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The eventual distributed money could be bitcoin-associated without being bitcoin itself. For example, DAI[1] is (AFAICT) a derivative of Ethereum, but pinned to
by ertian 6y ago
The eventual distributed money could be bitcoin-associated without being bitcoin itself. For example, DAI[1] is (AFAICT) a derivative of Ethereum, but pinned to USD. It relies on the underlying store of value that Ethereum represents, but isn't tied to the value.
[1] https://en.wikipedia.org/wiki/Dai_(cryptocurrency) https://en.wikipedia.org/wiki/Dai_(cryptocurrency)
- realdense 6y agoDAI isn't so much a derivative of Ethereum, rather it is a dApp (decentralised app) that runs on the Ethereum smart contract technology. ERC-20 tokens are the magic that enable second-layer "currencies" such as DAI and others to work on top of Ethereum. There are other tokens, even WBTC (Wrapped Bitcoin). DAI itself is backed by a basket of token-based assets such as WBTC, WETH, USDC, USDT etc. The Ethereum dApps are definitely a fun rabbit-hole to dive into, e.g. UniSwap, Synthetix and other DeFi applications. The main problem as I see it is the transaction costs are very high (I looked into using UniSwap but it was going to cost > $50 to transact what I wanted). However, in the next few years the Eth2 improvements will help scale the network and hopefully see transaction prices fall.