Alright, alright....here’s a gem drop:
What do Lightning Network, Liquid Network, Libra coin, and JP Morgan’s coin ALL have in common?
***********SIDE CHAIN STAKING***********
This way oversimplified, but essentially these are private and/or permisssioned blockchains that offer enhanced stability, security, and TRUST.
In essence, you “buy into” the so called stable coins blockchain by purchasing their coin: Instant transactions are facilitated by stake holders that provide liquidity. Every transaction is a loan. In a transaction between two parties each party enters an agreement.
The maker “pays” with an original currency, that currency is converted to the “stable coin”. The taker is “paid” in the stablecoin. This is the instant, secure transaction. A few seconds later, all parties transactions are settled. The blockchain ensures the maker really has the original, pledged currency. The takers stable coin is then converted to the currency of their choice.
The blockchain is paid a fee for every transaction in this process, some to the house, some to the stake holder that funded the transaction. There are hundreds of trillions to be made with this model.
Mic Drop.
I’ll delete this in three days. Also I left some steps out
Always DYOR
red all over that bitch...
