xDai Chain AMA Recap
CryptoDiffer team
We are glad to meet here
Igor Barinov, Tech and Operation Lead
Andrew Gross, Technical Writer
Andrew Gross Technical Writer at xDai
Hello
Igor Barinov Tech and Operation Lead at XDai
Hi everyone!!
CryptoDiffer team
Let`s start with pre-selected questions from Twitter
Q1. There will be many hacker attacks – how can STAKE handle it and provide security to user data?
Igor Barinov Tech and Operation Lead at XDai
In the POSDAO whitepaper we discuss potential attack scenarios and how the consensus algorithm is designed to stop different types of attacks. Attacks specific to POSDAO:
– Random Number influence attacks – validators who skip revealing random numbers too many times or skip at the end of a staking epoch are banned and stakes frozen for 90 days
– Exit from Bridge Attacks – Bridge runs with trusted organizations, daily limits mitigate possible damage if nodes are somehow compromised.
– Coordinated Validator Set Attack – High staking requirements mean this type of attack would be very expensive for a conspiring group (67%) to attempt.
Checkout section 7 of the whitepaper for more details: https://www.xdaichain.com/for-validators/posdao-whitepaper
Also, check out security audits of POSDAO consensus and staking token https://www.xdaichain.com/for-developers/security-audits
CryptoDiffer team
Q2. Why xDai chain uses a different consensus model (POSDAO) than Ethereum ? What are the benefits of an EVM sidechain?
Andrew Gross Technical Writer at xDai
xDai is moving to a Proof-of-Stake model with POSDAO. Ethereum is also moving to Proof-of-Stake (POS), but when is the 2.0 transition…….? We are confident xDai will have public staking before Ethereum.
Right now, Ethereum is still a POW chain – meaning it consumes a lot of energy through the mining process, and transactions can be slow or costly depending on network congestion. Even when ETH 2.0 is live, ETH 1.0 will continue to provide a blockchain solution for many projects. xDai is completely compatible with ETH 1.0, and provides scalability and efficiency to an EVM-based network. We will also look into compatibility with ETH 2.0 when it arrives, like potential bridging to shards in the ETH 2.0 architecture.
As you said, xDai is an EVM sidechain. The benefits are we can use POSDAO to have fast, stable transactions with very low fees, along with the ability to implement delegated Proof of Stake for decentralized security. On a sidechain you can leverage Ethereum tools and capabilities while providing options for users. In this case, we provide a stable chain for transactions where only xDai is needed for both transactions and fees (gas) and a second coin, STAKE, is used to protect the network.
CryptoDiffer team
Q3. How will STAKE target and educate people who don’t know about blockchain and crypto?
Igor Barinov Tech and Operation Lead at XDai
We believe that using tools is the best way to learn. With the Burner Wallet, xDai has a UI that allows new users to try out crypto and learn how easy it can be to send, receive and exchange. Blockchain and crypto can be difficult at first – new users need to figure out how to buy tokens, setup wallets with seed phrases, figure out what gas is etc.
We believe that using tools is the best way to learn. With the Burner Wallet, xDai has a UI that allows new users to try out crypto and learn how easy it can be to send, receive and exchange. Blockchain and crypto can be difficult at first – new users need to figure out how to buy tokens, setup wallets with seed phrases, figure out what gas is etc.
CryptoDiffer team
Q4. The process is complicated because of congestion on the Ethereum network. the xDai bridge waits eight blocks on Ethereum before they pass on to Dai to xDai. My question … Has the xDai Team solved this problem?
Andrew Gross Technical Writer at xDai
This isn’t so much due to congestion on Ethereum but related to block finality on Ethereum. When we make a relay request with the bridge, we need to wait to make sure that transaction is included in the blockchain. Temporary branches can be created during Proof-of-Work consensus which are then dropped and not included on the chain……
….We wait for 8 blocks so we can be sure the transaction is accepted and included on the main chain. This does result in a wait time when moving funds across the bridge, but once they are on the xDai chain, they can be transferred very quickly. This security is necessary but does not impact transaction times on xDai (5 seconds), it only has impacts when bridging between the two networks.
CryptoDiffer team
Q5. As far as I know, xDai Chain implements a dual-token mechanism (xDai $STAKE), but it seems that the protocol incorporates two additional tokens: $Chai and $EXIT, what’s these tokens and why they are needed?
Igor Barinov Tech and Operation Lead at XDai
Yes, we are exploring additional reward mechanisms for validators and delegators. They aren’t needed to run the protocol, but provide some additional incentives and interest for the community.
Block rewards will be provided in STAKE, and validators will also receive xDai rewards from transactions (although these are quite small) and both validators and delegators will receive bridge fees.
We are incorporating Chai as a way to capture additional interest on the DAI locked in the bridge contract. Dai is converted to Chai which automatically accrues interest based on the Dai Savings Rate (DSR – which doesn’t amount to much currently, but may in the future). This extra interest is distributed to active stakers at the end of a staking epoch. These rewards will depend on the amount of Dai locked in the bridge + the DSR.
More information about Chai is available here: https://www.xdaichain.com/for-stakers/stake-reward-mechanics/xdai-rewards/chai-faqs
EXIT rewards are purely exploratory at this time, we don’t know if we will incorporate them or when they will be included. EXIT is a synthetic stable coin we are working on. It is overcollateralized by softETH, a token which is rebalanced regularly as a virtual ETH peg. For more information on this experimental token, check out https://www.xdaichain.com/for-stakers/stake-reward-mechanics/exit-reward-token
CryptoDiffer team
Cool! the next question:
Q6. The most obvious challenge that Defi struggles with is the need for orders of magnitude and more throughput on whatever blockchain, sidechain, or layer 2 solution that DeFi ultimately gets built upon. How do you plan to solve this?
Andrew Gross Technical Writer at xDai
Decentralized Finance is about more than one chain or solution. It’s a movement empowering people to take control and ownership of their finances. Stable coins are important to this – too much volatility and speculation can undermine value transfer. Liquidity is also key, and throughput as you mentioned. xDai is designed for stable payments, one of the cornerstones of the DeFi movement (others are lending, DEXs, derivatives)…….
… xDai chain infrastructure is designed to scale as needed to handle volume. The chain can scale in two directions. Vertical scaling means node validators optimizing & upgrading their nodes and applying protocol upgrades. Horizontal scaling means launching additional chains and connecting them with bridges, creating an entire network of chains working together.
CryptoDiffer team
Sounds cool!!! The next questions is:
Q7. What is so special about xDai compared to other projects? Can you give some reasons to convince users to choose xDai?
Igor Barinov Tech and Operation Lead at XDai
This is from our homepage – we encourage you to check it out!
Fast transaction times (5 seconds) & low transaction fees (500 tx for $.01).
Digital cash. A stable chain is ideal for real-world value exchange where 1 xDai = 1 US Dollar.
A single token for transactions & gas fees.
On-chain, decentralized Random Number Generator.
Permissionless delegated Proof-Of-Stake based consensus with public POSDAO (coming soon – currently transitioning from private to public POSDAO).
STAKE token allows community consensus participation and incentives.
Wide-ranging Community Support (see xDai Validator Organizations).
Extreme usability with tools like Burner Wallet & Burner Wallet 2.
Growing ecosystem designed to support stable person-to-person transactions, micro transactions, conference currencies, community currencies and more.
Smart Contract, DApp & toolset compatibility with other Ethereum-based chains like Ethereum, Ethereum Classic and others.
Experiencing the magic of crypto for the first time!
CryptoDiffer team
Q8. How has the recent COVID-19 has affected your project? How will you survive, let’s say if this COVID-19 lasts a year longer?
Andrew Gross Technical Writer at xDai
Our project is already distributed with the whole team working remotely, so the impacts have been minimal day-to-day. We have attended many conferences in the past, so that has been different (our last in-person event was EthParis where several participants later tested positive for COVID-19). Events are one way we teach others about xDai through things like the Burner Wallet. So we are looking at ways to continue presenting at conferences (we recently presented at NonCon) and ways to continue bringing xDai adoption to virtual events……
…..A few good things we’ve seen: Conferences are cheaper now, and open to everyone, so more people are coming in and learning about BlockChain, Ethereum, DeFi etc…
…Also, recent events show now more than ever that we need blockchains, cryptocurrency and stable, digital payments that can be sent globally in seconds. Through this crisis there is opportunity for new & better mechanisms to replace old ways of doing things that are broken.
CryptoDiffer team
the next questions:
Q9. How are validators and agents created and what role do they play in securing the chain? How to choose verifiers running xDai nodes and delegates and how to participate in chain reconciliation?
Igor Barinov Tech and Operation Lead at XDai
Validators first announce themselves as candidates by launching a node and placing a minimum 20K STAKE on their own address. This creates a candidate pool. Delegators can place STAKE into this pool to increase the amount, making the candidate more likely to be selected as a validator. Each week, a new validator set is chosen and contains up to 19 validators. These are chosen based on the size of the pool as well as a random number generated on-chain.
There are no agents on xDai.
CryptoDiffer team
And, the last question from Twitter:
Q10. Is the xDAI token deflationary? Is it planned to issue additional coins, or is the offer of 8.5 million final?
Andrew Gross Technical Writer at xDai
Assume you mean STAKE here…..xDai supply is based on the DAI supply, currently 100M+ circulating.
In addition to the 8,537,500 initial supply, STAKE rewards will be minted based on how much STAKE is placed on active validators in the xDai Chain public staking protocol. This amount is snapshot at the beginning of a staking epoch (which is one week) and rewards are minted based on that amount at 15% APR and distributed at the end of each epoch. So the emission rate depends on how much is staked into the protocol.
CryptoDiffer team
Ok, thanks for such detailed and interesting answers!
Let’s move to the Telegram community questions part.
Cryptodiffer Community
Can you please tell the investors that currently how many people working as a team , their backgrounds & credentials, and their achievements. And what companies are you partnered with or seeking to partner with in future
Andrew Gross Technical Writer at xDai
Hi, please checkout our team page to learn more about the team leads, we also have a roster of devs we work with depending on the scope of a project. https://www.xdaichain.com/media/xdai-dev-team
We work with a number of companies that are active on Ethereum, including Splunk, Gnosis, AnyBlock Analytics, theGraph and others. Because the tooling is 100% compatible, it’s easy to collaborate, and we have a lot of long standing relationships in the community
Cryptodiffer Community
Hello sir, …
Why does xDAI stablecoin choose Ethereum (that is, blockchain 2.0), and why not choose blockchain 3.0 (such as COSMOS), which is better than the Ethereum blockchain in terms of scalability, availability, and interoperability?
Also…
STAKE is described as a “multi-chain” mortgage token. What does “multi-chain” mean and what is its use?
Igor Barinov Tech and Operation Lead at XDai
1. we are Ethereum maxis and working in the space for a long time. All our products are Ethereum-first – consensuses for sidechains, BlockScout blockchain explorer, TokenBridge interoperability protocol. We appreciate achievements of other ecosystems and sharing ideas in and out. I really like myself TRON for smooth experience with TRON Link. Hope to see STAKE token on TRON
2. Multi chain staking token. We plan to enable STAKE for staking on multiple chains, at least on Ethereum and xDai in the near future.
Cryptodiffer Community
What is your long-term vision about the industry which XDAI is working at? Are you afraid some day there will be another project with more innovative technology can replace XDAI ?
Andrew Gross Technical Writer at xDai
Stable payments and DeFi are just starting to get going… We think there is plenty of room for many, many projects in this space each with their own niches and specialties. Innovation is welcome, and we believe in open-source and that each innovation is good for the entire ecosystem.
Cryptodiffer Community
1) You SAID 1 xDai = 1 USD. Have you checked exchanges? It’s doesn’t exist like that. You see 1 xDai = 0.998 USD or less. Why is this so? Is the purpose of stability not defeated already?
2) Why did you implement STAKE as ERC677 and not as ERC20, despite that ERC677 tokens are being attacked recently? What benefits will ERC677 bring?
Igor Barinov Tech and Operation Lead at XDai
> 1) You SAID 1 xDai = 1 USD. Have you checked exchanges? It’s doesn’t exist like that. You see 1 xDai = 0.998 USD or less. Why is this so? Is the purpose of stability not defeated already?
xDai is 1:1 to Chai and Chai is 1:1 to Dai and Dai is ~ 1:1 to Dollar. Thus, xDai is ~ 1:1 to Dollar.
> 2) Why did you implement STAKE as ERC677 and not as ERC20, despite that ERC677 tokens are being attacked recently? What benefits will ERC677 bring?
I think you reference to ERC777 attacks, ERC677 is quite secure. ERC677 has a transferAndCall feature which in convenient to use when applications interact with each other such as consensus and bridges
Cryptodiffer Community
How many people are using STAKE right now? What’s the volume processed through the platform?
Andrew Gross Technical Writer at xDai
Right now STAKE is available on BitMax and they have an innovative pre-staking platform where people can try out delegating STAKE. They provide stats on staking daily on the community channel. Here is a link to a page where we are collecting some of these. Public staking on the xDai chain is scheduled to start in August.
https://www.xdaichain.com/about-xdai/news-and-information/project-updates/pre-staking-program
Cryptodiffer Community
Obviously adoption is crucial to the success and momentum of xDai and STAKE. Any news in the pipeline short term that will be significant for adoption?
Igor Barinov Tech and Operation Lead at XDai
Transition from pre-staking to staking following our roadmap is significant for the TAKE token. We are working on the first multi-chain staking application for STAKE and plan to enable it on Ethereum after pre-staking.
For adoption of xDai we plan to work with developers benefiting from the stable nature of native token and predictable fees.
You can check out fees of Ethereum right now.. it’s really crazy prize to get on-chain at the moment (35 GWei per gas unit)
Cryptodiffer Community
What are the advantages of xDAI over DAI? Why i as user should chose xDai over DAI and other stablecoins?
What are the requirements to be a validator in xDAI platform?
Andrew Gross Technical Writer at xDai
With xDai its about the stable platform for payments. So it’s faster to use, very inexpensive, and all fees are stable and paid with xDai. It’s designed for payments, whereas Dai can be used for lending and other larger DeFi type applications. You can bridge to xDAi and use it for payments there, then bridge back for other stablecoin purposes.
To be a validator, you need to setup a node and put 20K stake into the platform. You will then have the opportunity to become a validator, based on how much additional STAKE you have relative to other candidates, as well as a random number generated on-chain to ensure fairness.
Cryptodiffer Community
As we know the need of Decentralized Currencies & Stable Currencies has increased in these times,
After the release of Dai Coin, Many other Dai Derivatives have been created, Isn’t it?
What’s the main reason that you consider xDai as original Derivative of Dai?
Igor Barinov Tech and Operation Lead at XDai
xDai was one of the first derivatives of Dai. Most other derivatives of Dai are working on Ethereum. xDai is an implementation of a concept introduced by a founder of Cosmos, Jae Kwon. The concept is known as “hard spoon”, when a token’s supply is moving from one chain to another not to fork or compete, but to extend and bring new features to the token. In the case of xDai, those new features are:
– wrapping in a native currency
– horizontal and vertical scalability
– interoperability
Cryptodiffer Community
Can you share littlebit about Xdai staking ecosystem?
Andrew Gross Technical Writer at xDai
We are currently running POSDAO with the select group of validators who have been validating the chain for some time. So now they are staking but there is no change in validator sets. When public staking starts, validators will be selected on a per-week basis. We will also have delegators, who can enter into the ecosystem with 1K of STAKE and start staking on candidates they like. This will act as a vote and increase that candidate’s chances of becoming a validator. There’s a lot more about staking, the staking UI, and the mechanics behind the protocol in our whitepaper and in this section of the website.
https://www.xdaichain.com/for-stakers/stake-and-staking
Cryptodiffer Community
While going through your Roadmap, I saw this as part of your Q2 2020 target “Synthetic Assets on xDai based on UMA protocol”.
Can you tell us about this UMA protocol? What does it mean and how is this going to contribute positively towards the growth and expansion of xDai?
Igor Barinov Tech and Operation Lead at XDai
Synthetic assets are important to build new financial derivatives. If you have a stable token like xDai and a news feed on a volatile assets plus a tool to wrap the token into a synthetic asset you can build many new derivatives. UMA platform is pioneering in a space of open instruments for such derivatives.
Cryptodiffer Community
As you said,xDAI is a stable coin but ,the xDAI’s price has a lot of fluntuations in these days,can you explain why?
Andrew Gross Technical Writer at xDai
Assume you mean STAKE, the underlying token that protects consensus. There are 2 coins, xDai remains stable (it mirrors Dai), and STAKE is volatile, subject to market forces. Checkout more on the dual token model and how they work together here…
https://www.xdaichain.com/about-xdai/news-and-information/dual-token-model
Cryptodiffer Community
Which target users does xDai aim to serve?
Will its technology be easy for participants to use but still ensure an open, transparent and equal way?
Andrew Gross Technical Writer at xDai
We target a couple of audiences. First of all developers, because the tech is easy for them to use if they are used to Ethereum, and there are a lot of interesting things you can do in a stable environment, like create DApps which process micro-transactions without incurring high costs. So developers in a way come first, because they create the DApps that bring in users. This is our second audience, newer users who are used to sending cash with things like Venmo, paypal etc and can seamlessly transition to using crypto with tools created on xDai. They are not used to things like “gas” or several tokens for transactions. So we abstract out some of those things to make things easy for new users.
Cryptodiffer Community
What are xDai’s solutions against centralization as many other so-called decentralized networks out there are managed by some whales and power pools and it is very easy to manipulated?
Igor Barinov Tech and Operation Lead at XDai
POSDAO consensus was designed with this problem in mind. To avoid centralization on power within consensus we designed and implemented equal distribution of reward between pools and competitive distribution of reward within pools. If one 🐳 will stake 10x more than all 18 validators of xDai, reward from his stake will be distributed equally between all 19 pools.
Cryptodiffer Community
What wallets will be available to use $STAKE? What goals do you want to achieve about $STAKE token by the end of 2020?
Andrew Gross Technical Writer at xDai
Most ethereum wallets can handle $STAKE now, just add it as a custom token. Wallets that support xDAi include Nifty Wallet, Alpha Wallet, Burner Wallets and others. Please checkout the wallets section of our website for more info. There will be additional wallet support for STAKE on xDAi as we get closer to public staking.
https://www.xdaichain.com/for-users/wallets
Cryptodiffer Community
With the bridge infrastructure, What are your plans on Being compatible with other EVM-based chains?
Andrew Gross Technical Writer at xDai
We already are, TokenBridge allows for asset transfers between any EVM-based chains. You can event make cross-chain method calls with the AMB (Arbitrary Message Bridge!). We continue to make feature improvements to the bridge, and recently received funding from the Ethereum Ecosystem Support Program to enhance the AMB. So bridges can connect different EVM-chains, for example there is a TokenBridge between Ethereum mainnet and Ethereum Classic where you can transfer ETC into WETC.
Cryptodiffer Community
Which the key points make you think that xDAi is a stable electronic peer to peer cash system?
Andrew Gross Technical Writer at xDai
1) Stable currency platform with a single transaction/fee token
2) UIs like Burner Wallet designed for new users
3) very fast, very inexpensive, can confirm a payment from user-vendor in 5 seconds.
Cryptodiffer Community
Q1: With the bridge infrastructure, What are your plans on being compatible with other EVM-based chains?
Q2: Why should we choose xDai over Dai?What is the difference between stablecoin xDAI and DAI? Can xDAI be exchanged for DAI?
Igor Barinov Tech and Operation Lead at XDai
Q1: Our bridging technology is used by many projects. E.g. there are bridges between other networks such as Ethereum, Classic, POA. The xDai chain is using two bridges, one to bridge Dai to xDai and another is more universal which can be used for any token type. STAKE token will be bridged by the latter one.
Q2: xDai is the token of choice if you use xDai chain or if xDai is a payment method of choice for an application you are interacting with
Cryptodiffer Community
What is the fate of the famous napkin, which is part of the origin of the project?
Igor Barinov Tech and Operation Lead at XDai
Like any other napkin it disappeared.. well, but the ideas from it are here.. we have the xDai stable chain as a live example of stable blockchain
Cryptodiffer Community
What are #xDai’s top priorities? And what steps will be taken in the future?
Andrew Gross Technical Writer at xDai
Public POSDAO is number 1, along with a user interface that will be really easy for delegators to move stake, claim stake, place it on different validators, see their rewards. All of these things will make staking really fun and transparent. We are also really invested in increasing DApp deployments and supporting devs who have interesting ideas for new DApps. We will have a large ecosystem fund to support this. For more roadmap items, check out the staking roadmap: https://www.xdaichain.com/about-xdai/roadmap.
And the general xDai roadmap: https://www.xdaichain.com/about-xdai/roadmap
We’ll continue adding to these as new priorities and ideas present themselves.
Cryptodiffer Community
How friendly and robust a dApp running on xDai in comparison to a dApp running on other networks? How can a developer start to build on xDai network?
Andrew Gross Technical Writer at xDai
Just as friendly and robust as a dApp running on Ethereum, but with opportunities to use stable payments and process transactions quickly and cheaply. We have a lot of docs on getting started, basically you just need to change RPC endpoints and you can deploy your dApp to xDai if it was developed for Ethereum or Ethereum testnets. You can use all the same tools like Truffle etc. Check out our developer docs, and we hope you deploy on xDai! Please let us know if you do and we will work with you to feature your DApp and get more exposure for it!
https://www.xdaichain.com/for-developers/developer-resources
Cryptodiffer Community
What are the notable funds supporting xDai?
Are there any traditional funds involved as well?
Currently there are many DEFI development projects, so what is the difference between xDai and those projects?
Igor Barinov Tech and Operation Lead at XDai
xDai seed round was supported by Bixin, NGC and B-Tech. https://finance.yahoo.com/news/xdai-payment-network-raises-500k-070000567.html
> Currently there are many DEFI development projects, so what is the difference between xDai and those projects?
DeFi space is huge and there so many teams and ideas floating around. xDai is in a niche of infrastructure for payments where we can find Connext, Lightning and some modern Optimistic Rollups chains. The difference of xDai is that it’s EVM compatible and connected via universal bridge to Ethereum. This bridge can bridge all existing an future (!) tokens.
Cryptodiffer Community
How to STAKE xDai?
Andrew Gross Technical Writer at xDai
You can prestake through Bitmax, public staking is not yet available on xDai. But we will release tutorials and plenty of info on staking when its ready (Q3 2020)
More info on Bitmax staking is here – it’s very easy as well. https://btmx.com/#/staking/details/STAKE-S
Cryptodiffer Community
Do you have a plan to listing STAKE in a major exchanges? Is there a big factor in the development of a STAKE project by listing their token on an exchange?
Igor Barinov Tech and Operation Lead at XDai
Yes, there are plans to help it getting listed on other exchanges and networks.
Liquidity and access to markets is very important to all projects in our space.
Cryptodiffer Community
This year, xDai team representatives attended ETHDenver 2020 as both participants & volunteers.
Can you tell me about main positives?
Andrew Gross Technical Writer at xDai
This year the Burner Wallet was expanded to include DAO voting and conference-based quests as well as food truck purchases. It was a map and interactive tool used for the whole conference. We have a long writeup on it on our site – check it out! https://www.xdaichain.com/about-xdai/news-and-information/ethdenver-2020-xdai-and-burner-wallet-recap
Cryptodiffer Community
How the #Transaction_prices will be unaffected by chain usage or market volatility?
Igor Barinov Tech and Operation Lead at XDai
tx price can be affected by usage of the network, e.g. if more people are using it some will pay more for gas and it will create a gas auction
although, the token price of xdai will stay the same and it’s one the main advantages of having stable native tokens
Cryptodiffer Community
IBurner wallet?
. Why is behind the name “burner”?
.. What is the benefits of using burner wallet?
Andrew Gross Technical Writer at xDai
The Burner wallet was originally created by Austin Griffith, it has since been expanded by other devs for more functionality. It’s called burner because the original intent is to use it for small amounts of spending cash. Once that is spent, you can “burn” the keys with a simple button click. Keys are kept in local storage, so it’s not a long term holding wallet, but something for quick payments or a night on the town. It has been expanded, though, and the Burner Wallet 2 can connect with remote resources for secure key storage. However, the original intent, and still the main usage, is for holding small amounts of digital cash for spending quickly, which can also be easily burned whenever needed.
Cryptodiffer Community
1) SEC recently frustrated telegram from launching their token, and they’ve promised similar regulations coming to stable coins soonest. How will xDAI survive government regulations?
2) Just now during the AMA, you said xDai can serve as “conference currency and community currency”. What do you mean by this? Any benefits to we users?
Igor Barinov Tech and Operation Lead at XDai
1) it’s important to follow and comply with the regulation especially SEC which is oversees the global market. We have legal opinions for xDai bridge and STAKE token that the bridge is not a money transmitter and STAKE is not a security token. The nature of the technology is following principles of decentralization and we hope that it will sustain changing in regulatory landscape.
2) Check our our case studies for Community Currencies https://www.xdaichain.com/about-xdai/use-cases/community-currencies and Cryptocurrencies for conferences https://www.xdaichain.com/about-xdai/use-cases/cryptocurrency-for-events-and-conferences
Cryptodiffer Community
Can you please explain about the solution of vertical & horizontal scalability?
What is the Importance of TokenBridge?
Andrew Gross Technical Writer at xDai
We’ve talked about this a bit – it’s about scaling by nodes as well as using bridges to scale the ecosystem. Here’s a related FAQ: https://www.xdaichain.com/about-xdai/faqs#how-does-the-xdai-chain-address-scalability-concerns-5-second-blocks-are-fast-but-many-chains-offer-even-faster-transactions
Cryptodiffer Community
1. Why did you choose pegging to collateral backed DAI, instead of fiat backed USDT for example? Is there a risk in the complete dependence of the system on the viability and unpredictable volatility of another crypto? And besides, arent the volumes of USDT more attractive, than DAI`s?
2. Can your bridges theoretically work with another stablecoin as a base? Will users be able to reverse convert xDAI into non-DAI in the future?
Igor Barinov Tech and Operation Lead at XDai
1) We discussed USDT but in October 2018 it wasn’t such popular on Ethereum as it is now and also it has some technical problems with rounding (USDT 6 decimals, Dai 18 and xDai 18 decimals). Also, Dai was much more used on conferences and we started to build with Dai as a collateral token.
2) xDai concept can be used to launch xUSDT or another stable token.
Also, we have a new bridge (AMB, Arbitrary Message Bridge) which can bridge any stable tokens between Etheruem and xDai
Cryptodiffer Community
What’s holding Defi back today and can these barriers be overcome?
Where do you see the future of Defi in 20 years from now?
Andrew Gross Technical Writer at xDai
DeFi is probably the #1 use case on Ethereum today and its not going anywhere. Biggest obstacles are UI and convincing regular users that it is safe. That will happen in time, and current events will make that timeline even shorter. Recent hacks have exposed some issues, but these are helping build more resilience into the system.
20 years from now? How about 5. I see mass adoption and usage by a global community by then, but that’s me. I thought we’d have flying cars by now too…mass blockchain adoption seems more realistic.
Cryptodiffer Community
Is your team the best? Do you have any blockchain engineers on the team or have plans to add additional?
Andrew Gross Technical Writer at xDai
Yes. More on the team leads here: https://www.xdaichain.com/media/xdai-dev-team
Cryptodiffer Community
Is STAKE competitor to MKR?
Igor Barinov Tech and Operation Lead at XDai
No, they have different purposes. STAKE is a multi-chain staking token with xDai consensus as a first chain and staking app. MKR is a governance token for Dai protocol.
In some sence they are competitors because all tokens on Coingecko are competing with each other.
Cryptodiffer Community
Is XDai have any Coin Burn / BuyBack system or any plans to pump your token ? The Xdai (Stake ) is now x6 for your first price what you feel about it ?
Igor Barinov Tech and Operation Lead at XDai
There is a multi-chain staking planned for STAKE which should increase adoption of STAKE token across networks.
Andrew Gross Technical Writer at xDai
Thanks guys! Enjoyed the questions and community enthusiasm!
Cryptodiffer TEAM
Thanks for amazing questions from the community and great answers
It was a pleasure to conduct an AMA with xDai!!!
Thanks for your time @igorpoa @andrew_144
Let’s finish the AMA
Igor Barinov Tech and Operation Lead at XDai
Thanks guys for the great questions!
