What is Maker digital currency?
Maker (MKR) is a digital currency created to facilitate the development of decentralized applications and smart contracts on the Ethereum blockchain. Maker was developed by Rune Christensen, founder of MakerDAO, and launched in 2017 as an ERC-20 token. The primary goal of MKR is to provide stability for users when dealing with volatile cryptocurrency markets while also providing access to financial services that are not available through traditional banking systems.
The core technology behind Maker is Dai – a stablecoin pegged 1:1 with the US Dollar which allows users to transact without worrying about market fluctuations or exchange rate risk. To ensure its value remains stable against USD, Dai uses Collateralized Debt Positions (CDPs). When someone wants to create Dai they must first open up a CDP where they deposit collateral such as Ether or other tokens into it so that if their position moves too far away from being fully collateralized then their CDP will be liquidated automatically by smart contract code built into maker’s system called “the Vault” . This creates an incentive for users who want access liquidity without having exposure volatility in crypto markets but still maintain some control over their funds via ownership rights within these Vaults
In addition, MKR holders have voting rights on key decisions concerning how much money should be printed each month and how many new vaults can be opened at any given time - making them stakeholders in this ecosystem rather than just passive investors like most other cryptocurrencies out there today. Finally, because all transactions involving DAI require fees denominated in MKR tokens this creates demand for them leading potentially higher prices down line which could benefit early adopters significantly if successful!