Maker (MKR)

What is MKR?

MKR, or Maker, is a platform that collects a number of smart contracts in Ethereum and maintains stability and provides MKR value support, also called as an existing cryptocurrency market measure. DAI through the CDP system (Collateralized Debt Positions). CDP is an automated mechanism for returns and decentralization to third parties.

MKR is intended to enable any user to use the Ethereum network and their resource to adequately generate DAI via the MKR platform. Thanks to this, it will be possible to freely use the cryptocurrency and it will contribute to a better transfer of capital online for certain goods, such as services or goods. In addition, the platform will allow cryptocurrencies to be stored for further and future savings.

Explaining the structure of CDP in more detail, it should be noted that they operate on the basis of assets that adequately secure the network through the presence of smart contracts.

What was the main thought when creating the MKR cryptocurrency? First of all, the desire to ensure price stability or even the guiding idea of transmitting capital without third parties that will be available on the blockchain network. As the makers of MKR point out, it is a token that is characterized as a token:

• tool,
• management,
• is used to recapitalize the Maker platform.

Fun fact: In the past, the MKR digital currency did not operate on the basis of actual ICOs. The tokens were bought through internet forums.

DAI what is it and what is it for?

First of all, Maker is responsible for DAI stabilization, and is referred to as the cryptocurrency itself, which is responsible for the security support segment. An important guarantee of stabilization is to be its reflection in the US dollar.

Maker allows you to generate DAI through the platform it offers. What is the additional role of DAI? First of all, enabling the correct and transparent transfer of monetary values, as well as collecting funds for the future.

How does MKR ensure the privacy of its users?

One of the ways MKR ensures the privacy of its users is the fact that it is possible to obtain decentralized leverage which, after creating the aforementioned Maker Dai tokens, allows them to be purchased by using the leverage. This potentially allows us to expand it, and also allows us to create another CDP where the tokens will be issued. It should be mentioned that we can use it multiple times. Thus, it is impossible to purchase MKR through the cryptocurrency exchange as the Ethereum value generated by Maker Dai is "held".

How does the Maker platform work?

When it comes to the MKR cryptocurrency, it is important to mention the basis of the Maker platform, which is based on the Ethereum network. For this activity, he needs smart contracts, through which it is possible to record Maker Dai tokens, which correspond to the definition of stablecoins and are the equivalent of the US dollar. What's more, the Ethereum virtual currencies (ETH) and the Maker (MKR) are also registered on the platform. Maker is responsible for the proper issuance of Maker Dai, which in relation to the more popular stablecoins are not in the ratio of 1: 1 to the US dollar, but refers to the ETH virtual currency.

This is how ETH is stored in the MKR smart contract, where tokens called Maker Dai are generated that allow specific transactions to be made, and its sale is done by transmitting the US dollar.

So what is the specificity? First of all, enabling the generation of tokens in the value assigned to the user. Undoubtedly, this is possible thanks to the stability of investments, which is very important in the cryptocurrency management world.

How to mine MKR cryptocurrency?

MKR is characterized by the fact that DAI creates funds through the Maker platform, where they are saved as Ethereu virtual currencies. Moreover, capital can be transferred and stored thanks to CDP smart contracts. As already mentioned in the trivia, the MKR cryptocurrency did not have its official ICO, and the tokens were sold through various online forums. What's more, it was also possible to buy a virtual currency from the developer, and then the possibility of its purchase was extended, among others on the Open Ledger exchange.

Potential uses of the MKR cryptocurrency

The primary use of the MKR cryptocurrency is that it can serve as a means of paying transaction fees on the Maker platform. This means that anything that is a standard of value is used to exchange for a purchased good or service. Moreover, it is used as the counterpart of the ETH value and acts as collateral assets. Thus, it can serve as a hedging asset, which is secured thanks to protocols that ensure the security of the capital placed. MKR is also responsible for giving users voting rights in line with the voting system in accordance with the Maker system.

Advantages and disadvantages of MKR

One of the drawbacks is undoubtedly the fact that it is closely related to the ETH cryptocurrency, so it does not constitute a separate cryptocurrency that is independent of any exchange rate. Moreover, MKR serves primarily as a good allocation of savings, however, investors' earning potential is somewhat limited.

One of the advantages of MKR is the fact that it is a stablecoin that is decentralized, impartial and Ethereum secured. Due to the fact that it is connected to the Ethereum network on the basis of blockchain technology, we have the possibility of a wide selection of cryptocurrency wallets that will also support the ETH currency. What's more, thanks to the possibilities in which the MKR cryptocurrency was created, DAI is generated in an easy and direct way. Moreover, the simplicity consists in the fact that, once generated or purchased, DAI is used in the same way as other virtual currencies, i.e. they can be sent and used as regular payments for given goods and allows them to be properly stored for further savings. It is worth mentioning here that DAI is reliably secured, i.e. in a way that the value of the collateral is much higher than the debt. DAI also enables transparency in such a way that DAI transactions are generally available on the Ethereum network.

MKR and Bitcoin - basic differences

How much is MKR? On which exchanges is it listed?

When deciding to buy a cryptocurrency through the exchange, it is worth scanning the market in terms of the risk of fraud, i.e. whether there have been any irregularities in the given exchange, suspicions or manipulations so far. It is also important to be guided by the ranking prepared systematically by specialist websites that are considering for and against such possibilities. It is recommended to invest in accordance with our specialist knowledge and it is important to educate yourself in the field of cryptocurrencies in order to know the specifics of each of the money allocation options.

Only examples of exchanges that can be used for the MKR cryptocurrency will be presented below.

Cryptocurrency wallets for MKR - which one to choose?

Cryptocurrency users know for a long time how important it is to store their own cryptocurrencies. We often hear that there have been frauds or frauds on the stock exchanges on the market. It is therefore worth buying, in addition to trusting the wallets offered on the stock exchange, the more secure ones, such as hardware wallets, which will provide us with a guarantee of keeping our funds. For smaller values, mobile or browser wallets functioning on the market will be perfect, the undoubted advantage of which is the ability to move and use in each region only with restrictions in the Internet scope, which is necessary to launch our wallet.

You should be particularly careful with the privacy of the private key, which, as the name suggests, should not be made available to third parties.

Examples of cryptocurrency wallets for MKR

Due to the fact that MKR is a token, it allows you to choose a variety of wallets that are offered on the crypto market. One of them is the Ledger hardware wallet, which is offered in the Nano S or Nano Blue models. What's more, we can also use the so-called hot wallets that support many cryptocurrencies apart from MKR and one of the most popular is Exodus. In addition, browser wallets are also noteworthy, where the most popular is MyEtherWallet and due to the possibility of using the Etherum network in MKR, it is possible to use all wallets that allow, including cryptocurrency Ether.