Review on Paxos Standard by Saleh Bayramli

Since last year, cryptocurrency investors have become more and more interested in stablecoins. One of the stablecoins is Paxos Standard (PAX). If you want to know more, you can continue to read the guide article we have prepared for you.

What is the Paxos standard (PAX)? The motto of

Paxos Standard is "Transaction at Internet speed". Paxos was developed to digitize US dollars and transfer money anytime, anywhere. PAX is an important stablecoin because it is pegged to the US dollar through blockchain technology.

Paxos acts as a bridge between the digital currency and the nominal currency. As mentioned above, PAX acts as a stable currency that is fully integrated with the US dollar. PAX offers huge trading benefits for cryptocurrency users, which is roughly $ 1 in perpetuity. The

PAX website claims that it is a cryptocurrency and does not charge any payment fees for transactions, payments, and exchanges. Another convenience is that there are no restrictions on the transaction and payment channels. PAX is developed on the Ethereum blockchain. Provides the ability to convert unstable cryptocurrencies into embedded US dollar cryptocurrencies.

Paxos Standard Token (PAX) is an ERC20 token issued on the Ethereum blockchain. As a regulated stablecoin backed by the US dollar, it combines the advantages of blockchain technology with the stability of legal tender.

Has produced a stable cryptocurrency that provides:

Instant global transactions

Stability

Decentralized accounting

24/7 transactions

Most importantly, each PAX token is fully backed by an equivalent amount of dollars Americans. This means that it can also be used in US dollars at any time. However, under US law, Paxos Standard is not a security.

PAX Standard was established during the bull market in the crypto market in early 2018, which was the leading stablecoin in the market. The Paxos team recognized this opportunity and made additional efforts to be as transparent as possible. Paxos uses smart contracts audited and monitored by smart contract inspector Nomic Labs to issue and destroy its tokens. In addition, Withum, one of the largest auditing companies in the United States, regularly checks reservations.

PAX Advantages

PAX has many advantages. Four salient features are listed below.

is traded as a stablecoin to protect your digital assets from fluctuations.

It allows you to carry out cheap and simple transactions.

The banking transaction time in the traditional system is limited. However, PAX also allows you to trade outside of business hours.

Allows you to easily transfer and pay anywhere in the world. Chapter

Who Is The Team Behind Paxos? The Paxos team consists of seasoned professionals from many different backgrounds, including former Wall Street and Silicon Valley employees. The company is led by its co-founder and CEO Charles Cascarilla.

Paxos Vision The Paxos team sees the future in which blockchain is not part of a great financial revolution, but a key element of its development. Overall, the company hopes to improve the economic ecosystem by developing a seamless global network for simple, mobile and instant asset exchange. How does the standard

Paxos token work?

Paxos Standard is designed for ever-increasing uses. Its main use case today is to limit the volatility of encrypted assets, eliminate friction in cross-border transactions, and become a trusted payment method for encrypted assets and other blockchain assets.

In the future, Paxos aims to be used for consumption payments and stable value storage for people outside the United States, especially in countries with unstable domestic currencies.

This is how the tokenization of USD to PAX works:

users send USD to the bank account of the token issuer.

The issuer uses the PAX smart contract to generate the same amount of PAX.

The newly minted PAX is issued to the user when they have a bank account in US dollars.

The same transaction, but reversed, is also used to convert PAX into US dollars. Each standard Paxos token can be purchased and exchanged using Paxos.com. After redeeming the PAX tokens, the tokens will be immediately destroyed and removed from circulation.

It should be noted that the company does not charge any fees for the conversion and redemption of PAX tokens. The minimum conversion amount starts at $ 100.

Paxos uses an external auditor to demonstrate that it owns the corresponding amount of US dollars. Everyone can access the monthly certification report. What is the difference between the standard Paxos token and other stablecoins? The

Paxos website highlights the following PAX functions:

Oversight: Paxos is overseen by the New York State Department of Financial Services.

Guaranteed Cash Deposits: Each mortgage deposit is deposited in a bank insured by the United States FDIC.

Audit: All Paxos Standard bank accounts are audited by the American audit firm Withum.

Security: Paxos uses additional transaction monitoring and monitoring partners to provide additional compliance.

Purchase and Daily Use Window: PAX tokenization and redemption requests are processed on a regular window to promote free and frequent flow of funds. Each transaction is usually completed within a business day No fees - Paxos standard tokens are issued and redeemed with no additional fees. The main difference between

PAX and its competitors is that transactions are more efficient due to different partner organizations and "processing windows." However, it is a well-known fact that all new stablecoin projects are designed to devalue the long-term market leader Tether (USDT).

The only fundamentally different stablecoin among the top 100 cryptocurrencies is DAI. Maker’s project DAI does not have a trust guarantee, but it still hopes to maintain its value against the U.S. dollar. Where is the standard Paxos token stored?

PAX is an ERC20 token issued on the Ethereum blockchain. Therefore, it can be stored in any Ethereum wallet. The most common ETH wallet options include MyEtherWallet, MetaMask, Mint or Jaxx.

In addition, the Paxos.com website can be used to exchange standard Paxos tokens.

Result: Paxos Standard (PAX)

Paxos entered the cryptocurrency world and became one of the fastest growing stablecoins.