What is Xdai?
xDai Chain is an Ethereum sidechain with 5-second block times, low gas prices, and a native token that’s also called xDai. Developed through a partnership between POA Network and MakerDAO, xDai Chain is powered by a delegated Proof-of-Stake architecture called POSDAO.
With POSDAO, users who hold the STAKE governance token on the xDai chain can apply to become validators, and community members with less STAKE can also participate in the consensus process as delegators. STAKE token is used to protect the protocol and also for governance through a snapshot integration. The STAKE community can add and vote on proposals for protocol changes.
The xDai token is analogous to ETH on Ethereum. It’s a 1:1 representation of MakerDAO’s Dai stablecoin. Users can convert Dai to xDai via POA Network’s xDAI Bridge, which connects Ethereum and xDai Chain.
Established in October 2018, xDai Chain attracted the attention of the ecosystem, thanks in no small part to Austin Griffith’s Burner Wallet, which provides a quick and easy way to carry and exchange small amounts of spending-crypto using a mobile browser and serves as a low-friction way to onboard new users.
