MobileCoin Launches Electronic Dollars

In partnership with stablecoin platform Reserve, privacy-focused cryptocurrency and payments company MobileCoin has introduced a stablecoin nicknamed “Electronic Dollars” (eUSD). According to the company, eUSD is specifically created to safeguard users’ confidential transactional data and is fully collateralized.

The stablecoins USD coin (USDC), Pax dollar (USDP), and trueUSD, according to MobileCoin, are used to support eUSD (TUSD). End-to-end zero-knowledge encryption is believed to be used for each transaction’s encryption. In other words, zero knowledge proof-based encryption ensures that only the parties to a transaction may view their own transactional data.

The MobileCoin blockchain, which according to MobileCoin is designed for mobile devices, is the foundation upon which the stablecoin eUSD is based. It appears that MobileCoin was initially intended to be integrated with the Signal mobile texting programme. Therefore, eUSD will carry over MOB’s features, however users of eUSD will pay transaction fees in eUSD rather than MOB (a fixed $0.0026 per transaction).

According to our knowledge, no project has developed a native stablecoin with privacy features that is a first-class member of the ecosystem and never conventionally necessitates the use of ‘non-private’ transaction technologies. In other words, nobody has truly invented a private digital dollar as of yet, according to MobileCoin’s eUSD white paper.

The MobileCoin Foundation serves as the main governing organization for the eUSD, which appears to have a centralized governance structure. The foundation chooses “governors” with the power to create and destroy eUSD.

The stablecoin’s collateral is kept in Safe, formerly known as “Gnosis Safe,” a well-known Ethereum multisignature wallet. Governors only authorize the creation of new eUSD after verifying that an equivalent sum of collateral has been sent to the Safe wallet.

Anyone can look at the contract holding this basket of collateral to see what the balances are right now. It is a Gnosis safe, which Henry Holtzman, MobileCoin’s chief innovation officer, described in an interview as one of the most well-liked Ethereum contracts for keeping assets.

Similar to this, when a user redeems eUSD, the governors release the corresponding collateral and the token is “verifiably burned.” Burned eUSD must be transmitted to a “burn address” in order to be “visible” for transparency purposes but “unspendable.” This is known as verifiable burning.

However, it will not typically burn or mint users on a regular basis. Anyone looking for eUSD would just buy it on the market. The ones producing a lot of eUSD would be approved liquidity providers (LPs).

MobileCoin’s CEO and founder, Joshua Goldbard said that the individual’s experiences are substantially easier than those of liquidity providers. Electronic Dollars are being produced in large quantities by liquidity providers, and people are just purchasing them on an exchange.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing