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USA Real Estate Blog

Origin Partners With Circle To Support USDC Stable Coin In Decentralized Marketplaces

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While blockchain promises to disrupt many existing industries, there are still many barriers to widespread adoption of decentralized applications. These include the lack of mature developer tools, scalability challenges (low transactions per second), and sub-par user experiences.

At Origin, we’re building products to address many of these problems. For example, to address the lack of developer tools, we’ve created Origin.js, a library that interacts with our Ethereum smart contracts and allows developers to quickly spin-up fully decentralized marketplaces with a few simple JavaScript calls even if they don’t know Solidity.

For other problems, however, we are partnering with companies like WeTrust and NuCypher when it makes less sense to try to build a solution in house. One significant challenge to widespread adoption and usage of cryptocurrencies is their volatility. When medium of exchange currencies fluctuate wildly in price, consumers do not have the confidence to spend and transact. To this end, we are excited to announce our plan to support Circle’s stable coin, USDC, an ERC 20 token built on top of Circle’s Centre platform, to help address the problem of unstable cryptocurrency prices.

Although Circle was only founded 5 years ago, they have become a huge player in the payments space, raising over $135 million between 2013 and 2016, including $50 million from Goldman Sachs. Leveraging their success in peer-to-peer payments, Circle started focusing early on the blockchain ecosystem. The company received the first BitLicense from New York and the first virtual currency licensure from London, and also recently acquired the Poloniex cryptocurrency exchange earlier this year for $400 million to bolster its effort to become “The US’s First Regulated Crypto Exchange”.

The Problem Of Cryptocurrency Price Volatility For Decentralized Marketplaces

Even for simple online marketplaces that facilitate the buying and selling of goods, price volatility has an effect. If you list your cryptokitty for 1 ETH, that may be $250 today and $200 or $300 tomorrow. As more time passes between the listing of the item and the day it sells, the likelihood of a nominal price change increases. This uncertainty, which is not present in the fiat-denominated centralized marketplaces, is a glaring problem that must be addressed with solutions like stable coins.

Furthermore, for marketplaces that facilitate the purchase of a service that may not be rendered until much later in the future, price volatility of the payment currency will inevitably create a scenario in which one party — either the buyer or the seller — is going to see a significant gain while the other will see a loss of the same amount. For example, if I booked a house rental in January 2018 for my Hawaii vacation in October and paid in bitcoin, I will have paid more than double what I could have if I had paid in US dollars.

When time is introduced into a transaction, the price volatility of the payment currency becomes an additional limiting factor in a user’s willingness to transact, and this risk will be a non-starter for many, creating too much friction for them to transact comfortably on the marketplace.

We have been keeping close tabs on numerous stable coin projects that are using many different approaches. We plan to support multiple ERC 20 stable coins and are happy that a company with the reputation of Circle is getting involved in the space.

Circle’s USDC brings three important elements to the table that make it an easy decision to support:

  1. Transparency: Transparency creates trust, and trust is a necessary element in giving users reason to believe the stable coin will remain stable over the long term. Like Origin, Circle decided to build USDC on open source protocols and leverage the ERC 20 standard that is already compatible with our platform.
  2. Liquidity: USDC is backed by a 1:1 reserve ratio, a rarity for stable coins that gives it an extra degree of stability in the short term as algorithmic approaches mature over the long term. Also, a company as big as Circle is more likely to survive the ups-and-downs of the market and will be able to approach the space with a longer time-horizon.
  3. Reputation: A brand people already know and love will make user adoption of the USDC stable coin easier over the long-term.

Centre also leverages a lot of technology that Circle already built, with an early form of the protocols already in production today servicing millions of customers in Circle’s ecosystem.

We look forward to the many Origin-powered marketplaces that will be able to leverage USDC and other stable coins to create a better experience for users.

Learn more about Origin:

  • Web: originprotocol.com
  • Telegram: t.me/originprotocol
  • Discord: originprotocol.com/discord
  • Reddit: reddit.com/r/originprotocol/
  • Facebook: facebook.com/originprotocol
  • Instagram: instagram.com/originprotocol
  • Twitter: twitter.com/originprotocol
  • YouTube: youtube.com/c/originprotocol
  • Email: info@originprotocol.com



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