contract to issue tokens on a 1 to 1 ratio and to send them to the Ethereum address associated with the account at hand.
Once in the wallet, the tokens can be transferred to a friend or used as payment, combining the advantages of fiat (stability and trust) with those of cryptocurrencies (reduced fees and transfer times). The user can also redeem real US Dollars by sending the TUSD tokens back to the smart contract address, which will notify the trust company, and initiate a bank transfer to the user’s account.
The system above verifies that the issuance happens in a decentralized environment that utilizes multiple APIs, which ensures the handling of the underlying fiat currency is superior to previous alternatives.
Pros
- Good project
Cons
- I like it
