Crypto Academy Week 4 Homework Post for @gbenga

Hello steemians

In this post , I am here to submit my homework task 4 which I have carried out as required by @gbenga, crypto professor.

Explain in full a project built on the Ethereum Blockchain.

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What is Ethereum?

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If you are someone relatively unfamiliar with the crypto ecosystem, you have probably heard of Ethereum . It is the probably the most famous after Bitcoin. But Ethereum is not a currency , it's a platform. It's currency is known as Ether.

Ethereum changed the use of blockchain forever. From an open ledger to facilitate only P2P transfer of assets , the blockchain became a platform upon which smart contracts and Decentralized Application, the famous Dapps could be built.

Ethereum was first proposed in late 2013 and then launched in 2015 by Vitalik Buterin . Ethereum is do itself platform for Decentralized programs . The Ethereum platform has thousands of independent computers running it , that means it's fully decentralized.

A program is deployed once on the Ethereum network. These computers are also known as nodes. This will confirm to be executed in writing.

How the Ethereum Blockchain and Ethereum Works?

Ethereum is the infrastructure for running Dapps website. Ethereum allows people to attach directly with one other without a central authority to required care of things. Ethereum is a network of computers that together combined into one powerful Decentralized super computer.

A global open-source platform for the Decentralized Application. That's the one line description for the Ethereum.

Ethereum's coding language Solidity is used to write "Smart Contracts" that are logic running a Decentralized application.

Ethereum Developers writes several terms and conditions for their programs or Dapp. Then the Ethereum Network executes it. They are called Smart Contracts because they affect all of the aspects of the contract.

On Ethereum.org , With thousands of games , decentralized exchanges , finance apps running on top of the Ethereum Blockchain. The three important concepts to understand about ethereum are smart contracts, decentralization, and privacy.

Project Built on the Ethereum Blockchain

Right now , There are many projects that are built on the Ethereum blockchain ; Maker Dao , Uniswap , Chainlink , Aave & many more.

Here we will discus about Uniswap and explain:

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What is Uniswap?

Decentralized Exchanges have solved many of the problems of their centralized counterparts. Problems that include risks such as hacking and arbitrary fees. However these centralized exchanges have their own problems mainly lack of liquidity which means a lack of amount of money sloshing around an exchange that makes trading faster and more efficient.

That's where Uniswap comes in . It's trying to solve decentralized exchanges liquidity problem. Uniswap is a Decentralized Crypto Exchange based on Ethereum Blockchain. To be more precise, it is considered an automated liquidity protocol. Which is very important in the present times.

Uniswap is a different type of exchange that is completely Decentralized. Which means that it is not owned and operated by a single entity. And Uniswap uses a relatively new type of trading model that protocol is called the Automated Liquidity Protocol.

To allow exchange without relying on the buyers and sellers who create that liquidity by the exchangers. Uniswap is created by Hayden Adams was inspired to create the protocol by a post made by Ethereum founder.

Features of Uniswap

• Uniswap is an automated liquidity market.
• No order book or central party is required for the transaction.
• To enable trading without an order book, Uniswap has developed a model called the liquidity pool.
• Anyone with an Ethereum address can contribute to the liquidity of exchange and make money from it.
• It allows users to exchange ERC20 tokens, including the native ETH token, without intermediaries.
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How does Uniswap Works?

Since Uniswap is built on the Ethereum Blockchain , using smart contracts. Uniswap replaces traditional centralized market tools like exchanges, listings and limit order books with automated and permissionless. Essentially any ERC token can be launched until there is a liquidity pool available to merchants.

Any token can be added to Uniswap by funding it with equivalent value of eth and ERC20 token being traded.

Generally Uniswap is that which is balancing the value of tokens and swapping them based on how much people want to buy or sell them. Absolutely and ERC20 token can be listed on Uniswap , No permission required. Each token has its own smart contracts and liquidity pool.

How to use Uniswap?

Uniswap is an open source protocol based on Ethereum blockchain , That means anyone can create their application and also use it . For this you should have a wallet which supports Ethereum Blockchain.

However , The most commonly used one is
https://app.uniswap.org
https://uniswap.exchange

• First of all you have to install Metamask browser on your device. I am currently using Android.

^{Metamask is a browser extension for using Ethereum blockchain in a normal browser. The Metamask browser extension replaces the Chrome browser with the Ethereum browser.}

• Go to the Uniswap website

^{Uniswap Interface | HomePage https://app.uniswap.org}

• Click on the Use Uniswap . Now you have to connect the wallet.

• Click on “Connect to a wallet” . You will see the many options to connect to a wallet. You can connect the wallet at your wish.

• Select the token you wish to exchange.

• Select the token you want to exchange.

• Click on Swap.

• Then preview the transaction in the popup window.

• Confirm transaction request in your wallet.

• Wait for the transaction to be confirmed on the Ethereum wallet.

Advantages of Uniswap

For the past few years, Uniswap has established its hold on the largely Decentralized Exchange market. So There are many benefits and advantages of Uniswap.

• Uniswap uses an automated market maker protocol in which it trades with a smart contract called the liquidity pool.
• AMM protocols are unlicensed protocols that do not require the KYC process.
• Uniswap is also a great way for supporters of a startup project to finance it.
• From an investor point of view, Uniswap allows everyone to provide liquidity to the market and then collect trading commissions.
• From the perspective of a trader, Uniswap is a deity. This gives traders the opportunity to exploit price discrepancies between Unuswap's price quotes and the rest of the market. ²
• Two-factor authentication
• Quick buying & selling options
• Ease to Use
• Uniswap at High level

Cc:-
@steemitblog
@steemcurator01
@steemcurator02
@gbenga