Fiat-Pegged Cryptocurrency
By CoinGecko | Updated on Mar 03, 2020
Certain cryptocurrencies are pegged to an underlying asset, such as the USD Coin (USDC), which is a stablecoin by Coinbase. A USDC token is issued for every $1 kept in Coinbases' reserve.
A pegged cryptocurrency can be pegged to any asset and then issued on a blockchain. As long as the cryptocurrency can be redeemed for the underlying asset, it can be considered as a pegged cryptocurrency.
Related Terms
State Channel
Secondary payment channel occuring off-chain
Wallet
Software client that handles storage of cryptocurrencies and allows users to send cryptocurrencies.
Sharding
A form of database partitioning which breaks up data into smaller segments.
51% Attack
An attack on blockchain by a group of miners controlling more than 50% of network hash rate
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