PegNet

Pegged tokens are generally useful for payments, treasury management, exchanges, and wealth preservation. A Pegged Token network defines a set of pegged tokens, which reflect real market assets such as currencies, precious metals, other cryptocurrency assets, commodities, etc. For example, a token pegged to USD can be used to make USD purchases, and both the buyer and seller can be assured of the payment with the pegged value will be very close to equal to the dollar equivalent. For companies holding cryptocurrency assets, the ability to convert parts of those assets into a dollar peg can help to preserve capital when the cryptocurrency market is low. Exchanges that deal only with cryptocurrencies can use values pegged to real-world currencies to create pegs to USD or EUR without having to deal with the traditional banking system to hold those assets. Tokens pegged to other assets like precious metals allow users to hold Gold or Silver values on a cryptocurrency exchange. Pegging to cryptocurrencies can facilitate transactions representing Bitcoin or other cryptocurrency values without the transaction limitations that might exist on the those blockchains. Pegging values to other commodities or assets are possible, expanding the use cases for a Pegged Token Network.