xdai ama with theblockcircle
AMA

xDai Full AMA Transcript

AMA (Ask Me Anything ) was conducted with xDai on 20 May 2020 at 3:00 PM UTC live on our telegram group .

About guests :

Igor Barinov

Hi Guys, I’m Igor Barinov the xDai chain founder and technical & operations lead. I’ve been involved in the Ethereum Ecosystem and sidechain development for a long time. xDai came out of work and research I’ve done with the POA Network. We have a strong R & D focus there,and have been building a robust open-source explorer called BlockScout, which is now the primary explorer for xDai, Ethereum Classic and many other EVM-based chains. We also built TokenBridge, which provides interoperability between different blockchains. These efforts have all come together to create the xDai Stable Chain. http://xdaichain.com/.

The team is made up of long-time blockchain developers. xDai project leads include Vadim Arasev (POSDAO team lead), Victor Barinov (BlockScout + Nifty Wallet integrations) Alex Kolotov (TokenBridge) & Max Alekseenko (Decentralized App development).Their experience spans not only blockchain development but each brings a unique perspective from fields such as telecommunications, robotics, ecommerce, informatics, genetics and research.

Andrew G :

Hi Everyone, I’m Andrew – I’m a technical writer for the xDai Chain. I work on creating instructions and other technical documentation for the project. As we roll out out our public staking UI, so I’ll be spending time making sure it is easy to use.

Twitter Questions :

Q. You say that xDai is perfect as a critical model for payments of daily life, so how many establishments accept payments with this mode and what kinds of assets can I get with it?

There are early adopters who accept cryptocurrencies for payments, but it is still a very small % of retailers and vendors. This is true for all crypto – most tokens have limited acceptance. This is due to a few reasons like:

1) Confusion around cryptocurrencies and how they work
2) High tx fees, slow payment acceptance
3) Volatility makes tokens difficult to use as a means of exchange
4) Poor user interface / experience
5) Local regulations……

The xDai chain addresses many of these issues. Payments are stable and fees are very small. Reducing fees over many transactions can save vendors a lot of money over time. With the Burner Wallet, the xDai chain has a UI that is very easy to use for both customers and vendors…..

Right now, some businesses such as food trucks vendors accept xDai as payment. They were first introduced to xDai chain at conferences and now accept it as a payment alternative. The user base is small, but use-cases are growing organically.

For an example of a user interacting with a food truck with the Burner Wallet and xDai Chain


Users are always amazed at how fast and easy it is…..

The Burner Wallet UI and xDai chain speed are impressive and easy to understand for users. Adoption will continue over time, but since xDai is stable, any goods and services and global peer-to-peer payments are easy, fast, stable and inexpensive to execute. Covid-19 may also play a part, world changing events might bring crypto adoption much faster.

Q. What’s the FireBurner Fire Wallet ? Why it’s attracting so much buzz? What’s special about this wallet? What’re the advantages of running it on top of the xDai Chain?

Officially it’s called the Burner Wallet, but FireBurner Fire Wallet sounds cool too. It is attracting buzz because it is so easy to use. You don’t need to remember a seed phrase, or even a password, you don’t need to connect to exchanges etc. With the link send feature, you can even open a link and have an instant web wallet which contains xDai or other tokens immediately ready for use.

What makes it simple also makes it less secure than a typical crypto wallet. Keys are saved in local storage, so they are not secured in the normal fashion. This means a Burner Wallet is similar to a cash wallet – a place to store small amounts of digital cash you are planning to spend or use quickly. Once you are done using a wallet, you can transfer funds out to a more secure wallet and “Burn” the keys. This is where Burner gets its name. It has an easy self destruct mechanism when you are done using it.

Burner Wallet 2 is the next iteration of the Burner Wallet. It includes the ability to store keys more securely, as well as plugins for additional functionality. There is also Burner Factory, which lets users set-up their own burner wallet events complete with an event token. No programming necessary.

If you want to create a burner wallet right now, just go to https://xdai.org/. A new wallet will open for you right away! You can connect it through metamask to use with your own web3 wallet, or use as a standalone wallet. It’s optimized for mobile usage.

If you want to learn more about creating wallet and event tokens check out Burner Factory: https://burnerfactory.com/

Q. xDai is being a stable coin what’s the security collateral is being used by the team to keep it pegged while market is in a negative state?

xDai is pegged 1:1 with Dai, so the same mechanisms that keep Dai stable (CDP, MKR governance) are behind xDai stability. xDai is created from Dai. Dai is locked in a bridge contract, and xDai is minted on the xDai chain…

On the xDai Chain xDai can be sent and received very quickly, used to back other community tokens, and xDai is used to pay for transactions. When a user is finished using xDai, they can bridge it back to Dai. The xDai is burned, and Dai is unlocked from the original contract….

As a bonus to validators, Dai is converted to Chai while it is locked in the bridge contract. This results in extra earned interest, which is distributed to validators along with other rewards they receive for securing the chain. Chai is converted back to Dai as needed when a request is sent to the bridge.

Q. The project tells us that the acquisition and sale of data between participants is protected by code of conduct “and how safe is deployed on the blockchain, but how do you handle regulations while operating on a global sca?

First we ensure our contracts are sound through both internal and external security audits. We also seek out legal opinions and documentation when necessary to ensure compliance laws and regulations. https://www.xdaichain.com/for-developers/security-audits

We believe in data anonymity and privacy, and support development of ZK (zero knowledge) based applications in our grants program: https://www.xdaichain.com/for-developers/grants/zk-zero-knowledge-privacy-fund

As with other crypto-projects, we cannot provide global regulatory guarantees, as laws differ in many areas of the world. Ultimately crypto is about personal responsibility, and it is always the user’s responsibility to be informed and know the laws they are operating under.

Q. What is PonyPurse and what requirements must users meet to participate in this tool?

Thanks for reading up on one of our use-cases. PonyPurse was a Burner-style wallet used at the Splunk technology conference. It was used by over 10,000 participants, many who had never used crypto before at all….

The PonyPurse held a token called ButtercupBucks, which users collected throughout the conference. They could earn them by completing tasks like visiting a certain booth or attending a talk. QR codes were scanned with the wallet to earn these tokens. At the conference store, users could buy swag like t-shirts with the ButtercupBucks they earned….

So this is an example of an event wallet. The wallet and the token (ButterCupBucks, an ERC-20 equivalent as well as non-fungible ERC-721s ) were created for the event and are no longer available. However, you can read more about it below, and maybe create something similar for your next event (once people are gathering together again!) with the tech available on the xDai stablechain.

https://blog.infura.io/infura-brings-scale-to-splunk-xdai-pop-up-cryptocurrency-ab53eda62320/

Live Questions :

Q. To attract new userbase or investors towards the project, various methods are needed, for example Marketing/ Mass Adoption.
What is your Marketing strategy & Mass Adoption plans to attracting more new users or investor towards #xDai Project?

We plan to work on xDai’s use cases such as peer-to-peer payments, community currencies, platform for applications, blockchain games and as a cryptocurrency for events and conferences. You can read more about it here https://www.xdaichain.com/about-xdai/use-cases

For adoption of STAKE token we plan to approach multi-chain staking. xDai was the first chain where STAKE can be used for staking. We are working on extending staking token to other chains for scalability and unique usecases.

Q. What strategies will the xdaichain team use to increase adoption?

We believe adoption comes from direct user experience, so we are working on tools that are very easy to use even for crypto newbies. We are also spreading the word through AMAs and other channels. We will also be funding DApp development to bring in the tools that make will make xDai a next-generation type platform for stable payments.

Q. No one can achieve anything valuable on its own, please tell us about your current and future partnerships that will lead you to success in this highly cramped crypto space?

We believe in collaborations and work with others in the Ethereum Community to achieve our vision. These include projects like AnyBlock Analytics, Tenderly, and theGraph who have developed tools for the xDai ecosystem. Also, if you look at our validators list, you will see an amazing group of projects that are intested in xDai’s success. https://www.xdaichain.com/about-xdai/news-and-information/current-xdai-validators

Q. How does the platform manage to keep such low fees and yet fast transactions? Which other advantages could we as users see in xDai ?

How is xDai backed to be stable at 1$? Where is the amount of $ equivalent to xDai supply?

We are pioneering sidechains for scalability and usability since 2017. xDai is not only horizontally and vertically scalable but it comes with predictable costs of operations for developers. If you look into SaaS and IaaS services for hosting like AWS they all operate in stable price per operation. We believe that for mass adoption we need the have the same approach.

Dai is programmatically pegged 1:1 to xDai and Dai price ~ 1 USD is defined by an open market and game theory mechanics.

Q. What are another big MILESTONES you have planned for 2020 roadmap and how are they supposed to benefit your costumers?
Will it be an exciting year?

Our big milestone is of course public staking, scheduled to start in August. This will be an open platform for delegators and the opportunity for anyone with enough STAKE and the ability to run a node to become a validator. Once that begins, we’ll be expanding the xDai ecosystem to include more devs and DApps based on stable transactions and payments. For more on our Roadmaps:

xDai Roadmap: https://www.xdaichain.com/about-xdai/roadmap

Staking Roadmap: https://www.xdaichain.com/for-stakers/stake-and-staking

Q. Can you elaborate on the experience of the development team who developed #xDai?

Hi Tony. I invite you to checkout our site and more on the history and team behind xDAi here: https://www.xdaichain.com/media/xdai-dev-team

The best way to see what are devs have done and are working on now is to checkout their githubs. We work in open-source, and believe in transparency and shipping code.

Q. Checking CMC and other exchanges, you’d see 1xDai is not equal to $1 as promised by you. You’d see 1 xDai = $0.998 or less. Why is this so? Can this truly be called a stable coin pegged to USD? Why can’t the value be exact as promised?

xDai is ~ 1 USD. MakerDAO protocol provides face value for Dai but not stability vs other pairs. Nothing stopping one from buy or sell for more or less than face value of the token. Although, the game mechanics of Dai’s protocol is designed a way that the price is stable around 1 USD.

Q. Can you please explain about the solution of vertical & horizontal scalability? What is the Importance of TokenBridge?

When one picture worth ten thousand words

Q. In the bad situation of the Covid-19 epidemic, every industry was heavily affected.
Does it affect on the growth of xDai Team and its ??
What are your plans to turn challenges into opportunities for #XDai development?

Yes, it is impacting everyone and we hope that people are healthy and safe in this community. It hasn’t impacted our day-to-day work. BlockChain may be one industry that can come out of this pandemic stronger. It is so useful for so many industries and can be done in a socially distanced way with decentralization. Big changes like this open doors for something like blockchain and cryptocurrency to fill the voids left by other failing institutions.

Q. In a previous AMA you explained that the most difficult part of the STAKE project is the POSDAO consensus, can you throw more light on this statement .How do I transfer and use any ERC20 token on a sidechain? .

Consensus algorithm is one of the most critical parts of any public blockchain. Our new consensus POSDAO is designed from scratch and includes complex features such as on-chain randomness or swappable consensus. Also, it’s most complex codebase of our smart contracts

How do I transfer and use any ERC20 token on a sidechain? .

You can use a universal bridge, Arbitrary Message Bridge, developed by our team. It supports any existing and future token types .

Q. xDai just partnered with Biconomy through an integration into their tech. What’s the relevance of this partnership? How can it be helpful to the xDai and STAKE ecosystem generally?

Its a great tool for developers. When they integrate their DApps with Biconomy, they can enable gasless transactions for users. This gets rid of one of the difficulties for new users when trying to interact with a DApp. Look for a DApp coming soon which will demonstrate the cool features of Biconomy. For more on the integration, see https://medium.com/biconomy/biconomy-supports-xdai-chain-4d21d1f70222

Q. Have you considered getting exchanges to become Validators or Delegates, have them mint their xDAI and return it to their exchange for use, etc?

POSDAO is a consensus with open participation. It’s possible that exchanges will be validators but not required. As a thought experiment, I can imagine a sidechain with POSDAO and STAKE token without delegation which will secure production of STAKE tokens for centralized exchanges. It’s totally fit in our model and benefit xDai.

have them mint their xDAI

that makes sense if they plan to list xDai as a stable token. I can imagine xDai/STAKE trade pair in addition to USDT/STAKE.

Q. xDai STAKE has amazing use cases ranging from Peer to Peer payments, Community Currencies, Platform for Prediction Markets, Platform for Blockchain Games as well as Cryptocurrency for Events & Conferences.

Does Xdai STAKE has any plan of introducing More use cases in the future or it feels the existing use cases would suffice inspite the competitive nature of the market?

We are open to other use-cases, and the nature of the chain means more will be coming. Devs can easily port over contracts from Ethereum, so theoretically anything deployed there can also be deployed on the xDai chain and use the stable platform for their Dapps. There are no limits, and we will see some cool new use-cases coming. For the use cases you mentioned, others can learn more about them here: https://www.xdaichain.com/about-xdai/use-cases

Q. What are Community inclusion currencies (CICs) ? are they meant to replace national currency or why were they created?

What contribution do they make to the community and how exactly does blockchain technology support them?

CICs are an awesome usecase deployed on the xDai chain. Grassroots Economics is behind this effort. CICs are used as local currencies in areas where the national currency is hard to get. This is happening in more and more places, so these local currencies are used for local trading on the blockchain using mobile phones. Then these local currencies can be converted to national currencies when needed. Blockchain provides transparency, tracking, and also a means for distribution (these currencies are sometimes sent as relief funds). This means donations can be tracked exactly, and the donators can know how their funds are being used. For more on this project, see here: https://www.xdaichain.com/about-xdai/use-cases/community-currencies

Q. How does xDAI STAKE provide a more sustainable solution than others with fast transaction times (5 seconds) and low transaction fees (500 tx for $ .01)? And, how green is the company in terms of environmental footprint?

Idea of scalability via sidechains is working for quite a long time and there are many out there. We are working not only on fast and inexpensive stack but also on tooling to make it usable for developers such us open source block explorer and interoperability protocol.

Read more on energy efficiency (a bit outdated but still) of our sidechains
https://forum.poa.network/t/energy-efficiency-of-poa-network/3109/2?u=igorbarinov

Q. On your website, I saw CHAI, xDai, STAKE, EXIT tokens? Why so many tokens? What’s the functions?

CHAI is wrapped Dai acquiring interest for validators and delegators of xDai
xDai is bridged Dai in a form of native token on xDai Chain
STAKE is multi-chain staking token used to secure consensus on xDai and other networks in the future
EXIT is experimental stable token with zero collateral

Q. You will agree with me that ADOPTION and UTILITY is very key to project survival and success, what’s being done to drive global adoption of XDAI amidst crypto regulations,and competition?

What’s the Leading utility and real life use case and application of xdai

Agree – we see this as an organic process. Create a chain with stable transactions that is easy for developers to use, tools are created for users, users use the chain. We’ve seen adoption happen this way through conferences and events. People get an easy introduction to xDai through the Burner Wallet, and they see that it can be used for everyday payments. They tell their friends etc…. just like how videos go viral, we are building up that same momentum with xDai. The leading utility is payments, typically smaller payments for goods and services. We may see DEXs move to xDai or other types of infrastructure etc., but everyday payments is what xDai excels with atm.

Q. Can your bridges theoretically work with another stablecoin as a base?

Our bridges working for several cross-chain projects such as xDai , POA, Classic, ThunderCore, Fuse to name a few

One of the exciting bridges we saw recently is a bridge for Thundercore for bridging ERC20<>ERC20 between Thundercore and Ethereum. It holds enormous 947k USDT (https://etherscan.io/address/0x2e8a97c62cc644adcd108b9bebcb9b32c9c58a1c)👌

Q. Checking CMC and other exchanges, you’d see 1xDai is not equal to $1 as promised by you. You’d see 1 xDai = $0.998 or less. Why is this so? Can this truly be called a stable coin pegged to USD? Why can’t the value be exact as promised?

Well the xDai price will mirror the Dai price, as it is minted from locked Dai. Dai fluctuates around $1 but is not exactly $1. To learn more about how Dai works, see the MAKER site..https://makerdao.com/en/

Q. EOS has issues with CPU /high FEES, same with Ether as GAS resulting to thier DAPPS clients transferring to other Chains.

Now, How can xDAI Solve this?
Does XDAI support high-intensity GAMING?

EOS is a great stack. To achieve scalability they use masternodes with very high requirements. xDai can work on much affordable hardware for validators and can scale on premise by agreement of validators via vertical scalability.

Q. How can I run a xDai node?
What are the requirements and rewards?

Here are the basic minimal technical requirements.

OS: Ubuntu Linux 16.04 LTS with root or sudo-user access over ssh
CPU: minimum 2 cores
RAM: minimum 4GB
Disk: SSD
Open network ports: SSH port (default 22 TCP), 30303 UDP. For security purposes, close other ports

You will also need a minimum of 20K STAKE.

The rewards are based on how much STAKE is placed in the protocol. Once selected to a set, each validator node will receive an equal portion of the rewards. However, this will be split within each node pool amongst any delegators who are also placing STAKE on your validator node. Validators will receive a minimum of 30% of those pool rewards. For more on the rewards, see:

https://www.xdaichain.com/for-stakers/stake-reward-mechanics

Q. Do you have as a plan to release a stable coin with the same characteristics, pegged to other currency, like GBP or EURO??

How do tou ensure in your DPoS consensus won’t happen a pseudocentralization if great stakers hold most of the tokens?

We are experimenting with a new stable token model with ephemeral collateral. You can try out a demo on Mainnet over here http://exit.xdaichain.com/

. How do tou ensure in your DPoS consensus won’t happen a pseudocentralization if great stakers hold most of the tokens?

POSDAO consensus equally distributes rewards for a staking epoch between pools. If one pool put more stake in their pool every other pool (delegators, validators) benefit from that. It’s our competitive advantage vs other staking protocols.

Q. In your website you make a summary of events and conference, I wanted to ask you what is your impression, your opinion on all these events and how do you see the reception by the community towards the xDai project?

Do you think the other “DAI” (cDai, pDai, etc) projects are rivals for you?

We’ve had amazing feedback from these conferences. If you look at the “crypto influencers” section of our site, you will see some of the feedback we’ve received from these events from people like Joe Lubin and Anthony Pompliano. It makes a big impression, often blockchain has a reputation of being very slow and difficult to use, so when you can make it easier than using a credit card for purchases, and then show users their transactions through transparent tools like BlockScout or the Splunk dashboards, it goes a long way.

https://www.xdaichain.com/about-xdai/news-and-information/crypto-influencers-on-xdai

Other Dai derivatives have their place and in fact we are using Chai in our protocol. We don’t see them as competing with our basic usage, most are project specific and not designed to take over one another but to create additional Dai-based functionality.

Q. USDT said the price is pegged and won’t crash, but it did. How will xDAI prevent this from happening so as not to rekt we traders?

xDai keeps peg with Dai but not with Dai’s value vs other tokens on the open market. The protocol is not rebalancing on price drop or increase of Dai.

Q. What are the benefits of being a user of xDai ? What xDai users get from achieving the chain’s goals? Do you want to be a leader in the mass distribution of blockchain technology?

Stable Payments, only needing a single token for payments and transactions, ease of use, developer tool access and unique features like an on-chain RNG. Please checkout our website for more Reasons to Use the xDai Chain.

Q. After listing on BITMAX, What incentive programs do you have to increase the token usage?? Any token burns, buyback, event trade or staking plans maybe??

We plan to work on STAKE adoption for multi-chain staking. Please check out our staking roadmap for xDai https://www.xdaichain.com/for-stakers/stake-and-staking

Q. Can you tell us some details about the Pre-Staking Program of Stake in StakeVault offered by Bitmax how it works how to earn rewards etc?

It’s a cool initiative. It will last for 3 months and provide 36.4% rewards for delegators. You can learn more here: https://bitmaxhelp.zendesk.com/hc/en-us/articles/360047202914

Q. The market crash and the market recovery.
The crash impacted too much and they barely recovering now.
Did anything happen to xdai when the market crashed worlwide?

No, we remained Stable 🙂 .

Twitter username of winners of twitter questions are :

@akpinarbayram21

@DuboisGio

@VishalHKothari

@Bitchimaqueen4

@kitty_racha

Telegram user id of winners of live AMA are :

@alice_wonderland12

@RozeQueen

@TSG_Crypt

@CryptoDurden

@Erol1763

Twitter winners are required to send their xDai wallet address to theblockcircle twitter handle and live ama winners are requested to send their xDai address to @proplene (telegram user id) .

Reward will be sent in nearest time possible .

230 cr
230 Cr has been interested in the cryptocurrency since 2017 when his friend introduced him to bitcoin .Interested by the bitcoin technology and suffering from centralised banking system he then decided to pursue his career in this space .

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