PegNet is bitcoin among stablecoins

PegNet is a decentralized stablecoin network. It consists of pAssets and PEG, where PEG is PegNet’s free floating native token. A pAsset is a pegged asset, and those can be pegged Ether (pETH), pegged Gold (pGLD) or pegged USD (pUSD), just to give you a few examples.

pAssets are so-called synthetic assets, which prices reflect — and are an average of — the prices you can find on DEXes, CEXes, Coingecko etc. The role of the miners in PegNet is to simply publish price records, which they have obtained using APIs of their choice.

If all of the price records, the miners are publishing, would have to be secured one by one on the Bitcoin blockchain, that would cause congestion as too many transactions/too much data would be waiting in the mem-pool before being included in the next block. It would also cost transaction fees for every document.

When you have millions of records, that need to be gathered, it’s convenient to use the Factom protocol, which is a simple data layer, that has been around since 2014. Think of Factom as “a blank piece of paper” where anything can be written. The data on this layer is private, but it’s being aggregated every 10 minutes, where it’s hashed into blocks of entries. Imagine it being anchored into the Bitcoin layer, and that happens with a single transaction.