What is xDai (STAKE)?
The xDai chain is a stable payment blockchain designed for fast and inexpensive stable transactions. xDai is used for transactions, payments, and fees, and STAKE is used to support a Proof-of-Stake consensus.
xDai is the ideal cryptocurrency for everyday transactions and payments. The fees are extremely low, the payout is very fast, and the value remains steady at ~ US $ 1 per xDai. User-friendly tools make xDai easily accepted for both crypto and non-crypto users! Users only need xDai to complete the payment (a single stable token for payments + fees).
Native Stable Coin
A stable currency means peace of mind. Predictable currencies allow buyers and sellers to exchange value without the risk of volatility. During the implementation of xDai Stable Chain, transactions are executed using xDai, a stable coin with a value ratio of 1: 1 to Dai. Because transactions happen on a bridged sidechain, they are extremely fast and inexpensive. In addition, transactions and fees are paid for with a single coin.
The xDai chain provides an important public utility for users – the ability to transfer value steadily without fear of speculation, volatility, or FUD (fear, uncertainty, and doubt). xDai is a standalone network, built to support value hold transactions. When DAI is bridged with xDai, it moves to a platform with a clear, transparent purpose; secure and stable transactions on a neutral, fast network.
The value of xDai is not determined by crypto market forces, eliminating much of the drama that permeates the blockchain space. Open governance, open access, and the stability of the token create a trusted environment for users as well as applications built on xDai.
Using RANDAO-based Random Number Generator, xDai-based validator generates random numbers used to select validators. These random seeds are also available for use by the contracts deployed for xDai. This allows for true on-chain randomness, eliminating the need to rely on a centralized service or third-party application. More information on how the xDai RNG works are available here.
To move to the disallowed structure, the xDai Stable Chain will adopt the delegated Proof of Stake (DPOS) consensus mechanism. Private POS consensus is in place, and Phase 2 will put public betting on the xDai chain. The POSDAO white paper describes all aspects of this new consensus protocol, known as POSDAO consensus, including a full theoretical overview, rationale, security, and detailed implementation.
Multi-Chain Staking Token
STAKE tokens will be used by an authenticator and an attorney to secure the xDai chain. Users will have the opportunity to participate in the chain consensus, either validator running the xDai nodes, or an authorizer placing stakes in those nodes. While the participants will set STAKE to secure the chain, they will receive rewards at both STAKE and xDai thanks to the unique reward mechanism.
Additional sidechains will also have a chance to use STAKE to secure their chain, making this the first multi-chain triggered betting token.
Bridges to Ethereum
Two bridges connect the xDai Stable Chain with Ethereum’s main network, supporting seamless two-way asset transfers between chains. Tokens are purchased on the main net, which is then bridged with the xDai Stable Chain sub-chain using either the Dai-xDai bridge for trading tokens or the DPOS bridge to place tokens. Once a user completes a transaction or bet, the token can be easily bridged back to the main net.
Stability, speed, security, and scalability open the door to many exciting applications and new use cases.
Fast and effective stable payments can be made with xDai. With xDai, sending money to a friend, relative, or supplier is fast, cheap, and easy. It is also stable since the value of xDai closely follows the US dollar. Blockchain-based peer-to-peer (P2P) payments can replace the very costly, slow-moving bank-driven processes that dominate today’s online payment systems. It happened – the case studies below highlight the xDai P2P in action.
To provide blockchain solutions to enable local exchanges and commerce.
Community Integration Currency (CIC) is the local currency used to pay for goods and services. The CIC is not intended to replace a national currency; they are complementary currencies designed to support local trade. CIC provides a means for daily spending and transactions while also allowing individuals to save national currencies (which may be volatile or scarce) for interactions with larger businesses and government institutions outside of the immediate community.
A platform for Prediction Markets
A platform for Blockchain Games
Better predictable user experience, micropayments, and cross-chain interactions can be achieved in a stable ecosystem.
Instant participation is available to players through pre-created accounts financed with a small amount of xDai, providing the opportunity to showcase and play blockchain games among crypto novices as well as crypto enthusiasts.
Because many micro-transactions are happening simultaneously on a decentralized pool of players, it is important to use a chain with low cost, predictability, and high speed. The xDai series is naturally suited for multiplayer gaming environments.
Voting and on-chain governance for Decentralized Autonomous Organizations
The xDai chain, with the consensus of POSDAO, is a type of DAO. Validators are a distributed group of autonomous individuals who provide STAKE and receive participation-based benefits.
Projects are also using the xDai Chain to run DAO governance mechanisms like recommendation and voting systems, crowdfunding, etc.
Cryptocurrency for Events & Conferences
Easy to recommend, use and reward event participants
xDai has proven itself to be a suitable solution for real-world crypto-based transactions and interactions at live events. These include informal gatherings like the Cypherpunk Speakeasies pioneered by Austin Griffith, to the recent Splunk19 Conference, which held more than 25,000 wallets.
Igor Barinov is the leader of operations and technology and has been involved in Ethereum-based projects for quite a while – he is the original founder of the POA Network. With the POA Network, he created an Ethereum sidechain with a Proof-of-Autonomy consensus, in which all validators are US notaries. The current network is largely autonomous when the validator runs the chain.
Additional xDai project team leaders include Vadim Arasev (POSDAO team leader), Victor Barinov (BlockScout + Nifty Wallet integration) Alex Kolotov (TokenBridge), Max Alekseenko (decentralized application development) & Andrew Gross (person technical writing). Their experience spans not only the development of blockchain but also offers a unique perspective from fields such as telecommunications, robotics, e-commerce, informatics, genetics, and research.
In the short term, they focus on building a public betting interface for POSDAO. This will allow anyone to bet on the xDai chain. Long-term plans involve features and updates for their infrastructure assets such as TokenBridge & BlockScout, as well as establishing a DApp development fund and ultimately implementing HoneyBadger BFT into the protocol.
You can check the STAKE price here.