Center Consortium members Circle and Coinbase recently announced a major update to the USD Coin (USDC) protocol and smart contract, significantly facilitating the use of USDC in payments, trading and peer-to-peer transactions.
USD Coin is a stable ERC-20 currency introduced by Circle and Coinbase. It is issued by regulated and licensed financial institutions that maintain full reserves of the equivalent trust currency.
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About USD Coin Version 2.0 Update
The upgrade also adds additional security infrastructure to the USDC’s smart contract. These advances come at a time when USDC, the fastest growing stable regulated currency, has seen unprecedented adoption, surpassing $1.4 billion in market capitalization and more than $90 billion in chain transaction volume.
The USD Coin (USDC) will have a major revision related to payment processing in its recently announced update. The Centre Consortium informed users that USDC 2.0 will provide „gas-free shipping“ as well as improved security for their smart contracts.
To date, USDC has required users to maintain a balance in Ethereum (ETH) to cover the costs of transaction fees (often called „gas fees“). These fees had to be paid at ETH, which meant that users had to maintain both assets.
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Benefits of the new update
The benefits of the new USDC update allow users to avoid gas rates by delegating payment to a new one. In other words, gas rates are paid by a third party portfolio, allowing the transaction to be done only with the USDC portfolio.
The upgrade is called „gasless send“ because it allows the user to complete the entire Bitcoin Champion transaction without ETH. However, gas fees cannot be completely eliminated because the Ethereum network requires them. The new update simply transfers those fees and then passes them on to the original user through a currency exchange.
While the new system cannot eliminate gas tariffs, it can provide a much more streamlined user experience. The Centre Consortium hopes that this will lower the entry barrier and increase the adoption of stablecoin by more traditional users.
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The announcement also indicates that USDC 2.0 moves much of the administrative work to multi-signature chain processes. This eliminates the potential for errors outside the chain and limits the manual workload for chain management.
With this innovation, digital wallet and application developers can create user experiences that more closely resemble the experience of existing mobile payment applications: customers will be able to send and receive USDC peer-to-peer payments using only USDC, with fees expressed. and paid in USDC. These simplified and enhanced user experience flows will accelerate the virality of making and receiving payments using USDC on the Internet.