PAX Token
The PAX token can be compared to other stablecoins as Tether, TrueUSD, and Gemini dollars. The PAX token is probably most similar to Gemini dollars, as both are regulated by New York State banking regulation.
Main Goal
Paxos Standard is designed to leverage the new innovations of blockchain technology to improve the function of money, while being supported by traditional infrastructure that can ensure it is trustworthy. In other words, as a regulated trust company and financial institution issuing a token backed by U.S. dollar deposits, Paxos can offer a token that combines the trust and stability of fiat currency with the utility and immediacy of digital assets.
Stablecoin
Paxos presents itself as a stablecoin where the price of their token called PAX will always be equal to 1 dollar. The team wants to make the Paxos platform into an advanced modern cutting-edge settlement platform. Having a regulated trust structure, Paxos is legally able to transfer assets and monies. Paxos was initially founded in 2012 as a bitcoin exchange called itBit, though the company later rebranded to Paxos and pivoted into a business focused on providing services using blockchain.
Paxos Standard tokens are issued and redeemed by Paxos. As a trust, Paxos issues PAX directly with no need for any middlemen. This enables more efficient operations,including shorter redemption windows (PAX can be redeemed for dollars within onebusiness day) and lower fees.
Interbank Settlements
The goal of the Paxos standard token is to “simplify settlement”. Paxos wants to become the standard for interbank settlements but has had its ups and downs in the process. Paxos was able to set up a gold settlement venture with Euroclear, one of the bigger players in settlement services, but this partnership was dissolved in July 2017.
Investors
In May 2018, Paxos raised $65 million from investors including venture capital firms RRE Ventures and Liberty City Ventures. Paxos is planning on using the cash injection to expand their operations providing blockchain-based services to financial institutions, specifically streamlining the post-trade settlement process.
Paxos Standard tokens are purposely designed with simplicity in mind. In exchange for $1 USD,1 PAX is issued. Similarly, on the redemption side, 1 PAX can be redeemed for $1 USD.
The exchange will always be one-to-one. Because of this simplicity, the whole system can be written as a basic smart contract, ensuring that it operates under these rules in a programmed way. (The token today lives on the Ethereum blockchain, but we can see potential value in a blockchain-agnostic future.)
As a smart contract on the Ethereum blockchain, Paxos Standard follows the ERC-20 protocol. Ethereum is a decentralized blockchain-based ledger that supports smart contracts; with over100,000 smart contracts, Ethereum is the most widely-used digital asset platform. A smart contract is a combination of data (e.g., a table of account balances) and programmed procedures for working with that data (e.g., a programmed procedure for transferring balances between accounts). Both the integrity of the data and the fidelity of procedure executions are ensured by the distributed consensus protocol of the underlying Ethereum blockchain.
The Company
A trust company is different from a bank, as it serves as a fiduciary that custodies users deposits and hence will always hold customer funds wholly segregated. All dollar deposits are kept in FDIC-insured U.S. banks or are collateralized by U.S. government treasuries.
End Goal
The end goal of the Paxos project is to limit settlement risks. The company wants to use blockchain technology to deliver modern day settlement solutions to the global capital markets, quickly, safely, and without hazard. Equal to the Gemini stablecoin, Paxos operates as a token on the Ethereum blockchain.
Gemini and Paxos
The two stablecoin projects, Gemini and Paxos, received the permission from a New York state regulator to launch their own stablecoins pegged 1:1 to the U.S. dollar. The Paxos Standard Token, also known as PAX, is a token that is supported one-to-one by USD deposits and accessible through the Paxos platform.
Ledger
As for using the Nano Ledger S, the first step towards setting up your device is unboxing it and checking if you have received all the accessories with the device. Once you have it unboxed, you need to configure it and initialize it before being able to use it. The process is quite simple and will hardly take about 20-30 minutes post which you will be set to use your Ledger Nano S device.
Before you start
Install the Ethereum app
Next steps
Setup guide video: here
Trezor
As for Trezor, installing is really simple. To properly install it users should attach the unit to the computer. After that continue with installing the bridge which allows the Trezor to join with the computer. The first step is to connect the Trezor to device’s USB slot with the cable given in the box. After that, go to myTrezor.com and proceed with installing the browser extension. Trezor can also be used on Android or an iPhone, or on a Windows or Mac computer. Now, initiate the extension and myTrezor will direct you to pick a PIN. After this, you will notice nine buttons but the numbers are hidden. After this, users should check the Trezor’s screen to recognize which numbers are in which place because it switches every time. Now set the PIN. Shortly after, Trezor should present a 24-word wallet “seed”. In short, one word at a time. Note down this seed and save it carefully. If your Trezor device malfunctions or is lost, you can utilize the seed to reconstruct the complete wallet.
Setup guide video: here
Exodus
First, we have Exodus, which supports a ton of other cryptocurrencies along with XAUT and is pretty straightforward and easy to use. Just download the app from the official site(exodus.io) and get straight into creating your wallet. Exodus stores your Private Keys on the machine you choose and not on any server, providing you with a relative peace of mind when it comes to the security of your coins.
Atomic Wallet
Another option is Atomic Wallet.
Atomic Wallet is a desktop wallet built with security, anonymity and decentralization in mind. Atomic Wallet was designed to leverage the potential of atomic swaps and become part of a fully-fledged decentralized cryptocurrency ecosystem. The “physical” wallet itself is a PC application that can be downloaded onto your computer. Your private keys and other data will then be stored on your PC in an encrypted form. This means you hold your own keys, which are encrypted and kept only on your own device, control your own funds and can efficiently swap tokens without needing to go through a centralized exchange.
This application then interacts with the blockchains of supported coins. For example, if you check your transaction history in the program, it looks it up on the blockchain and then shows it to you, rather than storing this potentially sensitive information somewhere.
The Paxos token is based on the Ethereum token standard, which means it can conveniently be stored in any ERC-20 supporting wallet
MyEtherWallet
For an online-based wallet, we recommend MyEtherWallet. The wallet offers a brilliant combination of speed, trustworthiness and simplicity, making it the most popular online wallet for ether and any ERC20-based tokens.
Simply visit myetherwallet.com and set up your wallet with a method of your choosing, just make sure to store your private key somewhere safe. It's wise to have it written down on paper in case your PC/notebook malfunctions.
The only downside to using an online wallet like MEW is that there are literally hundreds of phishing scams out there to get your tokens, so you better double check the address everytime and make sure to watch out for any malicious activity on your browser or PC.
