Globally, the DAI stablecoin has gained relevance due to its plethora of benefits and wide range of uses.
DAI is a borderless, composable, and highly decentralized digital currency that can be easily generated and purchased. The stablecoin, pegged to the U.S. dollar, has a vast range of use cases, including inflation protection and international remittance.
In a recent report, MakerDao revealed that almost a billion of the stablecoin has been generated thus far. MakerDao also shared some areas in which the use of the stablecoin has been successful, with the main areas for the stablecoin being inflation protection and savings, gaming, DeFi products and services, digital art, and e-commerce.
Inflation protection and savings
Due to the economic instability in many countries, most crypto enthusiasts decided to explore the use of the stablecoin. While some fiat currencies showed stability, they lacked easy accessibility. This made DAI become very sought after.
Unlike some national currencies, the stablecoin can easily be generated or purchased. DAI can be generated from different forms of crypto collateral or bought on various exchanges. Such currency can then be either held or transferred globally with ease.
No centralized issuer or administrator can claim ownership of DAI generated by individuals. Once users are able to hold DAI in a software wallet, they can enjoy independent control over their funds.
In the gaming world, many players are very familiar with digital currencies. The rise in non-fungible tokens (NFTs), which represent coveted collectibles and valuable items, has been ongoing as players can easily trade such items to other players. However, MakerDao notes that moving funds in and out of games can be slow, and that’s where DAI comes in.
DAI is a currency that can be quickly transferred to anyone in the world, making it ideal for the gaming world. Other factors in DAI’s favor is its stability and that no company can shut it down or devalue it due to its true decentralization. Popular games like Axie Infinity, Marble Cards, and Forgotten Artifacts have integrated the stablecoin into their platforms.
DeFi products and services
The stablecoin has been a major force in boosting DeFi. As a composable stablecoin, DAI can be easily used on any DeFi application that is on Ethereum. Over 400 dApps and services have integrated DAI.
Through dApps, anyone connected to the internet can access financial products and services. In the past, these products and services were only available via traditional means, such as banks.
The stablecoin is also used as a payment currency for digital art. Many digital artists have embraced non-fungible tokens (NFTs), which are unique limited-supply blockchain assets that artists can use to prove ownership and provenance of their works.
When digital art is auctioned, they can be traded and transferred by collectors on the secondary market. A new art movement called Async Art opened its first art auction for DAI recently. Other popular art platforms that have integrated DAI include Foundation, the Museum of Contemporary Digital Art, and OpenSea.
Since the early moments of eBay and Amazon, e-commerce has grown significantly over time. However, the lack of an efficient global payment process is still a major issue. Luckily, the emergence of cryptocurrency is changing this narrative.
In e-commerce platforms today, DAI provides special benefits for online merchants. For example, online merchants that accept DAI payments can easily do so, without having to worry over problems like currency volatility, payment processor fees, or chargebacks.
Due to the high demand for the stablecoin and its vast range of use cases, Maker Foundation CEO Rune Christensen made short videos to explain different aspects of DAI. Released earlier this month, these videos cover everything concerning the origin of DAI.
In the videos, Christensen shared his early crypto experiences, how he launched MakerDAO, the idea of decentralization, the main benefits of DAI, the DeFi ecosystem, and everything in between.
Recently, Maker rolled out some reasons for online merchants to adopt DAI as a preferred option for crypto payment. The decision by Maker to promote DAI was a result of a recent rise in online traders using cryptocurrencies as a means of payment.
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