Crypto Noobs #3 - Getting Started with xDai Chain

Welcome back to Crypto Noobs!
Hey there, happy hump day. Hope you're having a great day so far. Today, I'd like to talk about one of my favorite Ethereum based side-chain xDai. Since xDai is Ethereum based, it has all of the cool features of the Mainnet but adds some cool features and advantages. I started using xDai about a year ago when I first heard Griff Green speak about it on Crypt0's News during an interview. Check out the full interview, which is a deep dive into DeFi here and be sure to subscribe to the channel. Incredible source of unbiased crypto news and information.

Diving into xDai
Ok, so xDai at its core is an Ethereum side-chain meaning it can run Ethereum applications and use Ethereum wallets like Metamask. The idea behind it is to have the full feature set of Ethereum, but add a native stablecoin(xDai) and a separate governance token(STAKE). It is a Proof of Stake network utilizing POSDAO consensus which you can find more about here. Gas fees are paid in xDai, but it works a little different than the Ethereum Mainnet. Gas fees are calculated in USD and you can do around 500 transactions for about $0.01. This model creates a more stable payments network in terms of USD value while also providing the use of Ethereum to people who don't want to pay an arm and a leg for 1 transaction. The STAKE token can be used by holders to stake in order to vote on governance proposals, network upgrades, gas fees, etc... Transactions on the xDai are nearly instant and did I mention how insanely cheap they are?

Staking STAKE on xDai rewards users in both xDai and STAKE. In addition to rewards, like I mentioned earlier, staking allows you to vote on governance proposals as well as create your own proposals. The most interesting part about the STAKE token is that it is multi-chain enabled for staking on other networks.

xDai is much more scalable than Ethereum currently due to its high throughput and insanely low fees. This makes it perfect for gaming and dapps because micro-transactions are actually micro. This is especially important for more complex contract interactions that would price some users out of being able to use the Ethereum network due to high gas fees. Another interesting thing about the xDai chain is that its validators are selected by a completely random on chain generator eliminating fear of centralization.

xdai5.jpg

xDai chain has multiple bridges to the Ethereum main net and even supports bridged tokens from BSC or the Ethereum mainnet. There are also bridges to layer 2 solutions such as Polygon and other EVM chains.

Wow, that's a lot of info. How do I use xDai?
Well, I definitely recommend visiting the official xDai website and reading more into it. I am no expert, I just happen to use the network nearly every day. Let's get into getting set up to use xDai. Don't worry. It's very easy.

Step 1: Install Metamask, which I assume you probably already have installed if you are reading this post.
Step 2: Click on the Ethereum Mainnet drop down, and select Custom RPC.

Step 3: Here, you'll enter the chain information as follows and click save:
Network Name: xDai
New RPC URL: https://rpc.xdaichain.com/
Chain ID: 0x64
Symbol: xDai
Block Explorer URL: https://blockscout.com/xdai/mainnet

Step 4: Your Metamask is now able to connect to the xDai chain, so you'll need a little xDai for transactions. The cool thing is, since transactions cost almost nothing, there's an xDai faucet that'll give you enough xDai for 100 transactions for FREE. Get yourself some xDai for FREE here. Otherwise, you can convert Dai on Ethereum to xDai via the official bridge here. You can even purchase xDai on chain with fiat directly here!
Thanks for reading.
Let me know what you think in the comments please!

Peace.