As decentralized finance (DeFi) solutions continue to move forward, investors are searching for more efficient ways to handle their funds. The Ethereum (ETH) network has been the blockchain where most of the projects launched their solutions and decentralized applications (dApps). However, the network became highly congested, making it very difficult for normal retail users to get access to decentralized finance solutions.
While Ethereum 2.0 could be launched in the near future, several new platforms are expanding their solutions to keep the DeFi frenzy alive. The DAI community will now be able to use their DAI virtual currency on the RSK network. This second-layer blockchain that is connected to Bitcoin is now welcoming DAI users with a new digital asset called rDAI.
Users now have the possibility to transact using the DAI virtual currency. The main difference with the Ethereum network is related to the transaction fees and processing times. RSK is much more cost-efficient than Ethereum. This is useful for investors that are interested in handling virtual currencies and getting connected to the entire crypto ecosystem.
Ethereum fees have been one of the main issues affecting the Ethereum ecosystem. This is similar to what happened to Bitcoin over the last years when discussions were held on whether Bitcoin should increase its block size or not.
Back in 2017 with the bull market in the crypto space, Ethereum fees reached massively high levels. Although ETH was considered to be cheaper and faster than Bitcoin, it was affected by the same issue. CryptoKitties was at that time affecting the network’s performance.
Nowadays, with the expansion of DeFi platforms such as Uniswap (UNI) or yearn.finance (YFI), it has become very difficult for a retail user to make a cheap and fast transfer. This has pushed many users to other blockchain networks that have cheaper transactional costs and that offer more efficient services. RSK is one of these networks.
RSK is a recognized and secure smart contract blockchain network that works attached to the Bitcoin network. The main goal is to offer a fully decentralized internet that supports payments, storage, identity and other services such as marketplaces.
Due to the fact that RSK is compatible with the Ethereum Virtual Machine (EVM) and secured by the Bitcoin network, it is nowadays one of the main candidates to attract a larger number of users that want to use decentralized finance platforms.
The platform offers users low-cost transactions that are usually below $0.15 compared to $20 and above for the Ethereum network. Moreover, any smart contract that works on the Ethereum platform can also be deployed on the RSK network. The main difference is related to the fees, which we already mentioned are cheaper than on Ethereum.
DAI on RSK: rDAI
Due to the compatibility that there is between RSK and Ethereum smart contracts, ERC20 tokens can be moved from one chain to the other through the bridge. This makes it possible for users that have a wallet connected to the Ethereum network to swap different coins.
One of the new coins that have been added to RSK is DAI, one of the largest stablecoins in the market. This digital asset does not fluctuate as Bitcoin or Ethereum and it provides users with a hedge against volatility in the market.
Rather than calling it simply DAI, the DAI tokens running on the RSK network are called rDAI. One of the best ways to get the tokens on the RSK network is by using the Token Bridge dApp with Defiant Wallet. If you are not a fan of the DAI token and prefer to use USDT or other digital assets, you can exchange them through Defiant with a swap to, for example, rUSDT. Take into consideration that there is a KYC process every single time you want to swap a coin.
Furthermore, you can also use cash-in and cash-out services for your USDT and DAI digital currencies. This can be done in a few simple steps in countries such as Argentina, Venezuela or Uruguay. In the future, new countries could be added to the list.
RSK continues to grow and this can be seen with all the projects that are working with this network. The new rDAI implementation will make it possible for users to get access to one of the most efficient and secure networks in the market to handle DeFi solutions.