At the end of 2017, the developers of the Maker Network presented their version of the analogue of the Tether platform, where you can use the cryptocurrency on the Ethereum block chain to work with smart contracts. The Maker shell offers to take advantage of all the advantages of a decentralized platform for payments, savings and investments in cryptocurrency.
The Maker infrastructure uses a dual payment system consisting of Makercoin (MKR) and Dai coins. Most often, Dai tokens are compared to Tether, because both these coins are pegged to the dollar and are nothing more than collateral assets. At the same time, Dai, unlike Tether, is supported by anonymous smart- contracts based on Ethereum.
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At its core, Tether can not be defined as a 100% decentralized network, because Tether Limited manages the project. In turn, the Dai cryptocurrency can be eliminated only by individual users. Using Dai allows you to mitigate the volatility of fiat money, thereby weakening the risks associated with sharp fluctuations in the value of the cryptocurrency. Another positive point in the work of Dai is the elimination of intermediaries in making payments. Also in the work on the platform, large corporations are interested, who want to lower the level of corruption and simplify the work of accounting.
Makercoin tokens perform three main roles in the Maker Network: it is the MKR utility icon, the function of managing voting and filing various kinds of petitions, and also as a resource for investments and paying off the deficit. To start working on the network, the user needs to create a collateral debt known as CDP. Using the Ethereum smart- contracts on the Maker platform, network participants provide their debt positions.
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The interaction of users with the CDP takes place in four stages. Everything begins with the creation of a debt position, then the user needs to make a transaction and get the requested number of Dai coins. The next step is to reconcile the debts and receive the collateral back to the user account. Outstanding debt is compensated exclusively in Dai, at the same time, payment for debt obligations is possible only in MKR.
In the Maker there is a Stakercoin system, which, analyzing external factors and economic risks, binds Dai to the dollar rate. The balance between market and target price is retained for the possibility of determining the value of collateral assets.
To save Makercoin and Dai, the ERC-20 standard is used, so it's best to store these tokens in the MyEtherWallet purse.
In the plans of the creators of the Maker network, the extension of the types of debt collateral that should be used to issue the Dai cryptocurrency. The development of the platform is associated with the launch of new applications using Blockchain technology. After a slight decline at the beginning of the year, the inflow of investments into the Maker is about five hundred million dollars.
Editor: Yuliya Soroka