The platform uses Ethereum smart contracts to automate operations. The idea is to create an automated bridge between cryptocurrencies and fiat money.

DAI users in general will have an option to exchange this currency of parity with the dollar, created on Ethereum, for fiat currencies, using DAIHard. The platform was designed to offer the service without identity requirements and processes of knowing your client (KYC).

This relaunch occurs three months after the platform was launched for the first time and after it presented problems in its code. After an audit and changes in the code, the team said it is ready to offer exchanges between cryptocurrencies and fiat currencies without capturing sensitive information from its customers. The idea is that version v0.9.2 of DAIHarder works in the style of LocalBitcoins, a P2P exchange with a scrow system that uses smart contracts.

The method of transferring fiat money is open and agreed in advance. The user who sells cannot keep the DAI, in any case, they can only destroy them. This property of the system is related to the characteristics of Ethereum, on which this service is built, which offers a smart contract for this process.

Users can also exchange xDAI, native currency of a DAI side chain and which has parity with this token. For exchanges with this currency they will not need ETH since the commission for the transaction will be charged directly in xDAI.

In any case, users must have DAI to use the tool. The maximum amount they can acquire is triple the amount of DAI they deposit. It is important to highlight that it is not a risk-free platform, so users must take its use responsibly so that the exchanged funds reach their destination. Users with no experience could be in the situation of having to burn DAI to perform an operation and lose the full amount. In addition, it will include a rating scheme, so that users who burn DAIs before executing smart contracts in order to defraud their counterparts, receive a bad reputation, generating greater confidence in those who maintain the conditions of trade and run.

Users may change their DAI to any fiat currency, provided there are buyers in the currency of interest. The conditions of the exchange are programmed, added to the smart contract and executed automatically, in the period of time determined by both parties.

Users can set their own prices and timeout settings, and the idea is that exchanges are 100% customized, allowing DAIHard users control over their negotiation and without compromising their identity using KYC.