Ethereum is probably one of the most well-know cryptos around the world, together with Bitcoin obviously.
Its value has kept increasing at an incredible pace over the past few years. The advantage has also been that it was very cheap to send ETH back and forth.
However it has become increasingly expensive to exchange ETH. Just imagine that you want to send the equivalent of 50 USD in ETH to a friend. It used to cost a few cents in what is called “gas fees”. Now, it’s sometimes 25 USD!
Not only can it be expensive to exchange ETH, but ETH is also extremely volatile. Therefore, a USD-pegged version of ETH was created: Dai! That’s good if you want to have a bit more stability, but it does not solve the gas fee issue.
Therefore, xDai was created! xDai is actually based on another blockchain but it is compatible with ETH and linked to Dai actually.
Now, while xDai is probably not as secure as ETH/Dai, the advantage is that the gas fees are nearly null. This makes it possible to experiment with a crypto (your own crypto even) at a very minimal cost.