Jan 26, 2019 00:30 UTC
Jan 26, 2019 at 00:30 UTC
Coingate, a well-known company that works in the crypto payment processing space, recently announced that it will now allow its numerous vendors to accept payments in DAI. This integration is a rather exciting affair as it not only expands the roster of crypto coins available on Coingate, but also gives the Maker DAI Coin itself some much-deserved and perhaps much-needed recognition.
As most readers will know, DAI is an ERC20 token built as a stablecoin on the Ethereum blockchain by the Maker project. The value of a single DAI token is pegged to one USD or United States Dollar. Unlike the Tether stablecoin, DAI combats the threats of excessive centralization by engaging and including both economic incentives and market mechanisms.
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As the Coingate blog tells us, DAI has managed to be the very first stablecoin to have been integrated into this platform. Its uniqueness also lies in the facts that it is completely decentralized while being backed by a viable asset.
The blog explains this point in the following terms:
“Stablecoins are cryptocurrencies designed to significantly reduce price volatility. Dai, the very first stablecoin on our payment gateway, stands out because it is asset-backed and fully decentralized. The value of Dai is supported by the value of the collateral that supports the currency. It successfully managed to maintain it’s peg even during the most volatile times in 2018.”
The blog post also emphasizes on the uniqueness and novelty of the DAI stablecoin that led the payment gateway to choose it in the first place. It goes:
“It is one of the rare stablecoins that is not backed by any centralized authority. Instead, it depends on the assets backing the currency and the community to maintain its value, providing various incentives for the participants of the network.”
Coingate has over 4,500 vendors that are a part of its roster. With this brand-new integration, even these numerous vendors can see a surge in their customer count, drawing from the chunk of people that own and use the DAI coin already. In an infographic titled “Why DAI?”, the payment gateway outlines six main advantages of DAI.
These include its price stability, user convenience, ease of trading, durability, decentralization and complete user control.
All in all, this is an exciting proposition. The integration really does hold a great deal of promise. To quote the introductory paragraph of the blog post:
“From this day forward, all merchants that use CoinGate services can expect some new customers as they now accept stablecoin Dai as a payment option, among others. It goes vice versa – Dai owners are now able to spend it at more than 4,500 of our online vendors! Whether you wish to buy something like a video game, or web hosting, or wristwatch, or anything else, now you definitely can.”