DECENTRALIZED APPLICATIONS (DAPPS) - STEEMIT CRYPTO ACADEMY SEASON 5 - HOMEWORK POST FOR TASK 08
Hello crypto enthusiasts, I am back again with this Season 5 Homework task 8 post for professor @wahyunahrul. The task is all about decentralized applications (dApps), and i will take my time and answer the questions below.
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What are dApps? Explain the working system of dApps? What are the differences between dApps and other applications? Explain the advantages and disadvantages of dApps? How can dApps developers promote their apps? What should we pay attention to when using dApps? How do we find the information of a DApp that we want to know? Provide the steps (Screenshot required).
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There are different apps that function with the digital currency, and one of these apps is the Decentralized Application (dApps)
Decentralized Applications (dApps) can be defined as an application that operates on a peer-to-peer network of computers or blockchain which was created on a system called the Decentralized network. Dapps owns a code called the smart contracts. Decentralized applications are strengthened and built using the Ethereum network. The Ethereum network helps dApps store smart contracts and information.
DApps can be defined as an application that is made on a system called the Decentralized network which possesses a rear-back code called the smart contracts. it uses the Ethereum blockchain to store smart contracts and information for its app logic. and this smart contract is a compilation of regulations or guidelines which stay on a chain and can be viewed and adhered to by all users.
It also possesses certain Features which I will elaborate on a few below.
They operate on blockchain
Dapp operates on a decentralized system network, which means no central body exercises full authority over the majority tokens.
Through the production of DApps tokens, dApps provide a certain degree of value to their contributing nodes.
Users can access dApps in exchange for tokens.
Miners are rewarded with tokens when after each successful contribution to the system.
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Decentralized applications (dApps) working system is based on the Ethereum blockchain which possesses a rear back code called the smart contract and this code is used to store information for its app logic. Smart Contracts work algorithmically in the blockchain network and are responsible for the combination and compilation of guidelines or regulations which stay on a chain and can be viewed and adhered to by all users.
Also, the Smart Contract is a self-performing contract that performs any of the binding conditions in the agreement between the seller and the buyer which is written into various lines of code, and it exists across a decentralized network. The smart contract also acts as a ledger.
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The image above shows the description of a smart contract and its functionality.
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Now we are going to look at the differences between dApps and other applications in the table below;
| Decentralized Application (dApps) | Other Apps |
|---|---|
| I. DApps are built on decentralized networks, and this gives users full control over all their activities and information on the dapps. | Other applications are less reliable because it works on a centralized network system that controls the application's activities and information. |
| II. DApps transactions cant be easily compromised because they are highly secured. | Other Applications are less secured compared to dApps which makes them hack targets. |
| III. DApps transaction speed is less efficient | Other applications' transaction speed is fast and more efficient. |
| IV. Dapps transaction fees or charges are high and required. | There is no transaction fee in other apps. |
| V. There are numerous financial mechanisms or models in dApps that make them not dependant on other sources of monetary value. | Other applications depend on other financial models. |
Advantages of Decentralized Applications (dApps)
Now let us look at the benefit of dApps below;
No central authority that has controls over a user's data, information,,, or activities.
In dApps, there are no central authorities like the government or companies with the full power or authority to manipulate or control a user's data. Users have control over their activities and can post, edit, like, or delete whatever they want.A single point of failure is less likely to happen.
In centralized websites, we see single points of failure sometimes. for instance, Twitter goes down, and activities halt as you can’t access your account, or when a bank’s website shuts down for rectification or maintenance and users' can’t do online transactions. In decentralized systems, if a node goes down, it does take down the entire system.Less censorship is guaranteed in dApps.
Most times, when the government doesn't want the internet to know what is going on, they shut down social media to deny their citizens access because they want to cover or hide what is going on from the internet. It is easy for the government to shut down access to some apps like Twitter and Facebook, just like the Nigerian government banned Twitter and denied its citizens access to the app. But on a decentralized system, it is very difficult for them to censor traffic.Network ownership alignment is achievable. This means that if users in a decentralized network contribute massively to the network, they are offered ownership or shares in the network.
Dapps are mostly open development platforms.
On dApps, anyone can build useful and important tools and products on the network, unlike the centralized systems which are mostly closed and limited.
Disadvantages of Decentralized Applications (dApps)
Now let us look at the disadvantages of dApps below;
It is not easy to update and Fix bugs.
when fixing bugs in DApps, it requires all peers in the system to update all the copies in the system and this makes it difficult.KYC is difficult.
The fact that DApps don’t have a single body in charge of KYC verification makes it hard to build Dapps, unlike centralized apps.Scaling is complex in DApps.
The scaling process in dapps is complex compared to the centralized apps.
Decentralized applications developers can promote their apps in a lot of ways so as to make the apps known to more people and gain more users and traffic which in turn generates more income.
Some ways developers can promote their apps are;
Website
Developers need online presence their applications because it shows how legitimate their apps are and it shows that their apps are the real-deal. This will attract more users to the applications.Social Media
Social media presence is a must. Developers can promote their apps by opening pages or account on social media platforms representing their apps or by paying these platforms for ads.Public Relations
Doing things like; Press release, hosting a launch party and inviting the media and necessary influencers,
Interviews, or guest blogging helps in promoting apps massively.Celebrity or Influencer endorsements
If apps developers connect with influencers or celebrities to help them promote their apps it really does a lot in the promotion progress because celebrities have a lot of fans so their fans will get to know about these apps and in hop on them.In-store Promotion
This is the traditional way of apps promotion. Developers can promote their apps by going into store to create awareness to customers in stores for their applications.Word of mouth
App developers can promote their apps using Word of mouth. Developers should take proper care and make that their apps are reliable. If their apps are unreliable, it can bring down their apps promotion and people wont be interested in getting their apps, so they should make sure worth talking about.
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There are a lot of things to pay attention to when using apps. The digital world is being infiltrated daily by hackers or cybercriminals that commit cybercrimes. Below are what we should pay attention to when using decentralized applications;
We should always pay attention to the security of the decentralized applications we are using because securing of our assets is important and necessary.
We should pay attention to the Network/transaction fees when performing transactions.
We should pay attention to the application, its functionality and structure to have necessary knowledge about what we are putting our funds into.
We should pay attention to the smart contract which act as a set of guidlines/regulations and a ledger in which transactions carried out are being recorded.
In conclusion, we always very attentive and vigilante towards the decentralized applications we are using to avoid us from becoming victims of financial loss.
To answer this question, I will use some steps and screenshots below;
Step - 1
Go to your browser and search the website dappradar.com
Screenshot from dappradar
Step - 2
After that, select and click Rankings at the top, as seen in the screenshot below.
Screenshot from dappradar
Step - 3
After clicking on ranking, this is how the next page will display, it is in this that i will select the one I will use which is Pancakeswap.
Screenshot from dappradar
Step - 4
After clicking on Pancakeswap, this page will appear with the features I will be listing in a table;
Screenshot from dappradar
| Pancakeswap features | Values |
|---|---|
| Ranking | #1 |
| Token name | CAKE |
| Token price | $13.24 |
| TVL | $7.04B |
| ATVL | $7.13B |
| Market cap | $7.68B |
| Cap/TVL | 1.09 |
Step - 5
After that, I will click on the pancakeswap dApp as shown below.
Screenshot from dappradar
Step - 6
Once the pancakeswap dapp opens, you will see a button in which you can click to connect a wallet and Trade now.
Screenshot from dappradar
Conclusion
A very big thank you to professor @wahyyunahrul for this impactfulful lecture on decentralized applications (Dapps). Now I know more about decentralized applications, their functionality, advantaged and disadvantages as well as how to use them.
Cc;
@wahyunahrul