Packaging assets

Packaging cryptocurrency is the cryptocurrency used in defi software, which is closely related to the value of another initial cryptocurrency or other assets such as gold, individual stocks, stocks and real estate. This asset is created by a simple process. In order to build packaging assets, the custodian forges a certain number of original tokens on a certain service platform (such as Ethereum).

This process is completed in response to requests from merchants such as airswap, AAVE or coinlist. There are two ways to manage such assets; Redeemable and cash payment. Tokens of the cash payment mode cannot be exchanged with the base price assets. On the other hand, redeemable tokens allow investors to trade packaged tokens with underlying assets.

The first batch of packaging assets is the packaging BTC token commonly used in Ethereum blockchain by using blockchain. This kind of asset is billed as wbtc to provide investors with long-term investment and loan guarantees

This token is not limited to BTC, as long as it meets the requirements of erc-20 of Ethereum and bep-20 of binance intelligent chain, other assets also meet the requirements. This feature makes them very similar to stable coins and regarded as assets with similar characteristics.

Packaged tokens need to be handled by the escrow organization, which will package and unpack the asset because it is associated with another asset. However, due to the penetration of cryptocurrency, this whole process of "packaging and decompression" may not be implemented.

Packaging dynamic password has many main uses in the encrypted space. This asset creates a road bridge across the Internet, completes the interoperability of the cryptocurrency industry, and can use non local assets in all blockchain technologies.

Non fungible tokens (NFTs)

Irreplaceable tokens (NFTs) are crypto assets in blockchain technology, which can be distinguished from information by unique identification codes. NFTs cannot be purchased or exchanged at the same amount as cryptocurrencies.

This role is in contrast to cryptocurrency and other substitutes for tokens. The latter one can be exchanged, so it can be used as a trading medium for commercial services. This function makes NFT an ideal medium to show the ownership of special objects.

NFTs can exist in a variety of ways as long as they are all in digital form. In this case, NFTs can be stored in the form of plastic arts, songs, entertainment items, photos and even video content. NFTs can also show a real-world project, such as the real estate industry. Converting these new data items into NFTs is "tokenization."

Although NFTs have existed since 2014, they have only recently won the allure of crypto globally. Because of the high attention of influencers and the improvement in ease of use caused by the recent foam in 2021, this NFT is now more and more known to everyone.

In 2021 alone, the NFT sales market spent a surprising $41 billion, which is basically equal to the cost of the global arts and crafts sales market. Some popular collections, such as bored ape golf driving range and cryptopunks, have sold more than $1 million. This NFT can be purchased from online sales markets such as opensea, super rare and Raible

Stable currency

Stable currency is a kind of digital currency, which uses a stable system to maintain its value "stable" compared with one or more official online loan currencies or other assets. Such assets also involve other crypto assets and financial derivatives. The purpose of stable currency is to provide a substitute for extreme changes for the most widely used cryptocurrency.

Therefore, stable coins can be used as an exchange method to replace other cryptocurrencies that are prone to irregular use value changes. The application of stable currency instead of BTC and other cryptocurrencies can reduce many risks of buyers and sellers

There are three ways to stabilize the currency; The law stipulates pledge stable coins, crypto pledge stable coins and optimized algorithm stable coins. The stable currency guaranteed by Fiat Automobile is linked with legal tender such as US dollars. Examples of stable coins include usdt and US dollar coins.

On the other hand, crypto pledge stable currency is encouraged by other cryptocurrency reserves. An example of such stable coins is Dai. The optimized algorithm enables stable coins to be added or withdrawn from existing reserves. In turn, they depend on the computer language; Or optimize the algorithm to maintain their stability. Examples of such stable currencies include Ampleforth, FraX and empty dollar (ESD).

The working state of stable currency is to use the reserve assets as collateral, or use the supply manipulation calculation optimization algorithm; Stable currency is committed to ensuring price stability. This is true of all stable coins: the law stipulates pledge stable coins, crypto pledge stable coins and optimized algorithm stable coins.

All three kinds of stable coins adopt the supply-demand matching strategy to maintain the stable use value, and then can be maintained and used as a substitute for legal tender. This kind of coin has recently been verified, and regulators are focusing on plugging all the current system loopholes that may cause the collapse of the financial industry.

Gist

Encrypting the world is a technical surprise, and it is likely to bring great expectations for the future development of human development. The development trend of the crypto region has led to the R & D of many different assets with different applications. NFTs, packaged assets and stable coins are the most profitable breakthroughs derived from crypto research and development

Each of these data assets has added great expectations to the holders and profits to many investors. Although there are great market prospects, willing investors must evaluate the characteristics of each asset before introducing it into the asset. By doing so, investors can minimize the risk and defer the assets suitable for their planning to income tax.