What is DAI?
DAI is a digital currency designed for high-volume transactions. It can be viewed as a distributed crypto-bond or digital coin that has the potential to be seen as a stablecoin by many.
The DAI platform is a smart-contract-based decentralized autonomous organization with the goal of building the world’s first sustainable, transparent and non-centralized economy.
The DAI DAO offers D AI holders a means to mitigate risk, liquidity concerns, and financial transparency concerns of the crypto-asset by pledging their assets, including currencies and assets in their digital wallets, to build a decentralized economy that remains strong regardless of the instability of the world’s most famous crypto market.
How does DAI work and what gives it its stability?
It is the world’s first stablecoin. It is also the first-ever blockchain-based stablecoin.
The founders at Dai believe that the main benefits of the coin are as follows: Stable price: This is achieved by setting the issuance of D AI at $5 billion per year and the supply at 2 billion coins.
The price of DAI will be pegged to the U.S. dollar. According to Dai’s website, the value of each coin will be determined by market demand.
Market demand will be achieved by strategic announcements and communication with the market.
Price assessment and price distributions: It will provide a price assessment of each coin based on calculations performed by a smart contract.
The smart contract will constantly assess coin values based on the price of fiat currencies, Bitcoin and Ethereum.
How can you use DAI?
What is the potential for DAI? Sberbank’s DAI: “The idea is to create a new type of currency that is safer and more secure,” explained Sberbank CEO German Gref. “Instead of relying on banks, the technology will make the money creation process much faster and more reliable.”
Stablecoins are an increasingly important innovation within the crypto industry as demand grows for ways to hold crypto-assets in a more reliable manner than the volatile prices of bitcoin. Sberbank’s D AI will replace the ruble in transactions on the Russian website to minimize volatility.
What are the benefits of DAI?
1. Quicker and less expensive transactions DAI, being an Ethereum-based stablecoin, can be sent to an exchange of another cryptocurrency within minutes rather than the hours or days that the volatile price of an Ethereum can cause.
2. Achieves perfect price stability DAI is constantly redeemed to fund the reserves in the smart-contract vaults, and thus represents a stable-price cryptocurrency. The basic DAI fee is 0.001% of the currency value every time you send it.
3. To be used in many popular use-cases DAI is the go-to cryptocurrency for people looking to use cryptos in their everyday life and spend DAI while shopping.
Where can you get DAI coin?
It is available for purchase on Binance, OKEx, etc.
What can you do with DAI? It has a set of plans for many applications. For example, It plans to make it available as a tool for decentralized prediction markets and to build decentralized exchanges with its smart contracts.
How is DAI different than other cryptocurrencies? It is not a digital asset and does not contain an arbitrary number of zeros or binary digits as a benchmark of a number. It is a cryptocurrency with smart-contract functionality which is backed by real-world assets held in the MakerDAO ecosystem.
What Makes DAI Unique?
DAI’s peg to the U.S. dollar allows it to maintain stability in the volatile cryptocurrency market, and reduce volatility with price changes of less than 10% per day.
The price of DAI is always pegged at $1, which gives traders and investors the confidence that they need to add this kind of asset to their portfolios.
It is a cryptocurrency that is pegged to assets with a relatively stable value. This means that you are less likely to be affected by price swings, as the currency will always maintain its value.
It is a cryptocurrency that is managed by a decentralized autonomous organization, rather than being managed by a private company. This process of developing DAI software is governed in a more democratic way via direct voting by the regular participants of the token’s ecosystem.
This week has been highly positive for the cryptocurrency markets. Rising geopolitical tension and a large cut in the value of the Chinese Yuan have not stopped the march of DAI.
According to the current market cap calculation. It is now the biggest cryptocurrency by market cap. Its increasing liquidity has made it an attractive investment for traders and investors who are looking for a long-term stable currency.
It is currently available on a couple of exchanges that allow the trading of fiat currency, including Poloniex, Bittrex, and HitBTC.