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.
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.