What are Decentralized Applications

Real-World Use Cases for dApps

👉 Current dApps function as a bridge between Web 2.0 platforms and Web3, the future decentralized web. In many situations, this implies that dApps are accessible through normal web browsers such as Google Chrome or Mozilla Firefox but connect with blockchain networks via smart contracts.

👉 In other words, the back end of dApps is a decentralized database instead of a centralized server, even though the front end of dApps is familiar.

👉 There are fewer dApps than conventional apps due to the recent adoption of blockchain technology. However, continued innovation has started diversifying the ecosystem, with many of the most popular dApps represented in the categories below.

Cryptocurrency or Digital Wallets

👉 Within the decentralized environment, crypto wallet dApps are essential. Cryptocurrency transactions need the use of either custodial or non-custodial wallets.

👉 Custodial wallets, such as those seen on centralized cryptocurrency exchanges (CEXs), are custodial because the platform has your private keys, the equivalent of an account PIN.

👉 This means that controlling non-custodial wallets guarantees that no one else has access to your private keys.

Crypto Exchanges

👉 Decentralized exchanges (DEXs) are often accessed using a web browser. After accessing the DEX web address (URL), you will be presented with an interface for connecting a cryptocurrency wallet.

👉 Once setup is complete, Nigerians could begin interacting with the DEX DApp, taking part in supporting features like liquidity pools, lotteries, and more.

Social Media

👉 Like social media platforms such as Facebook and Instagram, social media dApps such as Steemit promote online communication.

👉 In contrast, social media dApps reverse the flow of value and reward you for engaging in the network instead of retaining and selling your data.

Gaming

👉 The gaming industry is one of the most active users of blockchain technology because of the rise of decentralized gaming.

👉 Popular game dApps such as Axie Infinity, Splinterland, and My DeFi Pet use non-fungible tokens (NFTs) to guarantee that players preserve the value they make in the metaverse.

Voting and Governance

👉 Voting is often a difficult procedure. It often includes many validation stages, some of which are unavailable to persons without adequate accommodation or those with other challenges. Not to mention tampering and other illegal activities.

👉 A voting DApp can make the process accessible to anyone using smart contracts. First, the community may vote on a list of suggestions. Then, they could establish a period, say 24 hours, during which users can “stake” their vote with tokens.

👉 This expands participation to everyone, enabling anybody to vote anonymously.

👉 A decentralized network stores votes, making them indelible and unalterable. In addition, smart contracts may reward voters with a relevant token for their participation, encouraging more individuals than ever before to vote.

Finance

👉 Moneylenders and borrowers may do business via dApps. With banks, lenders are paid interest depending on how much they save.

👉 The more a person’s savings, the greater the bank’s ability to lend, and the greater the interest earnings for both parties.

👉 However, the bank, which operates as a centralized institution, takes a larger percentage than lenders want for just providing a place to hold cash.

👉 On a DApp, lenders get 100 percent of their interest since there is no intermediary to pay. In addition, users have more control over loans while earning tokens from the network they choose.

👉 As for borrowers, they have more control over interest rates and payment conditions. For example, several platforms let borrowers pay interest over months or even years if they reach a minimum payment level.

👉 Additionally, the borrower may negotiate rates with the lender, assuring an appropriate choice for all sides.

👉 Ultimately, owing to the technology of smart contracts, the revenues may be received quickly. Subsequently, there is no need to engage attorneys and other third parties, which would lengthen and increase the expense of the confirmation procedure for both sides.

Fundraising and Advertising

👉 Numerous consumers use ad blockers when surfing the Internet. This is certainly a problem for websites attempting to earn cash.

👉 However, it is reasonable given that advertisements have grown annoying in many ways. A browser DApp can resolve this issue.

👉 While using a browser-integrated ad and tracker blocker, users may earn cryptocurrency while surfing the web. Now, when consumers discover artists and websites they want to support, they have the option to enable donations.

👉 This implies that the longer a person spends on a site, the more money they pay over a certain time. Therefore, in the long term, users might benefit more by enabling advertisements on select websites.

👉 Here, confidentiality is the name of the game. Users decide who may monitor them, safeguarding their privacy while generating revenue for companies that require it. A win-win scenario exists.