xDai is a stablechain that operates as a parallel blockchain to Ethereum. It was developed through the POA Network, which allows carrying out transactions with a low gas fee, equal to 1 Gwei, and to create a block in just 5 seconds.
The birth of this project was made possible thanks to a partnership between POA Network and MakerDAO.
It has its own native token with the same name of the protocol, xDai, and is anchored to the value of Dai, the stablecoin of Maker, with a 1:1 ratio. As such, it too can be thought of and defined as a stablecoin pegged 1:1 to the dollar value.
Users can convert their DAI to xDai through the POA network, which acts as a bridge between the Ethereum blockchain and the xDai stablechain.
The Smart Contracts of this protocol offers some degree of compatibility with other chains of the EVM, which stands for Ethereum Virtual Machine. The EVM is an ecosystem consisting of a team dedicated to the development and maintenance of the Ethereum blockchain.
The proper functioning of the network is supported by a group of validators who implement a consensus process for transactions. Currently, the validators are organizations selected by the Ethereum community, which are Decentralized Autonomous Organizations (DAO), as are all those that are part of the crypto world after all.