Owning stablecoins: Both the sender and the receiver must have a cryptocurrency wallet that supports the specific stablecoin. They can be purchased on cryptocurrency exchanges, often by exchanging traditional currencies or other cryptocurrencies.
* Initiating a transaction: The sender, wanting to make a payment, initiates the transaction from their wallet. To do this, they must provide the wallet address of the receiver and the amount of stablecoin they wish to transfer.
* Signing the transaction: The sender must "sign" the transaction with their private key. This digital signature confirms that they are the authorized person for the transfer and ensures the security of the transaction.
* Sending to the blockchain network: The signed transaction is then sent to the blockchain network where the specific stablecoin operates. Most popular stablecoins operate on existing blockchains, such as Ethereum, Solana, or BNB Chain.
* Verifying the transaction: The blockchain network, consisting of many computers (nodes), verifies the transaction. This process includes checking whether the sender has sufficient balance and if the signature is valid. Depending on the consensus mechanism of the specific network (e.g., Proof-of-Work, Proof-of-Stake), the transaction will be added to a new block.
