Review on Dai by Gabriel Medina
DAI stablecoin
The DAI cryptocurrency is a stablecoin, launched by MakerDao, which is pegged to the dollar 1:1. That is, 1 DAI is 1$ USD, therefore, DAI becomes a highly relevant project within the world of cryptocurrencies and also in decentralized finance. Dai is based on the Ethereum network and is backed by Ether, this means that it is decentralized since it does not depend on any government, bank or other centralized third party and is simply maintained by smart contracts.
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DAI does not depend on any bank, therefore, anyone in the world can transform their cryptocurrencies and access other financial functionalities within decentralized finance. This guarantees financial independence for everyone.
DAI is a solution that serves us as a means of sending money much faster than the usual means where we will be able to complete a transaction from anywhere in the world in just a few minutes since many currencies worldwide are suffering much more inflation than the dollar.
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Overall, DAI is a necessary tool to build a masterful decentralized lending platform on the Ethereum blockchain. And this has undoubtedly helped the ecosystem of decentralized finance have been in full growth.
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Pros
- It is a decentralized and secure stablecoin.
- It does not depend on any governance so you will be fully confident that you will not lose your funds.
- DAI is one of the most accepted currencies in the world DeFi and DEX.
- You can move your DAIs globally and pay in a large number of physical and online stores.
- Accessing the system is relatively easy without the need for KYC verification and giving data to third parties.
Cons
- Complex for beginners who hardly know the DeFi world.
- It may be transparent and immutable but security is not fully guaranteed as it can be hacked.
