POA Network

POA Network R&D created xDai as the first USD Stable Chain

Differences between POA Network and xDai Chain

POA Network is an R&D organization as well as a network, and the xDai stable chain is a chain created by the POA Network. Other POA projects include BlockScout and TokenBridge (both recipients of Ecosystem Support from the Ethereum Foundation).

The first iteration of the xDai chain was modeled after the POA Network chain but included some important advancements. xDai was created as the first stable chain, meaning payments and fees were all completely stable and predictable. It inherited the speed and low fees of POA, but allowed for many new kinds of use cases, creating rapid adoption in the community.

In POSDAO phase 2, xDai will move to a permissionless chain, making it more decentralized & ideal as a stable payment platform.

POA Chain

xDai Chain

Native Token

POA - Volatile

xDai - Stable

Validators

Limited to US Notaries

Open: Known Worldwide Organizations - moving to decentralized community

Bridge

POA-to-ETH Bridge

ETH-to-xDai Bridge, AMB bridge for projects

Consensus

Proof of Autonomy (POA)

POSDAO Phase 1 (delegated Proof of Stake)

Liquidity

Limited with POA20

Very High - based on Dai liquidity

Tooling

Developed tools, specialized usage

Advanced & User-Friendly tools like Burner Wallet, Splunk

On-Chain Randomness

Yes

Yes

Blocktime & Fees

5 seconds, low (volatile) fees

5 seconds, 500 tx for less than $.01

Use Cases

Games, subsidized transactions, no-loss savings lotteries

DeFi, stable payments, community currencies, DAO- based projects

Differences between POA token and STAKE token

The POA token is the native currency of the POA Core network. It is used to send transactions on the chain, and to pay fees for those transactions. Validators earn POA for each block that they seal. POA is a volatile token - the price changes based on market forces. This makes it challenging to use for payments as the value can change rapidly. In addition, POA can be bridged to the Ethereum mainnet and used as POA20.

STAKE is an entirely different kind of token - it is used to secure the underlying consensus of a chain. Validators and delegators use STAKE as collateral in a Proof-of-Stake consensus architecture. On the xDai chain, xDai is used for stable transactions (similar to POA, but as a stablecoin) and STAKE protects the underlying consensus (honest validators earn rewards, misbehaving validators are banned).

POA

xDai

STAKE

Type

Volatile

Stable

Volatile

Purpose

Transactions, fees, medium of exchange

Transactions, fees, medium of exchange, P2P payments

Protect consensus

Network

POA Network

xDai Network

Initially xDai Network. Multi-chain capability in the future.

Initial Supply

252,460,800

Variable, bridged from Dai

8,537,500