Steemit Crypto Academy Season 4 Beginners' course - Task 8: Decentralized Applications (dApps)
Hello fellow steemians, it's been another wonderful week for me and a great pleasure to attend the lecture 10 of the fixed beginner's course organized by Professor @wahyunahrul. All thanks goes to the Almighty Allah and also a big thanks goes to Professor @wahyunahrul who took his time and make sure to digest this lecture to our understanding. This lecture was really helpful as I learned a lot from it. Below is the questions I have decided to answer from the questions given.
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).
Below is my homework submission post.
The full meaning of DApp is decentralized application and this applications were launched to supersede and replace the centralized system. In a central system, there is a central authority which serves as a server but in decentralized system, central authority is eliminated and does not exist. In decentralized systems, users interact directly with each other without the involvement and interference of a third party unlike centralized system where there is always an involvement of a third party. This basically means that, in decentralized system there is no middle man when carrying out transactions.
The decentralized system is very transparent and inflexible. Transactions history and data by users can be seen clearly on this system which makes users to have more trust in it. The data stored on the system is unchangeable and cannot be tempered with by anyone. As I already said, transactions on this system do not involve a third party and users are free to carry out transactions at anytime via Peer-2-peeer.
Decentralized systems has no owners or holders but centralized systems are either own by a person or a group of people. The centralized system always have a board of directors and managers who run the system the way they want without anyone questioning them. They set their own rules and run the the system with respect to their rules and regulations. The owners and runners of this system can either ban or block a user from accessing the platform if the user goes against their rules and standards. When there is violence between a user and the system, they can decide to block the user again. But in decentralized system, users are given the freedom to run their accounts and also express themselves without restrictions and boundaries. So in the decentralized system, users are not banned from the platform unless in a very critical situation.
Transactions on the decentralized system is very fast, secure and reliable because there is no involvement of a middle man or third party. Also, charges payed when performing transactions are usually very small on decentralized system. This makes it the best platform to do transactions. Decentralized applications have bring a lot of positive changes and advancement to the world.
Decentralized systems are build and establish on a blockchain and this blockchain cannot be hacked. The two most popular blockchains are the Bitcoin blockchain and the Ethereum blockchain but most DApps are build on the Ethereum blockchain. The reason being that, the Ethereum blockchain allows the developers of the DApps to build and improve the applications in a productive and healthful atmosphere.
The introduction of the decentralized applications has brought a lot of positive changes to the world and also save the people from the stress they used to go through in the centralized applications. Transactions on the centralized system is time consuming, very slow and also very costly. The introduction of DApps has solved all this problems users go through in the centralized system. Decentralized system has made it possible for users to do transaction directly with each other without any interference and involvement of a third party. There is nothing like middle man when performing transaction on the decentralized system.
The decentralized system has delegate most of it's powers to the users on the platform. The system gives them the power to contribute and add their ideas in order to make changes to the platform to make it function well and properly. Because no one owns the system, it allows users to freely express and carry out activities on the system without having a fear of being blocked or banned.
After performing a transaction on the decentralized system, it gets validated by the user nodes, the data is then stored on the the blockchain network. This stored data is transparent and clear by all the user nodes. After validation and storage of the data, it cannot be alter or change on the blockchain.
Also, users are given assurance that their data and information on the system cannot be hacked by anyone because the system is immutable. On carrying out transactions, you are assured of the best because the platform is very fast, safe, secure and reliable. Also, the cost involve in transacting in decentralized systems are very low as compared to centralized systems.
The decentralized system is the best and safest system because there is no central authority and it is also open to everyone who want to join.
1). DApps are immutable: The decentralized application and system is immutable in a way that the information and data stored on this applications cannot be altered or changed by anyone. But with other applications,data stored on them can be altered and changed by the central authority or the owners of the applications. This means that other applications are not immutable as DApps.
2). DApps are very transparent: The decentralized applications are build in such a way that all the information and data stored by users on them are very transparent and accessible to each and everyone on the system. But with other applications, data stored on them are not transparent because the system hids it from the users. This means that data stored on them are neither visible nor accessible to the users on the network.
3). Transactions are untraceable on DApps: Transactions preformed on DApps cannot be traced by anyone. That's why it is advisable to be cautious and careful when transferring funds from one address to the other because the transaction cannot be traced if you mistakenly send your funds to a wrong address. Wrong transactions on other applications can be reversed by tracking the transaction and reversing your money or funds back to you.
4). There is no third-party or middleman in DApps: Decentralized system do not have owners, meaning that there is no authority from somewhere commanding users how to use their funds. Other applications such as the centralized system has owners and this owners manage the system according to how they want it.
5). Registration process is easy on DApps: Registration on decentralized applications are very easy as they incur no cost. You can register yourself by simply following the registration process and within some minutes you will be done. There is no stress at all in registering on decentralized systems but in other applications, registration process is very hard and difficult as you need to provide certain documents before you can be registered.
6). DApps are very fast: Decentralized applications are very fast than other applications when performing transactions on it. A user can perform a number of transactions within some short period of time without stress. Users are given the freedom and power to send funds to different address without any hindrance from the third parties. But with other applications, transactions are very slow and time consuming as you need more time to complete the transaction process.
7). DApps are very secured: Accounts on decentralized systems are more secured and safer than applications. This is because, nobody can have access to your account asong as you keep your keys safe and away from any other person. So this makes users to feel more safer on decentralized systems than other applications. Accounts on other applications can be accessed by the third party as they have access to your account logins and keys.
1). Decentralized applications and systems are more safer and secured because the data and information of users on the system cannot be changed or altered by anyone.
2). Data and information stored on decentralized systems can be access by anyone without restraint. This makes the system very clear and transparent.
3). Most powers are delegated to users on this system which is them to have total custody and control over their personal accounts.
4). Data stored on decentralized systems are immutable and cannot be change or tempered with by anyone. The data and information on the system cannot be hacked because they are build on the blockchain technology..
5). Transactions performed on decentralized systems incurs low cost and charges. You can send a huge amount of money to other address with very low transaction fee.
6). Registration on decentralized applications are very easy as they incur no cost. You can register yourself by simply following the registration process and within some minutes you will be done
7). Another advantage of decentralized systems is that, any user can send or receive money at any time around the world. You can send and receive money without challenges and interference.
1). Money sent to wrong addresses on decentralized systems cannot be retrieve. This is because there is no central server or authority to do that. That is why it is most advisable to be cautious and extra careful when transacting on decentralized systems.
2). Understanding the decentralized system as a new user or comer is somehow difficult because of how complex the system can be.
3). Passwords, keys or logins to decentralized systems cannot be recovered once it gets missing. This basically means that, if you lose your password, then you have equally lose your account and assets in it.
4). Some people use decentralized systems to commit crimes by sending funds to bad people and fraudsters. Because the transaction cannot be tracked, no one will be able to know what is happening.
5). Transactions on decentralized systems cannot be reversed or retrieved. So if you make a mistake and send your money to a wrong address, your money can not reversed back.
6). Creating and developing of decentralized applications is very costly and expensive. This is because of the complexity of the system and it requires a lot of equipment to run them.
There are a quite number of ways DApps developers follow to promote their applications. Below are some of the ways they promote their DApps.
1). Developers of decentralized applications promote their projects on social media. One of the best channels DApps developers use in promoting their applications is by the use of social media. Social media is very broad and over billions of people are on social media. This makes it one of the influential platforms in this our generation. Almost everyone are now on social media, so promoting businesses and applications on this platforms is the best. Because of the large number of users on social media, promoting our works on them is undoubtedly the best.
2). DApp developers also use websites to launch and promote and their application. A lot of people usually used the available websites to find out important and urgent informations. So promoting decentralized applications on this websites will be made available to people which helps in promoting them.
3). Another effective way to promote our decentralized applications is by organizing a get together and invite relevant and influential people to help in disseminating the information. As a DApp developer, you will one way or the other need people to talk about the good things about the project. So organizing a party with this people will really help in promoting the applications.
4). We can also promote DApps through airdrops. Airdop promotion is very effective and productive as it helps in attracting the attention of users towards the DApps.
It is important for users especially new users to take note of certain things when using decentralized applications. As I already stated, this system is somehow complex and it needs a quite time to understand how to use it. We all can attest to the fact that the growth of cryptocurrencies has been on the rise after the successfulness of Bitcoin. It is on a rise because, there is a lot of profit in investing and trading with cryptocurrencies. Although there is profit in this business, you need to take certain factors into consideration when investing and trading with cryptocurrencies on decentralized systems.
It is important to no that, before you invest in a cryptocurrency you need to do a background check and research on it to see if it will be worthwhile and profitable in investing in that coin. The research and checks gives you the data about the coin market supply, the prize of the coin, the possible future market, the trend of the coin in the market, it's volume and performance when compared to other coins. This helps the trader or investor to make the right and best trading decisions in order to avoid loss.
Just like making a research on the cryptocurrency, you also need to do a technical analysis on the cryptocurrency before investing. This analysis tells you or confirms whether investing in the coin will be good or not. This analysis also helps the trader to know how the price of the asset rises and falls as well as the future market price in the long run.
We all know that decentralized systems are transparent where we can assess information and data with no restrictions. But if you realized that a decentralized application is not transparent then you should try as much as possible to avoid it because it might not be legit.
Also, a decentralized systems which is designed in a way that users are given referral codes to share with people to use and join the system, then it will be a great risk to invest in those decentralized applications. There are no referral codes on DApps.
We also know that DApps mostly resides on exchanges such as Binance, Poloniex, Kucoin etc. So if it happens that a DApp is not on any exchange, then it will be a risk in investing in those cryptocurrencies. DApps should be on exchanges where trade occurs.
First and foremost, we need to visit the Dappradar platform in order to find information of any DApp of our choice.
After clicking on the link provided above, you will see the homepage of the platform shown as the picture below.
- The next thing is to click on the feature I have highlighted below.
- A drop down of features pop up, you then click on the ranking feature.
- After clicking on ranking, all the decentralized applications will be shown to you as below. So you now decide to choose the DApp you will like to analyze on.
- I have decided to analyze and find information on the Uniswap DApp, so I will just click on it as shown below.
- The name of the token on the Dappradar platform is UNI and it has a current market price of $24.95.
- The UNI token had a Total Volume of $8.23B and a marketcap of $24.95B. Below is a screenshot showing the volume and marketcap.
The introduction of decentralized applications into the world has bring a lot of positive impacts on our lives. With decentralized systems, transactions are now made simple, faster and easy than what we used to go through in the centralized system. The sharp growth and adoption of the decentralized system within this short time is a prove that the system is the best as it is not corrupt and cannot be change or back by anyone.
Thank you.
Cc: @dilchamo