In this article, What is DAI Coin? We will answer the question and provide detailed information about the project.
What is Dai Coin?
Have you heard of the Dai stablecoin and wondered how it works? In this post I will examine how it works and why I believe it to be one of the most important cryptocurrencies. I will also show you how to buy and store it safely.
Dai is a stablecoin. It aims to be worth 1 usd. So 1 usd = 1 dai. What’s unique about Dai is that it is completely decentralized and uses smart contracts to maintain its stability.
Perfect as currency, as dai will always be worth about 1 usd. You don’t have to worry about spending your Dai just to increase its value in the future. One of the main reasons why Bitcoin is such a good store of wealth is because of a belief that its value will increase. Many people don’t. But with Dai, you are free to spend it and use it as your currency.
There are over 1.8 Billion people worldwide who do not have access to a bank. This allows these people to have some sort of value without having to have a bank account. Because it is decentralized, you can store Dai in a wallet yourself and no one can close or block this wallet. It is always yours.
Protection Against Hyper Inflation
Hyper inflation is caused by the government printing so much money that it basically becomes worthless. Currently happening in countries all over the world. In these countries, people cannot buy a loaf of bread without having to carry bags of cash.
Dai can help prevent this. It is worth about US $ 1. And it will be worth $ 1 in the future. So you can use it to store value and protect yourself against hyper inflation.
Programmable
For example, if you have to pay a large number of people every day, you could write a simple script to do it for you. And since Dai is decentralized, you can send Dai anytime, any day of the week. No matter if it is a bank holiday or Sunday, Dai will always work.
Cheap and Easy to Ship
You can send Dai to anywhere in the world within minutes. And it will only cost a few cents. International wire transfers can take days to complete and can cost up to $ 10.
What Is Dai A Stablecoin?
How can Dai become a stable cryptocurrency? There is at least $ 1 worth of crypto for each Dai supporting it. Unlike other Stable coins that rely on a collateral company, Dai uses smart contracts to handle the entire process. There is no single company controlling Dai.
So how does it work? A user opens what is called CDP (Margined Dept Position) with Maker. This user deposits ETH or other crypto into CDP and earns Dai in return depending on the rate. The user can reclaim Ethereum, but deposit Dai. And the amount of ETH they will get back is determined by a rate. These rates help keep Dai’s price at 1 USD. Simple economics and mathematics.
As a Dai user, you don’t have to worry about how this works. You can buy Dai on any exchange and know it will be worth close to $ 1 in the future.
To get the latest news To our Telegram channel, To our Twitter page and To our Facebook page You can subscribe.
