DApps - Crypto Academy S5 - Homework Post for Task 8
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).
Hello Steemians/Crypto Academians
What are dApps?
Dapps are applications that run like every other application (Twitter, Vista, and PayPal) but are uniquely different in that they do not obey the server-client or client-server protocol. What this means is that these applications have no central server that relay information to client nodes or store client data on any database; or a central authority that regulates the activities that go on in the application. This is not to say no developers are maintaining the application but their interference is limited to maintenance and not handling client data or censoring activities in the application.
The nature of the language used to design these apps is what differentiates them from centralized apps.
They are open-source applications that run on a blockchain and are designed to run smart contracts, i.e transactions are executed automatically without a regulatory body. Dapps cuts across the areas of exchanges, finance app, marketplace, collectibles, and games, etc. They can be in the form of a desktop app, mobile app, or web extension. While some dapps may only be available in one of these forms, others are available in more forms than one.
Explain the working system of dApps?
Working system of Dapps
A dapp would be a neatly coded sham without the implementation of predefined rules of contract because remember, there is no central body anywhere processing the activities of the application. So, a Dapp is up and running because of smart contracts - pre-defined programmed contracts that play the role of a centralized authority. A smart contract eliminates the necessity for trust between transacting parties as it takes care of the trust.
A smart contract is executed and verified against a set of rules which is consensually agreed upon by the nodes (users) using a dapp. It follows that once the rule is met, the contract is executed and verified, but if not, it remains unexecuted. Like in traditional contracts, the three standing factors here are parties involved, rule of engagement, and subject of the contract i.e. the transaction per see.
Since there is no central server, communication in Dapp is limited to peer-to-peer interaction. Nodes communicate directly with one another, thus widening the network coverage of a node. Data, therefore, is simultaneously stored across the different nodes in the network. The nodes of the blockchain update and verify transactions/data, the result of which is immutable record-keeping. This is why blockchain is often referred to as an immutable ledger. Remember Dapps are not a blockchain but run atop blockchain so dapps run coherently with blockchain protocols.
Like blockchain, Dapps are transparent and the authenticity of data can be verified by the nodes of a network. These nodes rely on some form of consensus protocol to authenticate and verify data/transactions. Dapps are open source, meaning that their algorithm is open to be audited by experts, unlike closed-source centralized apps where their algorithms are off the eyes of the public.
Note: Dapps are not less secure by being open-sourced, rather having the chance to be audited, they are reportedly more secure than centralized apps.
What are the differences between dApps and other applications?
| Dapps | Centralized apps/Other apps |
|---|---|
| Dapps are decentralized i.e there is no central server or central authority serving the nodes on the network | There is a central server and central authority serving the nodes |
| Dapps are designed to run on a blockchain | Dapps are not designed to run on a blockchain |
| Dapps rely on smart contracts to validate transactions | Other apps rely on a central authority to validate transaction |
| Dapps are open-source, that is its algorithms are open to auditing and modification | Other dapps are closed-source, that is algorithms are not open to the public for auditing |
| Solidity, swift, and waves are the predominant languages used to develop a dapp | while centralized apps constitute more of java script, Html, CSS and so many other programs |
| Some of the example of dapps are Sustswap (DEX), Bittorent, Tor, Uniswap, and Justlend (Defi) | Some of the examples of other apps are Facebook, Twitter, Uber, Vista, and Paypal etc. |
Explain the advantages and disadvantages of dApps?
Advantages of Decentralized Applications
Resistant to central censorship
This is a feature as well as an advantage of dapps. Users can relate directly to other nodes without being subject to interference from a central authority. High middleman fees, delayed response, and bureaucratic processes are eliminated with dapps.
This is particularly very important in the area of Defi where distant parties don’t have to send money through mediums like Western union and banks that charge exorbitant fees for transactions, after which the transacting parties would have to wait for a prolonged period for transaction to be completed.
High sense of Ownership
With Dapps, a user has a relatively high sense of ownership of whatsoever assets are owned because their personal information including passwords is not held by anyone in a database or server. This way, the user feels less prone to sudden compromise or failure of a central body, thus giving one a high sense of ownership.
Transparent Record Keeping
The nature of record-keeping on dapps makes it almost impossible for any single node or group of nodes to alter the data in a network for fraudulent purposes. This is so because once a transaction or information is verified on a Dapp, it is simultaneously updated across all nodes on the network and thus cannot be easily altered.
Dapps serve as virtual labs
Most dapps have a virtual lab where developers can test out their works or audit the work of other developers. With testnet, developers have all the time to fix bugs on their dapps before releasing it to mainnet. The beauty of this is that they get to do this with subscribers who tend to be active on the dapp even before it is published.
Dapps are open source
The algorithm of dapps is open-source and thus open to checks and modifications from other developers. This gives dapps the chance to have stronger security and better features as these developers/professionals often offer modifications that aid the security of dapps.
The open-source nature of dapps has since encouraged the formation of a great community around dapp creation. These communities support dapp creation, whereby less experienced and even more experienced developers can benefit from the knowledge they offer.
Disadvantages of Dapps
Irreversible actions
Once an action or transaction is carried out in a dapp, it is irreversible, so if a user makes a mistake during a transaction, it cannot be reversed. This is because there is no regulatory body like banks that could reverse such action. That is why people ought to be very careful when using dapps as negligence results in irreparable loss.
Dapps can be unreliable
Though Dapps have a good number of advantages, they are not short of anomalies. There have been cases where users tried to perform a transaction on a dapp but the transaction failed probably because of network issues or some requirement not met by the user but then the fees incurred on the transaction are not refunded.
This is an occurrence with some poorly developed or fraudulent dapps, therefore it is important to check out reviews on a dapp before using it.
High energy and fees
Dapps consume a lot of energy and lots of fees too. People are carried away by the usefulness of dapps until is time to approve a transaction and then they see very scary fees (emoji). For example, some NFT dapps (like Opensea) on the Ethereum blockchain require one to pay as much as 50% of NFT price in fees when displaying their art for the first time on the blockchain.
Dapps are less Popular
Decentralized applications are not as popular and patronized as centralized apps. This makes them prone to certain flaws like liquidity. For instance, in the area of Decentralized Exchange (DEX), more users use centralized exchanges like Binance and Coinbase. This impacts the liquidity available to users on decentralized exchanges like Pancakeswap and Uniswap.
Difficulty in Modification
It is pretty difficult for developers to fix bugs or modify their codes after it has been released on the mainnet. That’s why dapps must go through sufficient testing before being released as any future problem may prove difficult to change.
The Testnet, however, may not be sustainable especially when it comes to handling numerical increase over time because it is hypothetically true that dapp developers test out their application on testnet with relatively fewer users.
Scalability
Scalability is the number of transactions a network can process per second. To be efficiently scalable, dapps have to sacrifice other useful features. So most times, it is either a dapp is well scalable but less efficient in other areas like the user interface or it is less scalable and efficient in these other areas as the case may be. Centralized applications have the upper hand with scalability when compared to Dapps.
How can dApps developers promote their apps?
As a developer, these are some of the ways to promote a dapp:
- Donations
- Community Building
- Advertisement
- Blockchain Preference
- Incentivization
- Partnership
Donations
At the initial stage, dapp-created tokens can be issued out to the public in exchange for financial support that will be used to develop the dapp and further widen the scope of its reachability and usefulness.
Community Building
As a developer or set of developers, it is important if not necessary to have a community around your dapp where information is disseminated and ideas/feedbacks are addressed. The community should comprise both users and non-users. The idea is that value should be dished out in the community to encourage users to continue using the dapp and non-users to jump on the train. The community is meant to grow numerically from advertisements and should have extensions on various social media platforms.
Advertisement
Advertisement is key if the users of a dapp must grow numerically. Community building is part of advertisement too but it is more value-oriented than advertising. Now a developer doesn’t get users flocking to use their dapp just because it is an excellent dapp; there is a need to create awareness around the dapp.
A developer or set of developers can take advantage of social platforms with a large member base like Steemit, Telegram, Discord, Reddit, YouTube, Medium, and Twitter to advertise their product. Some of these mediums are more reliable than others when advertising a dapp.
Crypto forums are another excellent way to create awareness on a dapp. Examples of such crypto forums are:
The last and most reliable way to advertise a dapp is to submit the link to dapp directories such as:
Incentivization
Members of the public could be incentivized to use a dapp if they are offered free tokens or some form of bonus for using a dapp. This would see more people get to use a dapp across time. A dapp developer could also create a similar dapp to one already existent and trending, and then reduce the transaction fees in comparison with the previous one.
Blockchain Preference
The choice of blockchain is an important consideration a developer should put in sight when deciding on target users and investors. Some blockchains are more remarkable for driving a particular kind of dapps than others. For instance, when it comes to NFT dapps, Ethereum seems to be the leading blockchain on this one.
Tron, a blockchain not as notable as Ethereum happens to have more scalable dapps than can be found in the Ethereum blockchain. The simple idea here is that a dapp developer must consider the blockchain that would more efficiently drive the kind of dapp they bring to the table.
Partnership
A dapp developer should strive to make partnerships with the right institutions as this can heighten the awareness and usefulness of a dapp. Steem and Tron integration continues to be a very beneficial partnership to the users of steemit and has also increased the popularity and usefulness of the steem blockchain.
What should we pay attention to when using dApps?
Some of the things to look out for when using dapps:
- Transaction fees
- Online review
- Ranking
- volume
- Blockchain
- Users
- Historical activity
Transaction fees
Before using a dapp, probably because of the hype, popularity, or usefulness of it, the user must understand the transaction fees involved in using the dapp. For example, you can hear people talk about minting NFTs on Opensea – Ethereum minting dapp for free. What a user might not know is that, yes, they are permitted to create a free NFT on the dapp but they actually have to pay a high amount in transaction fees to publish their work. Now the user can choose to mint their work on solsea – Solana minting dapp which is a less costly dapp.
Online Review
One of the best ways to avoid unnecessary loss and unforeseen circumstances is by checking out reviews of a dapp on sites like dapp.review or dapp.com or other related sites.
Ranking
Ranking information provided by sites like dappraddar.com is very useful when deciding a dapp to use.
Volume
It is good to check out the volume of a dapp on sites like dappradar.com. It gives an individual insight into how well a dapp is used. Logically, users won’t be flocking to use a sham of a dapp and thus this information is useful in helping users determine a good dapp and avoid the uncertainties associated with low liquidity or less popular apps.
Blockchain
It is important to know the developers behind a dapp and the blockchain on which a dapp is being run. Some blockchains are more renowned for driving an area of dapp than others.
Check the URL and Lock icon on the search bar
There are so many cloned dapps out there that are nothing but phishing dapps. To avoid such dapps, a user should double-check the URL to ensure that it is not a phishing dapp and also check out if there is a lock icon before the search bar. This helps too!
Historical Activity
The historical chart of a dapp can and should be looked out for when gathering information on a dapp.
How do we find the information of a DApp that we want to know? Provide the steps (Screenshot required).
- Step 1
Navigate to https://dappradar.com/
Below is the first page. I wish to check out the no 1 ranking Defi on the Tron blockchain, To do this, I click on ranking on the top of the page.
- Step 2
After clicking on ranking, I click Tron and then Defi
- Step 3
From the image below, Justlend is the no 1 Defi dapp on the Tron blockchain. Now I can get the information I want based on a time frame. I can do this either by observing the information to the right of Justlend or clicking on Justlend. In the image below, we can see the No of Transactions, Volume, Users, Balance, and Historical Activity on Justlend within the last 7 days as of the time of writing. To go further to use the Dapp, I Click Open Dapp as identified in the image.
- Step 4
After that, I am required to connect my wallet to https://justlend.org/
- Step 5
I have successfully connected my wallet to https://justlend.org/ by clicking on Connect Wallet and approving the connection on my Tronlink wallet. And here is the view below.
- Step 6
Now, I can decide to borrow or supply the assets listed on https://justlend.org/. By supplying or borrowing, I am entitled to receive or pay some amount of APY over time depending on the amount of asset involved.
Dapps foster very much the idea of a decentralized internet and it has continued to develop since the sudden rise to prominence of cryptocurrency blockchains. Though bitcoin can be said to be the first decentralized blockchain, Ethereum houses the greater majority of dapps and so talks about a future void of centralized applications.
Dapps, however, have grown to be applied not just to cryptocurrency/finance but to other areas of life as real estate, legal field, and transport, etc. With dapps pulling through and doing quite well with eliminating the middleman, there is increased acceptance and usage of dapps by both crypto enthusiasts and investors.
Thank you for reading.
Courtesy: Prof @wahyunahrul
Hello @dilchamo and @steemcurator02, this post was not curated because I had not powered up to #club5050 standards. I have now powered up and desire that the post be curated so I can yet power up for future classes, thank you.
YOU ARE POWERING DOWN SO YOU ARE NOT ELIGIBLE FOR VOTES FROM THE STEEMIT CRYPTO ACADEMY
cc @dilchamo
Alright
Alright
You have to power up 150 SP and also follow club5050 for the past month. Still it shows only 90 + SP for the whole month.
Hello @dilchamo, it depends on how you do check it. My Sp progressed from 135 to 145 to 151 and then recently 161 after I powered up 10 steem. You have to check it by counting back one month from the previous day
The image clearly shows that from Nov 30 - Dec 31, I had powered up 161 steem. I had to take my time to follow up the progression of my SP and it therefore is not logical to say that my sp is 161 within the date of Nov30 - Dec 31 but 90+ between Dec 1 - Jan 1. Please look into it or you can ask someone else who may have better understanding on how the app works. Thank you.
It depends on how you are checking it. It couldn't have moved from 135 to 145 to 151 and then 90+. If you check it rightly, you get 161.
You should maintain the SP amount till you get curated. That means always check from today and a month back from today. Curation depends on how you maintain too. If you have that qualification you will be definitely curated. So don't worry.
This is really frustrating but thank you anyways.