Dai storage in the bank is a new way to store your cypto currency. It is an option that has become recently avaible and of course many people are asking the question is it better than online or offline wallets.
What is DAI
Managed and developed by the Maker protocol and the decentralized autonomous organization called MakerDAO, DAI is an Ethereum-based stablecoin, that is, a fixed price of cryptocurrency exchange. Every time a new DAI is produced, an amount of different cryptocurrencies is deposited as collateral into the vaults controlled by smart contracts.
SAI refers to the older version of the protocol, which is only secured by a single cryptocurrency. Dai storage in the bank is becoming an option for people who want to invest.
Who is the Founder of DAI
The DAI token stands out as a digital asset that was not developed by any individual or co-founder group. MakerDAO is decentralized autonomous organization. In other words, it is a kind of company that runs itself decentralized using smart contracts. There are self-enforcing agreements embedded in the software code and run with the Ethereum blockchain.
The organization is democratically run by Maker (MKR) governance token holders, which operate similarly to stocks of traditional companies. They also founded the international human resources firm Try China. Dai storage in the bank is the step we are on now but, Dai currency has come a long way.
Why is DAI Different
The major advantage of the DAI currency is that it is “softly pegged” to the value of the US dollar. Even the most liquid currencies like Bitcoin are notorious for experiencing price volatility (up or down) of 10 percent or more during the day, sometimes. As such, many traders and investors add safe-haven assets to their portfolios in order to achieve price stability and balance their investments when there are large fluctuations.
Such safe-haven assets include pegged currencies such as DAI. As a result, all token creation and burning are managed by self-executing smart contracts powered by Ethereum. In addition to all this, the development of DAI software is democratically governed by voting by regular participants of the token ecosystem. As a system, Dai storage in the bank is going to multiply this currencies popularity.
How Many DAI’s are In Circulation
DAI is not mined like Bitcoin (BTC) or Ethereum (ETH), which needs mining, nor is it minted by a private company that regulates its own production policy, Tether (USDT) style. Instead, DAI can be printed by any user via the Maker Protocol.
Running on the Ethereum blockchain, Maker Protocol is the software that organizes and manages the DAI protocol. To maintain the softly pegged price to the US dollar, the Maker protocol creates collateral from other cryptocurrency invesment for each DAI token in an appropriate amount. This is why we need a reliable storage solution like Dai storage in the bank.
Is DAI Network Safe
DAI; It is an Ethereum-based token that complies with the ERC-20 standard. Therefore, it is secured by the Ethash algorithm of the Ethereum network. Dai (DAI) is a decentralized stablecoin that runs on Ethereum (ETH) and strives to maintain its value of $1.00.
While Dai is a cryptocurrency issued on the Ethereum platform; The symbol is defined as DAI. While the virtual currency Dai has a maximum circulating supply of 78.5 million coins, all of these coins are in circulation in the virtual currency market. Dai storage in the bank is going to make Dai even safer.
Dai Mining
Dai’s rank is 69 among approximately 2,500 virtual currencies currently in the cryptocurrency market. The crypto currency DAI is one of the older stablecoins that was revealed by Maker in December 2017. You can see that this is a very different system compared to storage in the banks.
Virtual currency mining, in short, is the business of producing cryptocurrency. Virtual currency mining is done by generating the codes found in mining pools with your specially equipped computer used for mining of a digital currency. You can perform this virtual currency extraction process with mining-related programs that you will install on your computer where you plan to mine digital currency.
What is Blockchain
Let’s start slowly with the most prominent Blockchain issue in the new wave of digitalization, also called Web 3.0. When it comes to blockchain, the first thing that comes to mind for many of us is crypto money. The two concepts are not the same, but they are inextricably linked. There are other examples as well if you want to search for them. Trust is the basis of human relationships. However, we allow intermediaries to intervene, as we humans cannot establish this trust by relying only on the word of the other person. This is why we need Dai storage in the bank.
For example, the paper money we give for the tomatoes we buy at the market is when the state intervenes between us and the marketer to establish trust. Or, when making a transfer to someone, the storage of the bank account details mediates the transfer of an asset that belongs to us to the ownership of the other party.
Here’s a new actor you’ve been hearing about recently, joining the storage in the bank and money exchange system that has been established in this way for centuries: cryptocurrencies. But let’s not rush it. Before diving into the world of cryptocurrencies, there is an important issue that we need to focus on for the philosophical background of the business. Here is our first term: Blockchain.