XDAIPrice

(XDAI)

XDAI is a stablecoin operating on the Gnosis Chain, pegged 1:1 to the US Dollar. It is derived from the DAI stablecoin on the Ethereum blockchain. XDAI serves as the native currency on the Gnosis Chain, primarily used for transaction fees and executing smart contracts, ensuring predictable and low-cost transactions within the ecosystem.

Gnosis Chain is an Ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain that uses a Proof-of-Stake (PoS) consensus mechanism. Launched in October 2018 as the world's first stable dollar blockchain, it provides a platform for fast, low-cost transactions with fixed fees. It functions as a sidechain or Layer 2 solution for Ethereum, addressing scalability. It employs a dual-token model: XDAI for transaction payments and gas fees, and GNO for securing the consensus layer.

XDAI operates on the Gnosis Chain, functioning as an Ethereum sidechain. Users typically obtain XDAI by transferring DAI from the Ethereum mainnet to the Gnosis Chain via a bridge. This process involves locking DAI on Ethereum, after which an equivalent amount of XDAI is minted on the Gnosis Chain and sent to the user. This mechanism ensures XDAI's stability, supporting extremely low and predictable transaction fees and fast processing times.

No, XDAI and DAI are distinct, though both are stablecoins pegged to the US Dollar. XDAI is a derivative of DAI, operating on the Gnosis Chain as its native gas token. DAI is a decentralized stablecoin residing on the Ethereum mainnet. XDAI is specifically created by bridging DAI from Ethereum to the Gnosis Chain, making it the transactional currency of the Gnosis Chain ecosystem.

You cannot directly purchase XDAI like some other cryptocurrencies. The primary method is to bridge DAI from the Ethereum mainnet to the Gnosis Chain using the Gnosis Bridge. Some platforms and gateways may also allow acquiring XDAI by converting other cryptocurrencies or fiat. Additionally, new users can utilize Gnosis mainnet faucets to cover initial transaction fees, facilitating their entry into the ecosystem.

The Gnosis Chain and XDAI offer several key advantages. These include significantly low and predictable transaction fees, making it cost-efficient for decentralized applications and users. Transactions are processed rapidly, often within five seconds, enhancing user experience. XDAI's stable peg to the US Dollar provides price stability. The chain's EVM compatibility allows easy migration of dApps from Ethereum, and it effectively scales Ethereum by offloading transactions.