Why buy DAI?
1) The idea behind Maker DAI is to create a rock solid, trust based stablecoin. The purpose of a stablecoin is to eliminate a crucial problem that cryptocurrencies tend to face – volatility.
2) There is however a crucial difference between DAI, which is built on the maker platform and other stablecoins. Basically, DAI’s value proposition is that it combines the stability of a stablecoin with the truthfulness of the decentralized Ethereum blockchain.
About DAI Network
1) DAI is an ERC20 token on the Ethereum blockchain, pegged to the US dollar, so that 1 DAI = 1 USD. Dai is the currency used for money lending on MakerDAO. When you take out a loan, Dai is created. When you pay it back, it’s destroyed. Dai can be backed by multiple collateral assets, including Ethereum and Basic Attention Token (BAT).
2) There are two fundamental differences between dai and other stablecoins such as Tether (USDT). First, dai is not backed by fiat reserves held in a bank like its other stablecoin counterparts. Second, dai’s transparency can be seen on the blockchain at all times, as opposed to needing an audit to verify its position.