Review on xDai by Cesar Medina
Blockchain for fast and stable transactions
In order to understand what xDai is, we need to know what DAI is, which is a stable currency that is always equal to one dollar. Let's not confuse DAI with the Tether, since it is created in a decentralized way and works differently, guaranteeing better stability. In summary, it is an ERC20 token of Ethereum but the xDai of which we will talk is but the blockchain itself or a sidechain with its own consensus mechanism where we can transfer value to and from Ethereum. Which means that xDai is both a chain and a coin. This blockchain is specially designed to make transactions faster and more feasible. In addition, they use the STAKE token for the management of the PoS consensus algorithm and incentivize the validators and delegates who participate. This would no longer be a stable token.
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Pros
- Sidechain compatible with other Ethereum-based blockchains.
- System for fast and stable transactions.
- Stable xDai token with value 1:1 respectively with the dollar.
Cons
- The STAKE token is not that relevant despite being used for community incentive.
