#Educational_Post

DAI is a cryptocurrency categorized as a stablecoin. It aims to keep its value consistent with the U.S. dollar at a 1:1 ratio. It has its own decentralized governing organization, MakerDAO, to regulate its value. It was one of the first to successfully transition from a company to a decentralised autonomous organisation (DAO).

Users can generate DAI through the Maker Protocol, a system that leverages locked up collateral to generate the token. Users can use other cryptocurrencies as collateral or buy DAI using traditional fiat currencies on cryptocurrency exchanges like Coinbase.

What makes DAI different?

A framework of self-executing smart contracts autonomously controls the price of DAI. If DAI's price deviates from USD, MakerDAO's algorithms will create or burn tokens to stabilize DAI's price.

As a result, DAI's stability is not dependent on a single party. An effective algorithm benefits token holders since burnt tokens increase the value of existing ones. This system has seen DAI maintain a relatively stable value for over six years.

How does DAI work?

DAI's value remains relatively stable due to stored collateral that backs up its value. For every $1 of DAI, there is more than $1 of other cryptos that back it. As a result, DAI holds value. Other cryptocurrencies act as collateral for DAI to maintain this value against the US dollar. DAI uses Ethereum (ETH) and other Ethereum-based cryptos as collateral and smart contracts on the Ethereum blockchain.

#Binance #BTC #crypto2023 #BNB

BTC dominance calculates Bitcoin's current share of the global crypto market cap. Short for “market capitalization,” market cap refers to the value that's currently stored in an asset. Typically, people measure market cap in terms of fiat currencies like USD.

In cryptocurrency, people calculate a market cap by multiplying the number of available tokens by the token's current price. 

For example, Bitcoin's price is $29,780, with 19.1 million coins in circulation. Here, you’ll multiply $29,780 by 19.1 million to get a market cap of $565 billion. 

How is BTC market dominance calculated?

To determine BTC dominance, you need to know Bitcoin’s current market cap and the overall crypto market cap. Most reputable coin price aggregator sites like CoinGecko and CoinMarketCap show this data on their homepage. Once you have these numbers, divide the Bitcoin market cap by the global crypto market cap. This formula will reveal the percentage of cash in the crypto market that's stored in Bitcoin.

For example, Bitcoin’s market cap at the time of writing is $565 billion, and the global crypto market cap is $1.3 Trillion. After dividing $565 billion by $1.3 Trillion , you get 47%. This means that 47% of the global crypto market cap is now in Bitcoin. 

#Binance #BTC #crypto2023 #BNB #bitcoin