Why xDAI? – Let us count the ways…
The world’s on-going transition from traditional to technological systems, methods, and processes play a major part in humankind’s search for solutions to answer constant changes in standards of living. The aggravating circumstances surrounding the current pandemic crisis are bringing woke many industries up from their slumber and are hastily propping up their own R&Ds to be able to stay relevant amid the challenges of an accelerated digital shift of global economies to a Great Reset.
Xion’s visionary leadership has not caught its novel community unprepared but rather readied the players to new normal lifestyles for merchants and consumers alike. Along these lines, the ease of facilitation in opening online shopping stores within the Xion ecosystem meant the interoperability of blockchains in terms of digital payments gateways, farming, rewards, product and service acquisitions, consumer data protection, and a host of other trader-and-consumer relationship experiences.
What could be Xion’s logical choice to interchange with its native XGT token?
xDAI fits the bill.
Profiling the Crypto-Consumer
After more than a decade of Bitcoin being introduced into popular consciousness, cryptocurrencies are steadily creeping into the mainstream and sparked debates and discussions regarding switching adoption away from the inflationary fiat. And the noise keeps getting louder by the day.
A recent survey conducted by CryptoRefills reflected a 66% growing preference for cryptocurrencies as a method of payment. The resulting data suggested lower transaction fees and faster execution of payments as reasons for the increase in the adoption rate for payment coins. The report also brought into light how crypto-consumer growth expanded to more regions of the world with diverse socio-economic backgrounds.
Two Emerging Consumer Groups
Distinguished by country of residence, occupation, and income, two emerging worlds make up those who are motivated to shop online using cryptocurrencies.
The first group of crypto-consumers is those forced by external economic woes, such that they have little or no access to any banking services or payments transfer options, or their countries are beset by economic instabilities caused by poverty and conflict. Most in this group are coming from developing economies, self-employed at that, and earn crypto as payment for their virtual assistance services. They either spend their crypto out of necessity or have no means to cash them out.
Also belonging to this group are migrants who regularly send their hard-earned income from their adoptive country to their countries of origin. They find crypto as the best favorable alternative as legacy money transfers offer expensive transaction fees to go along with slow processes. The ability of crypto to conduct fast and cheap payments transfer is one of the reasons why migrants comprise the largest group of crypto-consumers worldwide by 4.75 more than the overall percentage.
Crypto-consumers that comprise the second group originate from developed countries who are far taking risks by dabbling with the latest technologies. Their genuine commitment to innovation is such that no amount of issues involving crypto shopping can scare them away, as the survey reveals.
Crypto Payments Issue Highlights
Sure, some rough roads await the nascent asset class as means of payment. Among the more obvious ones are high transaction fees, slow transaction processing time, and the high volatility of cryptocurrencies. Beyond that, it was discovered that more than 50% of surveyed users have no clue where to find retail platforms that accept assets-on-blockchains.
Another serious issue compounding crypto payments adoption comes product unavailability, a close second after costly transactions. Merchants have a penchant for rejecting crypto as payment, compared to 40% of crypto-consumers making purchases once a week at the least, and 75% do once a month.
With customer loyalty reflecting on the data that the number of crypto holders has accelerated in the last two years, merchants should be able to surmise that this is a great opportunity for them to accept crypto via payments gateways more available.
The xDAI Equation
Now, xDAI above others presents a good case to make the Xion Principle running on all fronts. It is the first-ever USD stable blockchain and multi-chain staking token, the xDAI chain is a stable payments EVM (Ethereum Virtual Machine) blockchain designed for fast and inexpensive transactions.
The chain uses a unique dual-token model: xDAI – as a stable token used for transactions, payments, and fees; and STAKE – a governance token used to support the underlying POSDAO Proof-of-Stake consensus. xDAIBridges provide the seamless ability to move tokens between the chains using the unique TokenBridge Architecture.
Tokens and arbitrary messages can also be passed across chains.
Let us count the ways…
- Fast transaction times (5 seconds) & low transaction fees (500 tx for $.01).
- Digital cash. A stable chain is ideal for real-world value exchange where 1 xDAI = 1 US Dollar.
- A stable token for transactions & gas fees.
- A green, energy-efficient, and ecologically aware blockchain network.
- Permissionless delegated Proof-Of-Stake-based consensus with public POSDAO.
- STAKE token for community consensus participation and incentives.
- Wide-ranging Community Support (see xDAI Validator Organizations).
- Extreme usability with tools like Burner Wallet & Burner Wallet 2.
- Growing ecosystem designed to support stable person-to-person transactions, microtransactions, conference currencies, community currencies, DeFi, NFTs, DAOs, games, and more
- Full-featured BlockScout Explorer.
- On-chain, decentralized Random Number Generator.
- Smart Contract, DApp & toolset compatibility with other Ethereum-based chains like Ethereum, Ethereum Classic, BSC, and others.
The XGT Cross-Chain Token
XGT is also one of the first real cross-chain tokens, making use of the Ethereum main net and xDAI chain at the same time! The traditional token functionalities (buy, sell, transfer) and platform-specific functionalities in the Xion platform will be implemented on the xDAI chain in order to save gas fees and allow a smooth user experience. Anyone holding XGT on the xDAI chain (through a promotion or staking rewards) can make use of them on the Xion platform for discounts, etc. Users are also free to transfer them to the Ethereum mainnet at any time if they wish to participate in the general public market.
Xion wants to allow any user to stake their xDAI in order to earn passive income & generate XGT. XGT can be used to make purchases through any of Xion’s Merchants. They can also be used to sell them, hold them, or enter the Xion Liquidity Pool. When a user deposits xDAI it will be automatically swapped to interest-bearing tokens.
As Xion wants to make user onboarding as easy as possible, especially for customers, it will facilitate the generation of XGT tokens on the xDAI chain, where they can directly be used for discounts.