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The UST coin, created by Terraform Labs, is different from tether and USDC in a key method — it isn’t backed by actual US dollars, but rather is what’s known as an algorithmic or decentralized stablecoin. (Tether’s US reserves have come underneath scrutiny in the past, with there being some conjecture over how many dollars it actually holds — however it is US greenback backed in principal.) For Terraform Labs, the thought was that by way of a number of clever mechanisms, plus billions in bitcoin reserves, the UST’s dollar peg may very well be maintained with out it having to be backed by the dollar.
Digitization means that you can simply and endlessly create an ideal copy of something, making it harder for creators to be compensated for their work. (Naturally, there are authorized cures for copyright infringement, however that’s a special story.) The band Kings of Leon, as an example, will promote its next album as an NFT for around $50, for which you’ll get both a physical and digital copy of the music. And, naturally, the added prestige of being ready to inform your friends that you just own the token that connects to the album.