xDai

xDai is a sidechain of the Ethereum network designed to provide fast, inexpensive transactions for everyday use. It runs a Proof-of-Authority style consensus and uses the stablecoin xDai as its native currency, which is intended to be USD-pegged. This combination aims to enable reliable payments, microtransactions, and value transfers with minimal fees and rapid finality.

The chain is connected to Ethereum through a bridge that allows value to move between Ethereum mainnet and the xDai chain. In practice, Dai can be locked on Ethereum and converted to xDai on the sidechain, where it can be spent as the primary unit of account. Conversely, xDai can be burned on the chain to release Dai on Ethereum. Transactions on the xDai/Gnosis Chain are paid for in xDai, contributing to low-cost and fast operations relative to mainnet.

In 2021–2022, the project joined the broader Gnosis ecosystem and was rebranded to Gnosis Chain, while the xDai token and the bridge functionality continued to operate. The rebrand reflected a broader focus beyond a single sidechain, though xDai remains the widely used USD-stable asset on the network.

Use cases on xDai/Gnosis Chain include retail payments, decentralized applications that require predictable transaction costs, and host ecosystems such as wallets and DeFi protocols that benefit from faster settlements and lower fees. The network emphasizes interoperability with Ethereum through bridges and tooling, while governance and validator participation are coordinated by the Gnosis team and delegated nodes.

Overall, xDai/Gnosis Chain offers a scalable alternative for users and developers seeking stable-valued transactions and rapid transfer of assets within the Ethereum ecosystem, with the caveat of centralization risks inherent in a PoA model and cross-chain bridges.