Dai Software Upgrades Through Smart Contracts Unlike Other Cryptocurrencies

  • Weiss Crypto Ratings has reported that MakerDAO has run an update on the coin without explicitly pushing code changes to the token.
  • Weiss calls Dai a “very exciting stablecoin” and “the blueprint for money in the future.” 

Weiss Crypto Ratings has reported that MakerDAO, the organization behind the Dai stablecoin, has run an update on the coin without explicitly pushing code changes to the token. This has been done by deploying a smart contract that runs the update process on the Dai network.

This is unlike other cryptocurrencies that rely on explicitly making changes to the base code of the blockchain network and then pushing it to all nodes. Only when consensus is achieved, the software upgrade is fully deployed. 

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This method of pushing software upgrades on the blockchain network using smart contracts can be a much more efficient solution to offering quick. Consistent updates and fixes to the system without having to go through the hassle of getting the update pushed to every node and then achieving acceptance. Weiss also calls Dai a “very exciting stablecoin” and “the blueprint for money in the future.” 

Dai is a stablecoin built using the Maker Dai Stablecoin System and is valued against the U.S. Dollar. The coin uses margin trading to maintain its value in the market and keep stability against the dollar.

It maintains strong stability in the market using various techniques like its parent organization, Maker’s token, MKR, using CDP smart tokens, and other innovative techniques to maintain stability.

The most popular stablecoin, Tether, is also pegged against the U.S. Dollar, but what sets it apart is that unlike Tether. Dai isn’t collateralized directly by the dollar but by several cryptocurrency collaterals that are publicly visible on the Ethereum Blockchain. 

Dai’s parent company, Maker, is on a goal to build a number of stabilized digital assets to replace traditional currencies and mineral stores of value. The maker has two tokens, the native MKR token, and DAI, backed by the U.S. Dollar. The entire organization is a Decentralised Autonomous Organisation (DAO) and is built on the Ethereum blockchain with both it’s tokens circulated as ERC-20 tokens.

When competing with other large players in the market like Tether and TrustToken, who also plan to build digital assets that replace traditional investment instruments, features like Dai’s smart contract update system can set it apart from the rest. 

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Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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