In 2023, Cardano plans to introduce an algorithmic stablecoin that will be backed by extra crypto collateral. This "over collateralized" stablecoin was introduced by COTI and the proof-of-work (PoW) blockchain. A Layer 1 protocol called COTI would supply the fundamental building blocks for a blockchain. It has been chosen to call this stablecoin "Djed," and it is anticipated to launch on the COTI mainnet sometime in January 2023.
The Cardano blockchain, which was introduced in 2017, can be used to develop protocols, decentralized applications, and smart contracts. On CoinMarketCap, its native ADA coin is ranked eighth with a market cap of $10.3 billion right now (roughly Rs. 84,888 crore).
Djed must pass a number of demanding technical stress tests and testing before it goes live. The US dollar will serve as the stablecoin's benchmark. SHEN and ADA will be used as the reserve cryptocurrencies.
Select partners and decentralized exchanges will integrate the stablecoin (DEXs). This will compensate users who provide liquidity through Djed.
We require a safe haven from volatility, as demonstrated by recent market events, and Djed will provide this safe haven in the Cardano network. We not only need a stablecoin, but also one that is decentralized and has on-chain proof of reserves, according to COTI CEO Shahaf Bar-Geffen, mentioned in a CoinMarketCap report.
Cardano's Vasil update ultimately went live in September 2022. The hard fork was intended to enhance the ecosystem's capacity for scalability and overall transaction throughput.
Cardano has already made a lot of strides as of right now. On the blockchain, there are more than 3,200 scripts written in Plutus, the native smart contract language utilized by Cardano.
More than 50 million transactions have been processed on the blockchain, and 1,100 projects are currently being built with its help.
