Steemit Crypto Academy Season 4 Beginners' course - Homework Post for Professor @wahyunahrul |Task 8: [Decentralized Applications (dApps)]
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Hello steemians, it is another season of amazing crypto currency, and I am so happy to be here. After reading through the lecture on DApp by professor @wahyunahrul I have learned and this is my homework post.
I will be doing a detail analysis of two DApps today, giving both their similarities and differences with their unique Features. But first let us understand what a DApp is.
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Before the invention of the blockchain technology, everything was basically centralized even down to applications that we use on our mobile phones like Facebook, Twitter. These applications have a central unit which controls every information and how to use the information. But with the coming of a new era, the Blockchain era, developers are now able to produce applications that are not control by central unit.
DApp which stands for Decentralized Applications can be defined as a peer-to-peer computerized application that runs on a decentralized computing system. That is to say on a DApp, everyone has the right to participate in the running of the application and not a central unit or authority. A Decentralized application Mostly runs on a Blockchain network.
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For the purpose of this assignments, I will choose to do my analysis and comparison of two Exchange DApps, Pancakeswap and Uniswap.
Pancakeswap.
What is Pancakeswap
Pancakeswap is an Automated Market Marking Decentralized Exchange applications that allows users to trade crypto currencies and token without an intermediary. Pancakeswap is a DeFi service that enable traders all over the world to trade in their favourite tokens without loosing huge cuts to middle man.
The governance currency or token of Pancakeswap is called CAKE.
As of the time of the post
- CAKE Price= $20.17
- Marketcap = $4,423,214,566
- 24hr trading volume = 473,989,412
On coinmarketcap.com
It is worth noting that Pancakeswap runs on the Binance smart chain platform on the Binance Crypto Exchange
Features of Pancakeswap.
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- Exchange/Swap feature.
Like the name goes, Pancakeswap. The main feature of the pancakeswap is the exchange feature. As we did mention in the definition, Pancakeswap is an exchange platform. The exchange feature enables traders to swap Crypto currencies.
This feature permits traders to swap their tokens with any token at anytime on the platform.
Since Pancakeswap is built on an automated Market Marker system, it relies on traders to fuel the liquidity pool where crypto traders can lock their tokens and get rewards. These permits the swap of tokens to take place at anytime without the use of an order book.
- Farming.
Another unique feature of the pancakeswap is the farming feature. Farming in Pancakeswap is when traders stake their token in order to earn CAKE. Farming requires traders to stake two token to get the LP token which is then stake to earn CAKE rewards while still keeping a position in the other two currencies.
- Syrup Pool.
The Syrup Pool is simply an IOU pool where traders get to stake the CAKE token they have earned for more CAKE rewards. This is like earning a token from staking and lending the token to Pancakeswap to earn more tokens..
- Prediction ( BETA).
This is a recently launched feature of the pancakeswap platform. This feature allows traders to predict the price movement of currencies, whether a currency pair will be higher or lower in future than it was at the time of the prediction. If traders are right the get to earn a token
- Lottery
Users of Pancakeswap are allowed to use lottery tickets to win very huge rewards in CAKE token. Traders get lottery tickets by using CAKE token to buy the tickets and each ticket last for about 6 hours. Users with tickets participate in a draw, at the end of the draw user with tickets that match the ticket in the draw get rewarded with CAKE token. However, if you don't have an exact match but a 2 or 3 digit match, you stand a chance of get getting a reward still.
- Collectibles
This feature also offer traders and users of Pancakeswap to participate in exchange of Non Fungible tokens. These collectibles can be traded for CAKE token on the platform.
- Team Battle
This is a gaming feature of the pancakeswap where users all over the world can participate in the game competition with other teams to win rewards like CAKE token, NFT collectibles etc. This is a live Easter battle where traders and teams are competing for over $200,000 in CAKE token.
Uniswap.
What is Uniswap.
Uniswap is one of the largest decentralized exchange Applications in the world that runs on the Ethereum Blockchain Network. Uniswap was built on 2018 and it supports all ERC-20 token. It is an open source code that permit developers to copy the code and develop their own Decentralized platform.
Uniswap runs on two smart contracts that is the ** Factory Contract** and the Exchange contract.
The native token to Uniswap platform is UNI which allows voting rights to holders to participate in the governance protocol of the platform.
As of the time of this post
- UNI price = $24.27
- Marketcap = $14,842,556,417
- 24hr trading volume = $635,541,062
On coinmarketcap.com
Features of Uniswap.
- Swap
As earlier mentioned, Uniswap is an exchange platform that permits the exchange of currencies, so one of the main feature of the Uniswap is the swap feature. Traders can swap ERC-20 token on the Uniswap platform.
The Uniswap applications uses an automated Market Marker system allowing users to lock tokens in a liquidity pool and so order books are not required.
- Pool.
As we earlier mentioned, Uniswap uses the automated Market Marker system where traders lock their money on a liquidity pool to gain rewards. Pool is a feature of Uniswap where traders get to deposit tokens. Liquidity pools are venues to trade ERC-20 tokens.
When traders deposit tokens into the pools, a unique token known as liquidity token is minted and given to the depositor.
- Vote.
A unique feature of Uniswap is that it gives traders and users the opportunity to participate in governance of the platform through voting. Uniswap develop proposals and post it through their Voting dashboard, users with voting rights can then vote on proposals submitting.
- Charts
The last but not the least feature of Uniswap is the chart feature. This feature shows live chart of swaps that are being done on Uniswap and the most frequent tokens that are being swapped.
Similarities between Pancakeswap and Uniswap.
DEX platform.
The main similarity between Pancakeswap and Uniswap is that both platforms are Decentralized Exchange platform where currencies can be swapped.Automated Market Marker.
Another striking similarity is that both the pancakeswap and Uniswap applications use the Automated Market Marker system where traders can deposit tokens in a pool to get future rewards and as such, they both don't require an order book to operate. Liquidity pool provide price and slippage anytime a trader wants to swap token.
Difference between Pancakeswap and Uniswap.
Blockchain.
One of the main difference between Uniswap and Pancakeswap is the Blockchain network in which they run on. The Uniswap applications run on the Ethereum Blockchain Network while the Pancakeswap application runs on the Binance smart chain Blockchain on Binance crypto exchange.Cost.
Another clearing difference between Pancakeswap and Uniswap applications is the cost of transaction. Pancakeswap is way cheaper in transaction cost compared to the Uniswap platform.Listed Tokens.
The number of tokens listed on the Uniswap platform is higher than that of the Pancakeswap. Uniswap has over 1500 tokens listed while Pancakeswap has over 200 tokensLongevity.
Another different between the two applications is the length of time they have been operating. Uniswap was launched right back in 2018 making it 3 years of existence while Pancakeswap was launched in 2020 making it just over a year. This is partly the reason why coins listed on Uniswap is greater than that of Pancakeswap..Features.
Pancakeswap has way more features than Uniswap. Thus Pancakeswap offers more advantage than Uniswap.
From my above analysis, we can see that both the Pancakeswap application and Uniswap application are great platforms. They are amongst the top DeFi Exchange platforms in the world with unique features that make them stand out.
It shows from the differences that Uniswap has more tokens listed on the platform than Pancakeswap mainly due to the longevity of both platforms.
However, my analysis of the two platforms shows that the Pancakeswap application had more potentials than the Uniswap platform even though it was recently launched due to the following reasons.
Cost of transaction. The cost of transacting in Pancakeswap is far lower than that of Uniswap, accounting for the recent adaptation of Pancakeswap. The trading of Pancakeswap as of the day of this post was higher than that of Uniswap looking at the DAppRadar.
Features. Pancakeswap offers more features than Uniswap. Features like the lottery, Collectibles, Team Battle are exciting Features and offers more to traders and these are absent on Uniswap.
DAppRadar.
Both platforms are on the DAppRadar and the Pancakeswap is above Uniswap.
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From the analysis above it can be seen that the world is gradually going towards the Blockchain technology. Applications eliminating central authorities are on the rise.
Uniswap and Pancakeswap play important role in the Exchange of tokens and currencies in the crypto space. A comparative analysis shows that there is potential in the Pancakeswap application in future.
I want to thank professor @wahyunahrul once more for the lecture. It was a great time reading and taking time to do this assignment.
CC. Professor @wahyunahrul.