Realcoin a New Cryptocurrency Backed by Dollar
The launch of a new cryptocurrency called Realcoin which is backed by the US dollar has been announced by Bitcoin entrepreneur Brock Pierce.
Realcoin is meant to deliver all the advantages of the Bitcoin protocol to the dollar, it is able to make use of the Bitcoin network low cost transactions and is backed by the companies dollar reserves on a one-to-one basis.
This new digital currency is designed to remove the volatility, also getting rid of the complexity of the divisions of the coins, as one US dollar will be worth one Realcoin, not something like 0.001619 BTC at the current Bitcoin price.
This is not the first time that alternate digital currency is given this name, however this new cryptocurrency is not connected to any of these previous ‘Realcoin’ projects. Although, it is based on a concept that Coinaaa utilizes, an Altcoin backed by the Norway’s krone.
How it works
Every coin is backed by USD and together with block chain it makes Realcoin a very reasonable candidate to get some real attention. Mastercoin protocol makes is possible for the Altcoin, it provides the proper digital signature for every coin.
Realcoin will sustain live record of all USD in the reserve that will be authenticated by the block chain. It will be fully insured and secure. Every dollar will have a coin in circulation. The reserves will be completely auditable too.
In future, the company is planning to launch similar cryptocurrencies, backed by the euro and yen, to make the advantages of the Bitcoin protocol available to users of other currencies.