Review on Dai by francis fernandez
DAI: an Ethereum-backed cryptocurrency with value pegged to the dollar to enable multiple exchanges and business opportunities
DAI is a digital currency that operates on the Ethereum network and whose platform aims to offer decentralized financial services under a reliable, secure and fast blockchain.
Token:
DAI is a digital asset that falls within the stablecoin category since its value is linked to the US dollar. It is a cryptocurrency of exchange parity with respect to the dollar; that is, 1 DAI = 1 USD.
DAI is an ERC-20 token and is backed by the ETH cryptocurrency and is compatible with other ERC-20 tokens.
Technology:
Because DAI operates on the Ethereum chain, its technology is based on the use of smart contract coding to maintain price fairness and transparency in its operations and ensure the decentralization of the digital currency, as it is not regulated by any third party.
Utilities:
• It allows the use of cryptocurrency as an investment instrument to generate returns.
• Provides the opportunity for users to obtain decentralized financing.
• Serves as a means of electronic payment in multiple merchants monetized in dollars.
• It is used to trade crypto assets and FIAT currency.
• It can be used for staking FIAT money and digital assets.
• Saves time when making online credit applications without resorting to conventional banks.
• Allows you to acquire dollars through the use of a cryptocurrency.
• Used to make transfers in cryptocurrencies and FIAT money.
Pros
- It is a stable currency that is backed by Ethereum, in addition to having an equal value with the US dollar of 1: 1.
- It is a tool to obtain financing online and without intermediaries.
- It is a decentralized currency not subject to the regulations of banks and other entities.
- Simplify loan application procedures and save time.
Cons
- There are no disadvantages in its use.
