Factom, an open-source platform running on the Bitcoin network, launched at the end of August the decentralized, non-custodial and auditable PegNet network, which allows trading with cryptocurrencies linked to the dollar, Mexican peso and Brazilian real, among other fiat currencies.

The solution seeks to provide a value transfer network, simplifying the <a href="https://www.cryptoknowmics.com/crypto/cryptocurrency-payment-system-the-way-forward/">conversion</a> process between one type of asset and the other, allowing the user to make payments without the need for a third party.

The PegNet team points out that the platform allows conversion and transactions with 32 different assets, including stablecoins, cryptocurrencies or local currencies, with an average commission of $1 per 100 transactions.
<h2 style="text-align: center">Assets available on the network</h2>
<img class="aligncenter" src="https://www.criptonoticias.com/wp-content/uploads/2019/09/pegnet.jpg" />

The platform allows the user to make payments from anywhere in the world, using any of the crypto actives available on the PegNet network. The merchant who receives the transaction also has the option of converting those payments into the assets he needs. You can choose between cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, stablecoins or fiat currencies such as the dollar, euro, and the Mexican peso.

To process payments, to carry out transactions in a global way without borders, to exchange between assets without needing to resort to a house of change or to preserve the patrimony, are some cases of use described by the company.

Besides, in its <a href="https://pegnet.org/docs/whitepaper.html">white pape</a>r, the team of developers proposes the creation of asset baskets that can be maintained by a policy or program designed by each user, according to their convenience. These baskets may contain several assets and may be broad or limited in scope.

<em>A simple example of a fiduciary currency could be a basket of 5 currencies of equal weight such as USD, EUR, JPY, GBP, and CAD rebalanced daily. For example, USD 1,000 is converted to USD 200 of each asset with daily midnight rebalance. The rebalance converts the surplus of any asset that is above average. Only the surplus is converted.</em>

<em>PegNet White Paper</em>

The design of their stable systems and the value of the baskets may vary according to the criteria of each user and their assessment of the specific type of risk. The network supports extensive basket options, weighting strategies, as well as flexible rebalancing strategies and times.
<h4>How does it work?</h4>
The network operates on a chain of open-source blocks under the Factom protocol. It is a decentralized system with encrypted data stored in nodes and not as intelligent contracts.

It uses a unique Job Test algorithm called LXRHash that is for CPUs only. Miners are rewarded in PEG, the native ecosystem token. It mines standard and accessible hardware with 90% less power than Bitcoin.

Although built on a layer of the Bitcoin network, it is interoperable with Ethereum and other blockchains.

For asset conversion, the user must select his source asset on the platform and point to the target asset. For our example, let's suppose that the user selects BTC as his source cryptocurrency and gold (price in grams) as his target asset. After the selection, the value of each asset is defined by the Oracle, and if the funds corresponding to the determined value, the source asset is destroyed, and the target asset is created.

The system has PegNet Token (PEG), which has a determined price, collected from the markets, and documented in the Factom chain as the Oracle Price in USD, for each asset listed on the platform.

PegNet uses the Job Test protocol to collect market price data. This means that the network can access real-world market data. Once collected, oracle data is published in the Factom block. The PegNet Oracle algorithm takes advantage of the 10-minute blocks of the protocol and has a flexible difficulty mechanism to fit within the Factom block structure.

The PegNet wallet operates under the Factom protocol so the user can access the assets listed on the platform to do their trading. This only involves the user and the construction of conversion by the user.

Factom is a decentralized protocol built as a layer on the Bitcoin network, which increases the potential of distributed book technology, taking into account that the transaction system does not work with massive data storage. In Factom, it is the space that counts.

Startup creates a network of cryptocurrencies anchored to some coins

I am an industrial engineer specializing in blockchain. Enthusiast of cryptocurrencies and writing the latest news regarding the Crypto world.

Startup creates a network of cryptocurrencies anchored to some coins

Top Picks