Today Carbon revealed that it had launched its stable coin named Carbon USED or CUSD on Ethereum blockchain. This is a stable cryptocurrency as the name suggests and is pegged against the US Dollar. Carbon has taken help of AZTEC protocol, a privacy program which enables real-time transactions on Ethereum platform. Carbon would be able to enjoy the benefits of AZTEC’s privacy technology for its stablecoin, CUSD.
Carbon would introduce this in the Ethereum mainnet in the post-mid 2019. As per the CEO of Carbon Sam Trautwein, this collaboration with AZTEC would develop the first ever privacy-focused fiat stablecoin on Ethereum Network.
“We think this is an important step in the crypto space,” he said. “In the era of big data and Cambridge Analytica, privacy is something people care about,” Trautwein added.
Carbon was founded by Samuel Trautwein who is at present its CEO, along with Gavin Mai (who is now CPO at Carbon), Miles Albert (CSO), and Connor Linn. It was on 12 September 2018 when the first announcement related to the launch of Carbon stablecoin on the Ethereum platform was made.
AZTEC is efficiently due to the adaptation of the cryptography process called ‘zero-knowledge proofs.’ It was made famous by Zcash, which is also a privacy coin. However, AZTEC is using a range of proofs to make the process even faster and ethereum network cost efficient.
Here is the process to follow if anybody wants to mint a private CUSD coin:
- One will have to sign up on the Carbon network and complete its a KYC drill successfully.
- Then the aspirant user/ client will have to make a USD transaction (either via wire or ACH) to any of Carbon’s partner banks.
- Once the parter bank receives this USD payment, Carbon will issue private CUSD with the help of a trust (managed under Carbon). This CUSD will be released to the client’s Ethereum address.
Asked on the rules and regulations attached to the mining of the private CUSD coins, the Carbon CEO said that there is no answer for that question in today’s time. The company is waiting for the response of the regulatory. However, he also mentioned that all CUSD’s users would get pass through a bank-level KYC verification.
Before AZTEC was founded, both of its founders Thomas Pocock and Zachary Williamson was running Creditmint. During this, they discovered a requirement and importance of privacy on public blockchains, and hence they came up with AZTEC in November 2018.