Steemit Crypto Academy Season 5 Beginners' course - Task 8: Decentralized Applications (dApps)
Decentralized Apps (dApps)
We all must have often used various applications on the devices that we use every day, both on smartphones and other devices such as laptops, tablets, etc. However, there are things you should know that all these applications are applications that have a centralized system where all of its performance is held by the developer of the application, this also includes user data stored in the application, we often call it Centralized Apps. We take the example of one of the socially based centralized applications which is called Twitter.
When we use the application for various purposes such as posting tweets along with photos or videos, re-tweeting, liking, and sharing, then our activities will be recorded by the Twitter system and all data. the data will be stored by Twitter, and the Twitter manager can easily access our data to delete or change all the data according to their wishes. This causes us as users to no longer have privacy over our own data.
But, did you know that there is a type of application that has a system that is inversely proportional to the applications that we often use today, this application is often referred to as the application of the future because of its unique and very futuristic system, this application is called "Decentralized Apps".
Decentralized Applications or often known as dApps is a result of the development of Blockchain technology. As we know that blockchain is a technology that adheres to a decentralized system that will give everyone the freedom to carry out any transactions without anything being covered up at all. This is what dApps use, namely using a peer-to-peer system, which means that all users play an active role in running the application so that the authority or control of an application is not held by an institution.
In addition to running on a peer-to-peer system, dApps also use an open-source system, which means that the application code recorded on the system can be accessed by anyone so that no data can be manipulated because each user can access all data recorded on the system.
The thing that makes dApps very special is that they cannot be closed in any way, if a dApp has joined a Blockchain system then the dApps will not disappear for any reason. This is because dApps use smart contracts or often referred to as ledgers that record all transactions on the dApps automatically digitally without the need for human assistance. Unlike Centralized Apps, which still have to be controlled by humans, they still need officers such as Customer Service, Tellers, Employees, etc. With no need for a third party to control all transactions on dApps, the speed and required transaction fees will be faster and cheaper.
If we look at the contract system that is usually used today, when we are going to make a transaction with other people, there will be several stages that we have to go through. To make it easier to understand I'll take an example. Someday I want to make a transaction with Professor Sapwood, I want to buy an image template made by Professor Sapwood and I want to buy it so I can use it in my presentation. So that I can pay for the template then I have to send some money from my account to a sapwood account where we are both in different countries, I'm in Indonesia while sapwood is in India.
So that I can make the transaction, I have to deposit some money into my account and make a request to the bank that I want to send some money to sapwood account that has a different bank account. To do this transaction, I will be charged a large additional fee because I will send money to a different country and type of bank, then it will take a long time because the bank has to confirm with the bank where Sapwood made the bank account.
From this illustration, we can see how complicated conventional contracts are that we often use today because we have to use the services of a third-party, but that started to change when smart contracts were introduced. By using Blockchain technology which is an online-based technology, it makes all transactions much faster and more cost-effective.
If we make transactions using Smart Contracts, the process we do is only send our money using a dApps that runs on a blockchain, then the transaction process will be validated using the Blockchain system and after the transaction is validated the transaction will be recorded on the smart the contract and the money sent will go directly to the intended wallet and this whole process only takes a few minutes.
Relationship Between dApps and Cryptocurrencies
As I discussed earlier that dApps run because there are transactions that run between two or more parties in a blockchain network or what is often referred to as peer-to-peer. However, each transaction process will require transaction fees, these costs arise because dApps run on thousands of nodes or devices spread throughout the world, these costs vary depending on the type of dApps used.
This is where the relationship between cryptocurrencies and dApps occurs, to pay for these fees, users must use cryptocurrencies that are compatible with the blockchain network used by the dApps. For example, if we use a dApps that is on the Ethereum network so that the transactions we do on the dApps can be carried out, we have to pay transaction fees using Ethereum coins.
However, the payment of these fees can vary, almost all dApps that have been created will issue their own token which functions as a means of payment so that users have other options to pay the required transaction fees.
With the emergence of tokens from each of these dApps, it will also open an investment avenue for investors who are interested in the dApps project. If the token issued by a dApp is often used by many people, the price of the token will automatically increase, so that investors who have purchased the token at their initial price offer (ICO or IDO) will benefit from the results of their investment.
Characteristics of dApps
There are several characteristics that make dApps far superior to other applications, including:
Actually, I have discussed this in the previous discussion, but indeed this is what makes dApps a unique application. By using a decentralized system, it can be interpreted that the dApps is an independent application that is not owned and closed by anyone.
The thing that characterizes the next dApps is the level of security that is more guaranteed, when a dApps has joined a blockchain network then automatically the level of security on the dApps is equivalent to the security of the blockchain where it belongs. I'm sure we all know how secure the blockchain network system is.
Has the Same Function
Almost all dApps have similar functions, even though they are on different blockchain networks, all of these dApps will be able to connect with each other.
Resistant to Bugs
The next thing is resistance to bugs that occur in the system. If a contract has problems reaching consensus when making transactions, then the problem will not propagate to the general network system. This is because all existing data and nodes are distributed to all devices in the world so that it will not affect other devices.
Types of Decentralized Apps (dApps)
dApps can be separated by type, so far there are 3 types of dApps that have been created, including:
1. Type I
The first type is dApps that run on the financial system, this type of dApps will use the cryptocurrency they created to be used as a means of payment to make transactions. This type of dApps also has its own blockchain system so that the naming of the dApps follows the name of the blockchain itself. Examples of this type are Bitcoin, Ethereum, Cardano, etc.
2. Type II
The 2nd type are dApps that run on the blockchain of type 1 dApps. This type of dApps will use the tokens they issue as a transaction tool, and these dApps are usually used for financial purposes such as an ICO which is a fundraising process for a blockchain project, in the process The ICO that will be offered by the project is a token that they have made with a value that is still very cheap in the hope that the value of the token will increase along with the development of the project.
3. Type III
This last type is the type of dApps that is most often used today, many dApps developers are interested in creating applications using this type because this type is the result of the translation of dApps type 1 and type 2. finance and finance, in this type the developers start to create applications that will be used for various things that will help our lives in various aspects such as social media, personal data storage, games, etc.
How to View dApps Ranking and Explore dApps
If you want to check the list of dApps that have been made so far or you want to see the ranking of dApps then you just have to check it on a website that provides a dApps monitoring feature called DappRadar.
1. See the Latest dApps Ranking
The first step is to visit the website of DappRadar, then you will be shown the home page of the website as shown in the image below. To see the latest ranking of all dApps, you can click the "Rankings" option at the top of the page.
After that, you will be taken to another page that shows the latest ranking of all dApps. At the time this article was written, the current top 3 ranking dApps are as follows:
- CryptoBlades as Games category which is part of BSC.
- PancakeSwap as Defi category which is part of BSC.
- Allen Worlds as Games category which is part of WAX.
After that I scrolled down on the page, then I found one of the dApps I was looking for, namely JustSwap which turned out to be in the top 50 dApps ranking. To see the details of JustSwap then we have to click on the dApps icon.
Then we will be taken to the detail page of the dApps we selected. On this page, we will be shown the latest statistics from our selected dApp such as the number of users, transactions, volume, balance, and we will also be given a graph of the activity that has occurred. To visit the page of the DApp we just click the button "Open Dapp."
2. Connecting Wallet with DApp (JustSwap)
After we click the "Open Dapp" button, then we will be taken to the official page of the DApp, this time I will show you a DApp that is included in the Exchange category that runs on the Tron Blockchain, this DApp is called "JustSwap".
On the start page that looks like the image below, you will be shown one of the features which is the main feature offered by this DApp, namely exchanging cryptocurrencies with other cryptocurrencies. There are many tokens that you can exchange on this DApp such as TRX, BTC, ETH, BTT, SUN, USDT, etc. You can exchange all these cryptocurrencies easily.
To use this dApp, you must have a Tron Wallet and you must also install the Tron Link Wallet add-on on your browser. If you already have both then all you have to do is connect your wallet with JustSwap. The trick is to click the "Connect to Wallet" button at the top left of the page.
After that, a pop-up will appear to connect your wallet, click on the button in the red box as shown below.
Then there will be another pop-up that will ask you to fill in your wallet password.
Your wallet is automatically connected to JustSwap.
3. Exploring JustSwap Features
As we have seen on the previous DappRadar website that JustSwap is a dApp that belongs to the "Exchange" category, which means JustSwap acts as a cryptocurrency exchange. However, apart from the exchange, JustSwap also has several other features, including:
- LP Pools.
- SUN Swap.
"Swap" feature is the main feature that we discussed earlier where we can exchange our cryptocurrency into other cryptocurrencies. So next I will discuss 3 other features.
LP Pools Features
JustSwap has a feature that allows users to mine using LP Tokens. There are 9 types of LP Pool offered by JustSwap including USDT-TRX LP, USDJ-TRX LP, TUSD-TRX LP, USDC-TRX LP, WBTT-TRX LP, NFT-TRX LP, BTC-TRX LP, ETH -TRX LP, WIN-TRX LP. Each LP Pool has a different APY percentage, users can choose the LP Pool according to their wishes.
In this feature, JustSwap offers a tool that can help users easily find transactions that have been made by an address.
SUN Swap Feature
JustSwap users can redo SUNOLD tokens into SUN tokens by using this feature. As we know that SUN has redominated SUN tokens with a ratio of 1:1000. Which means if you already have 1 SUNOLD token then you can exchange it for a new SUN token with the amount of 1000 SUN.
The rapid development of technology is not something that we can fight, as time goes by, things will continue to change. Likewise, the applications that we often use on smartphones and other devices, these applications will continue to grow and one of the results of these developments is the transition from Centralized Apps held by a centralized authority to Decentralized Apps that uphold freedom and transparency in conducting transactions.
That's all from me, thank you for reading my article to the end. If there is an error in my writing please tell me in the comments column.
1). 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).
2). Look for 2 similar dApps and do a detailed fundamental analysis and compare the two dApps and explain the results of your analysis. (Screenshots required).
3). If you were a dApps developer, what kind of dApps would you like to create? Give reasons why you want to create these dApps. What are the steps you will take to make your dApps grow? Make a Roadmap for your dApp.
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