What is xDai?
The term “xDai” refers both to a blockchain and a token. xDai Chain is a separate blockchain that operates as an Ethereum sidechain. Developed through a partnership between POA Network and MakerDAO, xDai Chain uses Proof of Autonomy consensus. Proof of Autonomy resembles Proof of Authority, but validators are managed by a DAO instead of a centralized authority. Other properties of xDai Chain include 5-second block times and low gas prices.
The xDai token is xDai Chain’s native asset (analogous to ETH on Ethereum). xDai is a 1:1 representation of MakerDAO’s Dai stablecoin. Users can convert Dai to xDai via POA Network’s TokenBridge, which connects Ethereum and xDai Chain.
As of March 2019, xDai Chain is relatively new, but it has attracted the attention of the ecosystem, in no small part thanks to Austin Griffith’s Burner Wallet, which provides a quick and easy way to carry and exchange small amounts of spending-crypto using a mobile browser.