E 81 - Kowala - world’s first autonomously stabilizing cryptocurrency - Eiland Glover - CEO and Cofounder of Kowala
E 81 - Eiland Glover - CEO and Cofounder of Kowala
A Family of Distributed, Self-Regulating, Asset-Tracking Cryptocurrencies
kUSD is the stable-value payment token for Kowala's kUSD blockchain. The total number of kUSD expands and contracts depending on real-time market conditions.
The Kowala Protocol is our proposed method for creating a new family of cryptocurrencies which maintain stable values while retaining other benefits of cryptocurrencies, such as decentralization, security, privacy, speed of transfer, and low transaction costs.
The Kowala Protocol defines a method for constructing a family of distributed, self-regulating, asset-tracking cryptocurrencies called k Coins .
Each kCoin is designed to be traded on open exchanges and to maintain a close to one-to-one value relative to any widely traded asset such as a currency (USD, EUR, JPY, etc.) or other asset. Each kCoin is identified by a symbol consisting of the letter k followed by the symbol of the underlying asset. For example, the kCoin of USD is kUSD, that of EUR is kEUR, and so forth.
kCoins constantly gather market information from publicly available sources and regulate their value through three core mechanisms: minting variable amounts of coins, applying variable fees, and obtaining feedback from an active and well-informed trading market. In time, these mechanisms always return each kCoin to parity with its underlying, tracked asset. Anticipation of a kCoin’s eventual return to parity, in turn, has the potential to create pure arbitrage opportunities for traders seeking to profit from slight fluctuations in kCoin market prices.
We chose the codebase of the Go Ethereum client3 as the starting point for the development of kCoins in order to access both Ethereum’s strong feature set (especially its sophisticated smart contract facilities) and the collective abilities and ongoing efforts of its development team. On top of this foundation, each kCoin would add the value stabilization and market observation features described above. Finally, to achieve ultra-fast transaction processing performance, we have replaced the Ethereum consensus protocol with Konsensus, an implementation of PBFT derived from Tendermint. Because every kCoin will need a robust exchange market to function properly, each kCoin is implemented as a distinct, independent blockchain with its own tokens, smart contracts, mining community, etc.
- State of the Stablecoin: Talking kUSD and More with Kowala CEO Eiland Glover
- Byline: Asset-Backed Stablecoins Probably Aren't Stable
- Eiland Glover:
- Eiland Glover is the CEO and Cofounder of Kowala, creator of the world’s first autonomously stabilizing cryptocurrency: kUSD. Eiland has spent his career creating systems and companies at the intersection of finance, technology, education, game theory, and human psychology. He is a firm believer that new technologies must be consciously designed and utilized to empower humans. In 2012, Eiland learned about bitcoin and wondered why this amazing technology had not become ubiquitous. He co-created Kowala based on his belief that a decentralized stable coin is necessary for the mainstream adoption of cryptocurrencies.
- Kowala has created kUSD, the world's first autonomously stabilized cryptocurrency with the fastest, most efficient blockchain ever. This next-generation cryptocurrency has the ability to change the way we exchange as a reliable one-to-one alternative for fiat money. Using the Kowala protocol, kUSD uses advanced stability algorithms to ensure that it remains pegged to the value of the U.S. dollar. Learn more at kowala.tech.