Review on Maker by Sergio Daniel Delgado
About Maker
Cryptocurrencies offer several and obvious advantages over traditional fiat money. Starting with decentralization on your platform, which prevents some centralized entity from controlling the currency. Thus avoiding artificial inflation due to financial manipulations.
In addition, the Blockchain of a large number of cryptocurrencies, also serve as the basis for the creation of smart contracts or smart contracts. So they would not only serve as means for the exchange of goods and services. But as fundamental tools of the new economy under construction.
However, despite these important advantages, cryptocurrencies suffer from a big problem. This is that the price of them is extremely volatile over time. Therefore, planning based on the use of a cryptocurrency becomes a complicated task.
That is why stablecoins such as Maker Dai are born, as a solution to take advantage of virtual currencies without volatility in value. These coins are backed by assets that keep their price constant over time.
In the case of Maker Dai, the asset that supports its value is the US dollar. Counting, according to Makerdao the organization behind the coin, a reserve of dollars Large enough to guarantee stability in 1: 1 equivalence against the dollar.
Pros
- Maker Dai is built within the Ethereum blockchain. Therefore, it has support from any digital wallet that supports the storage of ERC-20 tokens, including Ledger, Trezor, and MetaMask.
Cons
- In the crypto world we have a long list of unsolved problems. Among them are the scalability of our Blockchains, the lack of interoperability between them, and yes, the volatility in cryptocurrency prices.And while the first two problems are essentially technical in nature. The volatility problem has a lot to do with the financial maturity of the crypto market. Which is not armored against speculative manipulations by large capital owners. This is why stablecoin becomes so relevant. Well, they are a way of combining the best of fiat money with much of the best of virtual currencies. However, the method Employed by Tether for its centralized stablecoin, it causes the specter of manipulation to enter the cryptocurrency market.
