World News: 15:54 GMT Thursday 6th December 2018. [Element Zero Network via Globe Newswire via SPi World News]
SILICON VALLEY, Calif., Dec. 06, 2018 (GLOBE NEWSWIRE) -- Element Zero Network, a not-for-profit organization, announced today the discovery of a breakthrough 4th Protocol Methodology for a new generation of stablecoins that eliminates the possibility for any volatility in the first place and aims to replace Bitcoin and current stablecoins as a common way of payment. Developed by a leadership team of international digital currency experts in collaboration with Nobel Prize winners, blockchain leaders, and the former Chairman of the Security and Exchange Commission (SEC).
The 4 Methodology uses a new and proprietary Algorithmic Stability Protocol that not only protects the stablecoin from any future volatility events, it is also designed to keep it's purchasing power in place by overcoming inflation.
"The main purpose of any currency is to allow the public to hold their savings and to function as a way to pay for goods and services,” said Jude Regev, Founder and Chairman of Element Zero. “In order to be successful, a stablecoin needs to offer protection from numerous volatility-inducing factors, whether they are those that we know today or 100 years from now.”
Currently, the cryptocurrency market relies on stablecoins trying to achieve stability by backing the coin with a currency, asset or commodity, and hoping that the market will trade the coin with the same value it has been pegged to. Then there are other stablecoins that are governed by creative internal protocols that try to stabilize the coin every time there is a market fluctuation.
One of the biggest concerns for these stablecoins is that in the future, governments such as the US will launch their own digital coin. When this occurs all of the stablecoins remaining in the market that are pegged against USD fiat will likely disappear. It is unlikely the public will keep buying coins pegged against the USD from a private company when it can be bought directly from Uncle Sam. Another issue is that stablecoins using predictive protocols carry a significant risk of crashing to zero and potentially leading the global economy into another depression. This is due to the fact that no one can really continually forecast all the ways the market will react. 50 years ago, there was no blockchain and no internet, who knows what we will have 50 years from now.
“It is not reasonable or prudent to have a decentralized protocol that today claims that it can cope with any future scenario, including those that are completely unknown today,” Regev said. “To ensure that future digital currencies will be adopted by Main Street, we must have a new generation of stablecoin that capable to combat with any scenario, one that has the ability to eliminate any volatility in the first place as well as protect against long-term inflation."
A photo accompanying this announcement is available at
Globe Newswire: 15:54 GMT Thursday 6th December 2018
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