Review on xDai by JB CRYPTO
xDai eliminating the volatility of cryptocurrencies
In the development of cryptographic projects, its creators face two great challenges: maintaining the stability of the value of the cryptocurrency and achieving its efficient operation to execute operations quickly.
Giving a solution to these two problems; POA Network achieved the launch of the xDai platform in the crypto market.
The xDai platform arises from a collateral chain interoperable with the Ethereum network and with the MakerDAO blockchain; whose cryptocurrency is Dai. The main characteristic of xDai is that it is a digital asset of stable value, due to its 1: 1 exchange parity in relation to the United States dollar (USD); that is, 1 xDai = 1 US Dollar.
What important characteristics can we highlight about this platform in addition to its stability?
• The platform handles two cryptocurrencies:
-xDai: used to monetize transaction fees, as value currency for financial operations and as a form of payment to purchase goods and services in affiliated businesses. Uses the POSTDAO consensus protocol.
-Stake: It is used as a guarantor of membership in the Proof of Stake mining protocol. It does not have a stable price; but determined based on the market price. It is used as staking currency to motivate the operations of block validators and generators.
• Offers low cost for operations performed on the network; due to its high scalability as it is housed in a decongested collateral chain.
• Allows asset transfer and payment management at high speed.
• Provides an easy interface to its users
• It uses the Ethereum virtual machine, relying on smart contracts to achieve the generation of xDai coins. For this, it serves as a link mechanism to support through deposits of funds in Dai that constitute the guarantee of issuance of xDai.
Without a doubt, the xDai ecosystem has everything that we look for in a digital currency: scalability, speed, low cost, security and multifunctionality.
Pros
- It is protected from the volatility of the exchange market
- It is a protocol free of external control
- Brings together two chain technology under a single coin
- It is a protocol highly compatible with other chains
Cons
- No downsides
