POA Network and MakerDAO Launch xDai Chain, the First USD-Based Blockchain

POA Network Launches the First Ever USD-Based Blockchain

The POA Network, an open Ethereum sidechain with Proof of Authority (PoA), has today launched its first-ever blockchain where the native asset of the chain is USD based.

Currently, xDai Chain, an Ethereum compatible sidechain, uses Dai as the native currency of the network. It combines POA Network’s technology and interoperability knowledge with Dai’s permissionless and crypto-collateralized USD-stablecoin.

Supported by all the features of the Ethereum network, xDai Chain can incorporate blockchain explorers like BlockScout, hardware and mobile wallets, and smart contracts.

The Aim of the Partnership

POA Network is in charge of controlling their interoperability protocol and ensure that it is successfully applied to the DAI stablecoin. The leverage is essential to help create and launch xDai Chain network.

XDai Chain and the XDAI coin aims to create a blockchain network that will take all of the benefits of Ethereum-based blockchains and remove the component of USD-instability. XDai Chain will also be in a position to leverage all the open-source tools built for the Ethereum ecosystem; this includes all of POA Network’s infrastructure and tools.

Rune Christensen, the CEO, and co-founder of MakerDAO stated that,

“With xDai Chain, POA Network managed to create a full toolkit for DApp developers who are looking to improve the end user experience. They have done so by allowing people to transact with ease and pay gas fees in a single token.”

He added that XDai Chain provides an excellent opportunity for developers to launch DApps with Dai as the exchange medium.

Why XDai Chain?

XDai Chain offers an extensive range of use cases to blockchain developers. One of the major concerns that most developers experience is the incapability to have a USD fixed value for their DApp related payments. Currently, DApp users have to pay fluctuating payments in ETH or a specific ERC-20 token whose value is inconsistent, often leading to a poor DApp user experience.

However, with xDai Chain, this will no longer be an issue because developers will now be capable of fixing their payments in XDAI. XDai Chain will have quick transaction time, easy scalability, low gas costs, and so much more.

Due to POA‘s expertise with sidechains to Ethereum and interoperability between networks, they managed to create the Token Bridge between POA Network and Ethereum, which has been operational since May 2018.

Recently, the POA Network made the “ERC20 <-> Native”. It is a new type of the Token Bridge where locked ERC20 tokens on Ethereum network can mint native tokens on a new empty (“hard spoon”) sidechain with no emission or premine.

According to Igor Barinov, Tech Lead of POA Network, xDai Chain provides a new platform for DApp developers and the community. Through the use of different tools created by POA Network, users can bridge their Dai to the new xDai Chain and use a single token for their transactions.

On xDai Chain, the native coin will now go by the name XDAI, and transaction fees will be in fixed Dai or USD effectively. DApp developers can now gas costs fixed in USD terms, giving them more certainty around the USD cost of using an Ethereum-based blockchain.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,467FansLike
2,795FollowersFollow
4,230FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Compound Protocol to Roll Out Decentralized Oracles Dubbed ‘Open Price Feed'

Compound, one of the most popular defi protocol, is all set to introduce open price feeds for lending on its platform using a decentralized...

$2 Million Slippage & Surge in Ether Price on Uniswap Helps Net $40k in Profit

A Uniswap user was able to profit $40,000 thanks to $2 million of slippage and the price of Ether surging north of 15%. It all...

Irish Govt to Target Cryptocurrencies Use in Money Laundering And Terror Financing

The Irish government aims to implement stricter and more stringent laws to curb money laundering and terrorism financing in its financial system, including digital...

Interactive Brokers to Settle $38 Million in Penalties for Violating AML Procedures

Interactive Brokers LLC, a U.S based brokerage that skyrocketed between 2013 and 2018, has agreed to settle a total of $38 million with the...

Ethereum Gas Price Hasn’t Been This High Since its Launch

The price of Ether is back to making its way to $400 level as it hovers around $391 in the green with just $840...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today