What is Maker Platform?
Widely seen as a substitute to Tether, Maker is a feasible stable coin. Maker is a smart contract platform that controls and sells Dai. Buy Maker (MKR) India. It is a decentralised trustless platform. The platform of Maker balances the value of Dai to one USD deploying external market mechanism and economic incentives.
It eliminates the necessity to trust a centralized organization and the inconvenience of third-party audits. Maker offers a transparent stablecoin system that is fully open to inspection on the Ethereum blockchain.
Coins of Maker:
The Maker Platform has two coins: Makercoin (MKR) and Dai (DAI).
Makercoin — Used to govern the Maker platform, it is, however, a token with a volatile price.
Dai — A price stable coin that is suitable for payments, savings, or collateral
Comparing Dai with Tether
- Price — Both are soft-pegged to the price of one U.S. dollar
- Asset Type — Both are collateral-backed assets
- Mineability — Both coins are non-mineable
- Collateral Asset — Tether is backed by fiat U.S. dollars in audited bank reserves while Dai is backed by overcollateralized Ethereum smart contracts.
- Price Stabilization — Tether’s price is derived entirely from a holder’s ability to exchange one Tether for one U.S. dollar. Also, external market factors keep Dai’s price stable at one U.S. dollar. These market factors include collateralized debt positions (CDPs), autonomous feedback mechanisms and external economic incentives.
- Blockchain — Tether is issued on the Bitcoin blockchain via the Omni Layer protocol while Dai is issued on the Ethereum blockchain.
- Decentralization — Tether is essentially centralized as it can only be created or destroyed by Tether Limited. On the other hand, Dai is more decentralized because individual users can create and destroy Dai.
The Need of Stablecoins:
Due to their immense volatility, normal cryptocurrencies are not ideal for any form of direct payment or use as collateral. Stablecoins minimize the market risk of mercurial crypto-assets so that the market does not fluctuate massively.
Dai is pegged to the US dollar, meaning that 1 DAI = US$1. Smart contracts which adapt and responds to market dynamics maintains the currency autonomously. This, in turn, guarantees that the currency remains pegged to the USD and provides traders with stability regardless of the state of the market. The Dai coins are stable and linked to the USD. On the other hand, the MKR token is free to move in price and increases in value in line with an increase in use.
Maker covers four broad markets that could benefit from the use of Dai — gambling markets, financial markets, international trade, and transparent accounting systems.
It also allows users to generate their own coins via an autonomous system of smart contracts. some valuable asset held in the secure Maker smart contract platform backs each Dai. And anyone can lock their tokens up as collateral and issue Dai against them.
Buy Maker (MKR) in India
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