On Stablecoin: Ecosystem, architecture, mechanism and applicability as payment method

Stablecoins have enabled the rapid growth of decentralized payments and the birth of the new generation of payment system with cryptocurrencies and Blockchain technology. However, while some studies have investigated the price-performance or role of Stablecoins, a comprehensive overview focused on the full context, stabilization mechanisms, and payment applicability of Stablecoins is still missing. This paper first summarizes the definition and the current state of Stablecoins and then presents the relative ecosystem. More precisely, after summarizing the system structure and stability mechanism, we discuss its applicability for payment. The overview proposed in this paper represents the most comprehensive summary of research on Stablecoin. We identified that the asset-backed Stablecoins is the most efficient and widely used Stablecoins. On the other hand, the cryptocurrency-backed Stablecoins are currently the most balanced applicable to the original concept of Stablecoins. Again, the algorithm-backed Stablecoins have the most potential for development, though they hesitated without real collateral or deposit reserves and are potentially prone to collapse. Finally, we conclude and present possible future trends for Stablecoins.