Which of the following would NOT be a stablecoin?A Smart Contract which locks up one cryptocurrency in return for a token, and Allows redemptionA token which uses an automatic mechanism to regulate supplyA company issues tokens in return for USD, and redeems those same tokens back to USDA smart contract creates and randomly distributes exactly 100 tokens every 24 hours

Answered: A Smart Contract which locks up one…

Database System Concepts

7th Edition

ISBN:9780078022159

Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Chapter1: Introduction

Section: Chapter Questions

Problem 1PE

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Which of the following would NOT be a stablecoin?

A Smart Contract which locks up one cryptocurrency in return for a token, and Allows redemption
A token which uses an automatic mechanism to regulate supply
A company issues tokens in return for USD, and redeems those same tokens back to USD
A smart contract creates and randomly distributes exactly 100 tokens every 24 hours

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Step 1

What Is a Stablecoin?

A stablecoin is a type of cryptocurrency whose value is tied to an outside asset, such as the U.S. dollar or gold, to stabilize the price.

Smart contracts have given rise to the use of stablecoins not only in seamless trading but also lending, payments, insurance, prediction markets etc...

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