Stablecoins are a type of cryptocurrency whose value is pegged to another asset class, such as a fiat currency, commodity, or financial instrument, to keep a stable, steady value. They aim to provide an alternative to the more volatile cryptocurrencies like Bitcoin and Ether, and to address the problem of cryptocurrencies unpredictable and fluctuating prices. Stablecoins can be backed by specific assets, such as fiat currencies or commodities, or use algorithms to adjust their supply based on demand. There are several types of stablecoins, including fiat-backed stablecoins, commodity-backed stablecoins, and algorithmic stablecoins. Stablecoins can be used as a currency and are cheaper for making transactions than traditional fiat currencies, and are available to a network. However, stablecoin issuers have yet to be proven to maintain adequate reserves to support a stable value.