Introduction to Dai

Dai is an asset-backed, hard currency for the 21st century — the first fully-decentralized stablecoin on Ethereum.

Stablecoins represent a fundamentally new approach to the idea of digital money. A stablecoin is a cryptocurrency that has low volatility against the world’s most important national currencies, potentially unlocking large benefits for the entire Internet.

A decentralized digital economy needs a stablecoin to function. If you borrowed 100 bitcoins two years ago to start a business, just imagine how unhappy you might be right now. Dai is the solution to this problem.

1 Dai is worth $1 USD.

An autonomous system of smart contracts specifically designed to respond to market dynamics ensures that this essential stability property is continuously maintained. No one can alter the core mechanics of Dai, making it a safe and predictable form of money.

Each Dai is backed by some valuable asset held in the secure Maker smart contract platform. Anyone can lock their tokens up as collateral and issue Dai against them.

As “digital assets,” cryptocurrencies like bitcoin and ether have unprecedented features: they’re portable, fungible, durable and tradable. They’re certainly valuable. But they’re not quite perfect.

To realize the potential of blockchains, we need a stablecoin. Market-based dapps will directly benefit from the launch of Dai, enabling the ecosystem to approach a new stage of usability.

Augur co-founder Joey Krug shares his insights on Dai:

Cryptocurrency has captured the imagination of the world; it is the next step in the evolution of money. Maker leads the way with Dai.

We’re excited to launch Dai on December 17th. We are ready to bring a fully decentralized stablecoin to Ethereum.

There are a few primary ways to obtain Dai.

Related posts:

Poppy landswimming for a good back scratch.. “A Photo a Day 131” is published by The Solitary Cook.

In my ongoing education of cannabis and mental health, I’ve been learning more and more about CBD. What is CBD? CBD stands for Cannabidiol and is one of the compounds in cannabis with significant…

Reflecting upon a project (still ongoing) that I did with ATeam last year, I realized a few things that I, as owner of the backlog, could have done towards a better result. The project’s been delayed…