One of the main criticisms that are made to the cryptocurrencies is the volatility in its price. What it does not allow the investors and holders, carry out adequate planning based on its value. By it come the stablecoins, virtual currencies backed by assets of different kinds to maintain their value in time. As it is our currency of today: Maker Dai.
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Basic Data
Name: Maker Dai
Abbreviations: DAI
Year of release: 2017
Circulating volume: 85.509.460 DAI
Price today: $ 1,
Market capitalization: 86.400.037 dollars (52avo post)
Source: Stability virtual
The cryptocurrencies offer several obvious advantages over the fiat money traditional. Starting with the decentralization in its platform, which prevents any entity centralized control of the currency. Thus avoiding artificial inflation product of manipulations of financial. In addition, the Blockchain from a great amount of cryptocurrencies, are also the basis for the creation of contracts intelligent or smart contracts. So not only would serve as a means for the exchange of goods and services. But as fundamental tools of the new economy in construction. However, despite these important advantages, the cryptocurrencies there is a big problem. This is that the price of the same is extremely volatile at the time. Therefore, planning based on the use of a criptomoneda becomes a complicated task. Thus are born the stablecoins as Maker Dai, as a solution to exploit the advantages of virtual currencies without the volatility in its value. These currencies are backed by assets which make its price to remain constant in time. In the case of Maker Dai, the active ingredient that supports your value is the u.s. dollar. Counting with, according to MakerDao the organization behind the currency, a reserve of dollars large enough to guarantee the stability of the equivalence 1:1 with respect to the dollar.
The function of the DAI
As all the stablecoin, the main function of RTI is to provide a means for savings and the realization of commercial operations. With a virtual currency, and therefore, more flexible than fiat money. But the value of which is backed up by a financial asset as traditional as the dollar. In addition to this, DAI offers other functionalities. And is that Maker Dai seeks to be a means to finance businesses all over the world. To be a virtual currency and therefore easier to trade internationally than fiat money. Therefore, Maker Dai tries to sell itself as a perfect coin for the making of loans on any place on the planet. Protected these, in addition, by a smart contract within the same platform.
What have you achieved until now?
Without a doubt, the main achievement of Maker Dai is the recognition within the crypto community. Because even though this coin is relatively young, DAI is considered to be a stablecoin to take into account. Especially for its ability to combine smart contracts with a stablecoin. What he gets, thanks to the token, MKR. MKR is the token created for the governance of the system Maker Dai. Therefore, unlike other stablecoin centralized, as Tether. In Maker Dai bet by the decentralization of its platform. Therefore, the decisions to maintain the value and operations of DAI are not taken by any central institution. But, they are the product of a mixture between governance of the users owners of MKR. And smart contracts inside of which are instructions to maintain the value of DAI. And that are embedded within the chain of MKR.
Challenges
As you can imagine, anyone who has been following our reviews of cryptocurrencies. Maker Dai occupies a very small place within the crypto world. Ranking by its market capitalization at number 52 in the ranking of cryptocurrencies. Thus, given the curious situation in which the token of the governance of DAI, the MKR, ends up having a value and a market capitalization higher than that of Maker Dai. Rankeando much higher than DAI (in the top 25), this being a reflection of the difficulty that you found this criptomoneda to increase its adoption. And is that, although this coin is relatively young, it is certain that Maker Dai is facing big challenges. Starting with the competition of the Tether, the main stablecoin of the crypto world. Whose widespread adoption puts you in a privileged place to cope with challenges such as DAI. Therefore, if Maker Dai want to position yourself between the first cryptocurrencies in the world. You will need to take advantage of benefits such as the integration between stablecoin and smart contracts for the making of loans to international.
Main Wallets
Maker Dai is built within the chain of blocks of Ethereum. Therefore, it features support for any digital wallet that supports the storage of tokens ERC-20, including Ledger, Trezor and MetaMask.
Conclusions
In the crypto world, we have a long list of unsolved problems. Among them are the scalability of our Blockchains, the lack of interoperability between them, and if, the volatility in the prices of cryptocurrencies. And while the first two problems are essentially of a technical nature. The problem of volatility has a lot to do with the financial maturity of the crypto market. Which is not shielded against manipulations speculative on the part of large owners of capital. Therefore, the stablecoin gain so much relevance. Therefore, they are a way to combine the best of fiat money with a lot of the best of virtual currencies. However, the method employed by Tether to your stablecoin centralized, it makes the phantom of the handle between the market of cryptocurrencies. Of there the importance of Maker Dai and MKR. Therefore, the creation of a system that combines a stablecoin with a decentralized administration. It is an incredible step forward, that, of out well, could become a revolution in the global financial market. The following two tabs change content below. Student of International Studies, interested in issues of economy and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and the cryptocurrencies in particular.