There is a new player in the stablecoin industry; Element Zero. It brings on board a brand new methodology, a protocol which eliminates volatility and at the same time retains the aspect of decentralization and retains purchasing power. It is the perfect solution to the woes that have befallen the cryptocurrency industry in recent history, including stablecoins.
Element Zero Network, a non-profit organization, is expected to shape the future of the stablecoin industry moving forward.
Typically stablecoins are backed by fiat currencies or commodities or, they are either partially collateralized by technology, or ‘stabilized’ by technology alone; regardless of the model, all of today’s stablecoin methodologies are susceptible to market volatility and/or instability. Also, the fact that they are pegged on other instruments makes them centralised, which means the users do not have a complete say over them.
What are stablecoins?
Before looking at Element Zero, it is good to first understand today’s stablecoin solutions. Stablecoins are cryptocurrencies. But as the name suggests, they were designed to be stable and immune from market volatility in order to enable reliability and usability as a form of payment. However, they did not achieve full stability since the instruments they are pegged on are themselves affected by market volatility. They are only more stable compared to the other cryptocurrencies but not 100% stable.
Stablecoins pegged to currencies are susceptible to market conditions in the worst of cases we have seen hyperinflation completely topple some government backed currencies. Stablecoins may also be collaterized by other cryptocurrencies, but as we have witnessed in the last twelve months, reserve values can be impacted by market uncertainty, putting reserves at risk of being insufficiently funded. The last breed of today’s stablecoin are not actually “backed” by anything other than the expectation that they will retain a specific value and requires that participants believe demand will increase in the future. If demand stops growing, the stablecoin will not be able to maintain its stability and thus, is vulnerable too.
So, what is Element Zero?
Element Zero is a not-for-profit next generation payment network and algorithmic stablecoin creation platform. Element Zero enables businesses, organizations and even governments to create their own stablecoin, free of charge, providing a new way to pay for goods and services securely and with stability unmatched today. It uses a completely new methodology known Stability Protocol Methodology to keep it completely stable and decentralized without pegging its value on any particular collateralized asset.
In its bid to help drive awareness of this totally new stablecoin, Element Zero has launched a worldwide ambassador program to help spread the word about their new stablecoin platform and stablecoins.
Element Zero stability protocol methodology
The development of the new protocol methodology by Element Zero was a real breakthrough when it comes to giving stablecoins an edge above market volatility.
Element Zero’s launch came right on the heels of 2018 cryptocurrency nightmare. In 2018, cryptocurrencies lost more than 2/3 of their market value due to their vulnerability to the market volatility. This has even affected the stablecoins that have been in the market since most of them protect their liquidity with other assets like fiat currencies that are also vulnerable to volatility.
Advantages of Element Zero Stablecoin Platform
The main advantages of Element Zero network are:
- Element Zero’s stability methodology provides a universal model for the stability of the coin, in any market scenario.
- Governments and institutions can develop their own stablecoins using Element Zero’s platform providing these organizations with their own stablecoin that leverages the Element Zero methodology.
- Element Zero is a not-for-profit, which means that profits are not driven to the already advantaged, rather, it directs profits to the disadvantaged, creating a distribution of wealth that current models do not.
In summary, the Element Zero Network system represents a new age of payment services and stablecoins. Leveraging the stability and liquidity protocols, people from all walks of life will benefit not only from this innovative new breed of stablecoins, but the profits from the stablecoins will redistribute wealth to the needy which most certainly does help make the world a better place.