Review on Maker by Celil Ozturk

Name: Maker
Item: Maker
Rating: 5

September 16, 2018

By contrast, Maker is completely transparent about development of its…

By contrast, Maker is completely transparent about development of its blockchain project. For example, you can find over two years of semi-weekly meeting recordings on the MakerDAO SoundCloud page.
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MakerDAO creates DAI using CDP smart contracts to collateralize the assets. This means it’s backed by ETH instead of fiat currency, and the CDPs ensure there’s always enough ETH assets on hand to cover the DAI supply. Essentially, CDP contracts hold ETH, and if a black swan event occurs, such as ETH crashing before anyone has a chance to react, MKR is liquidated on the open market to cover the losses.
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Maker is also working hard throughout 2018 on crypto partnerships. It partnered with OmiseGO, Digix, Request Network, Tradeshift, and CargoX. The more partners Maker gathers, the more viable its stablecoin becomes.
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Pros

The most common response when someone is asked about the Maker project is: “Well it looks cool, but it’s too complicated and I don’t get it.” The following seeks to simplify how Maker works and to walk you through the system in an ELI5 fashion. I’m even going to write things like “ELI5 = explain it like I’m five,” because that’s how basic this is going to be. This is your parents’ Maker tutorial. If you’re looking for more details, technical explanations, or are just fresh out of books written in Haskell, I recommend the Purple Paper.

Cons

Rather than focus on what Maker is, this explanation focuses on the first product of the Maker organization. This product is called Dai. Dai is type of a stablecoin. The concept of a stablecoin is fairly straight forward — it’s a token (like bitcoin and ether) that exists on a blockchain. But unlike bitcoin or ether, it has no volatility. “How can something have no volatility, volatility is relative!” Good catch. The asset that Dai is trying to be stable relative to is the U.S. Dollar. So, to summarize, one Dai equals one dollar. Dai is set to be the first working consumer-grade stablecoin.