Review on Gemini Dollar by francis fernandez
Gemini Dollar: a stable currency with many advantages
Gemini is a digital asset dating from 2018; Its value is balanced with the US dollar in a ratio of 1: 1 and whose operation operates on the Ethereum chain through the execution of smart contracts.
Token:
The GUSD token is guaranteed by dollarized reserves held in a banking institution in the city of London.
GUSD is an ERC-20 token of Ethereum.
Additionally, it is affiliated with an FDIC deposit insurance system. Functioning:
The FIAT USD to Gemini dollar currency conversion system consists of users affiliated with the network making a deposit to an Ethereum address so that the Gemini platform can adapt their funds to the corresponding GUSD token supply.
GUSD tokens are generated immediately upon withdrawal of Gemini dollars; they are debited from the client when the withdrawal is made and are credited when the deposit is made.
Technology:
Because Gemini is hosted on the Ethereum network, the GUSD coin generation process is based on the execution of smart contracts. Both the minting and the maximum supply require the signature using a virtual key and an offline key (issue case).
This multi-signature mechanism that is applied to smart contracts is nothing more than a security protocol implemented by the platform to reduce possible risks of fraud and failures.
Pros
- Is backed by the US dollar
- It is a currency of stable value
- It does not have a maximum supply established
Cons
- It has no disadvantages
