What are dApps? 12 Decentralized Application Examples

What are dApps: You know how your phone can actually have a bunch of different applications.

There’s Facebook and Instagram and Gmail and youtube they’re basically all applications that run code that was created by the company so that you could interact with their company.

Well a dapp or a decentralized application is very similar in how it works except instead of reporting back to Facebook

servers or ticktok servers this app reports back to the blockchain you’re simply interacting with the blockchain through the application.

What a dapp or decentralized application ?

Dapp application is how they work and why they might hold the key to the future of the technology first we’re going to go over some of the benefits of dapps and then we’re going to cover the different types of them including a bunch of specific examples.

The first thing you need to know is that dapps can only be built on smart contract networks which means a blockchain like bitcoin cannot utilize dapps bitcoin was designed to only allow the sending of its native coin.

Ethereum however can utilize something called smart contracts. which is code that makes up a program so that it can be run to do more complicated things you should check out our article on smart contracts So that you’re not confused throughout this article but in short they allow two people to make an agreement written in code so that they don’t have to trust a third party to follow through they can simply just trust the code.

Another benefit is that since the code is out there to be run it is what we call open source which means anyone can look at the code this allows a lot more trust to be given to the application.

We can’t really look at how Facebook recommends us, friends, to interact with or how google knows what we ate for dinner.

But with any smart contract, we can actually look at the code and see how it works this is a big benefit over centralized applications.

Next dapps are also censorship-resistant and this is a fancy way of saying they don’t have to answer to governments or corporations or even specific people if the smart contract is coded to do something and it’s triggered nobody can stop it naturally this is good and bad but it’s really important for financial applications this way nobody can control your money.

In history governments that have done a lot of bad things have had control of their citizen’s money there have also been cases where Facebook or Twitter can actually ban or censor certain people based on their views or opinions a decentralized application will not allow this unless it’s written to another big benefit of decentralized applications is that they will essentially never go offline now there’s been times where I’ve actually seen facebook or even youtube down maybe their servers have a bug or there’s an outage or they simply just do not work it’s usually for a very short period of time because there’s a lot of money involved but technically the government could come in and just shut them down.

Since dapps run on the blockchain they will actually never go down because they are run by hundreds of thousands of computers all around the world it would be infeasible to turn them all off if not it’s impossible.

So now that you know what makes dapps so cool.

let’s get into some examples of them

Financial Dapps

There are actually many decentralized applications that provide a way for people to invest in something called decentralized finance

decentralized finance or defy is a new monetary protocol that uses blockchain to allow investors to do new things and even some old things with their money with a ton of new benefits

How Dapps may Use your Money

Borrowing and lending so AAVE is a platform that allows a user to deposit their ethereum or matic tokens to certain smart contracts whenever you deposit these coins and tokens you can actually receive an interest rate on them allowing you to basically invest with them. AAVE also lets you borrow tokens basically if you have enough collateral already deposited so without going too much in-depth this allows you to borrow at different interest rates and even create specific margin positions if you want to learn more about ave we’ve actually created a specific article over this topic.

Providing liquidity so providing liquidity is actually a very complicated idea but we’re going to make it simple in short there is not much money in the tokens out there to trade so investors can come along buy these tokens and then invest them in what is called a liquidity pool which allows other people to trade back and forth using their tokens. the traders pay a small fee that allows the investors to earn a return for their investment it’s a win-win situation.

Exchanges now as I mentioned allowing traders to find a way to actually buy and sell their tokens is one of the issues in the decentralized finance world exchanges are decentralized applications that allow traders to take some of their tokens and trade them for another token usually with really low fees almost instantaneously and without needing any background checks or identification verification that was a mouthful but what it means is that you can sell a million dollars of ethereum ETH without anyone blinking an eye or asking any questions by the way these exchanges are actually called dexes which stands for decentralized exchange.

Game DApps

Now of course there’s going to be games

I mean programmers are the ones creating

these dapps so they’re going to find a

way to gamify the space.

Cryptokitties so crypto kitties is a decentralized application that allows you to buy these little cute kittens technically what you are buying is the nft data of rights to that certain token that represents the kitty however the fun part of this game is that you can actually collect a bunch of these kittens and even breed them to create more kittens. In the community, the older generation kittens are usually the most valuable and you can actually sell them for a profit or maybe sometimes a loss if you play the game long enough even more so you can actually rent out your kitten to breed with someone else’s kitten as a strange form of passive income on the blockchain.

zed is technically a gambling application since you buy NFTS that represent racing horses and then race them every horse has specific skills and a point system also every race is recorded on the blockchain so you can see all of the races including the races your horses have won or lost in this game actually went viral for a while because it combined the psychological pulls of gambling with the virality of a blockchain game.

Gambling dapps is technically a gambling app there is an absolutely massive list of blockchain gambling websites out there that are technically decentralized applications there are dapps that allow you to play games like poker slots roulette even simpler games like dice rolling or coin tossing in fact you can actually code these applications. so that the house always wins even if it’s by one percent but people love playing these games.

Tracking Dapps

So there are actually many applications out there that read smart contract data and information from the blockchain to display it to you technically these are decentralized applications but they’re usually centralized and hosted on a single web server and in most cases don’t require the blockchain specific code to work.

However they do read the data from the blockchain so we thought they deserved a spot on this list

zapify is actually a website that collects information about wallets that you have and displays it all on one page not only will it look at all the major dapps out there and find out how much money or coins you have it’ll do it for many different networks as well zapperfy is one of my favorites because it’s free to use and I can actually see a dashboard of my entire blockchain portfolio in one place now you should know there are many different applications like Zapify but we thought we’d share the one that we use

Marketplaces

Cryptokitties has proven themselves to be an asset that people went crazy over in the last few years the price of some of these crypto kitties has skyrocket and their dapp that allows you to buy and sell these NFTs kitties is paving the ground for mass adoption. number two is

Rarible an air NFTs are two marketplaces for other NFTs that allow you to buy sell and even create new nft art that you specifically can sell these platforms or applications facilitate the process and allow the interaction with the blockchain so an everyday person can use it.

Bidali is a decentralized application that allows you to buy things using your crypto one of their main products is basically gift cards which they can actually deliver anonymously and very quickly remember whenever you buy stuff with crypto in the united states at least it is currently reported as a sale and because of that, you have to pay taxes although bidali does not report to the IRS so the liability is in your hands.

One last dapp that doesn’t really fit into any of these categories is something called ENS

ENS stands for ethereum name service and we actually have an entire video explaining how it works in shortens turns those long ethereum addresses into any address that you want for example we actually own coinglid.eth.

So if you send any of your coins or tokens there it’ll go to our wallet.

Now as we in this article you need to know that the categories that we listed are just the major ones we wanted to share this space is incredibly new and there are new dapps being built every day in fact blockchain developers are one of the highest-paying jobs this year

Simply because there is so much money being poured into the space and there’s a lack of people knowing how to code it the sky’s the limit and we truly believe this space has a lot of potential for positive growth maybe some of the best developers that will ever be may use our videos as resources to learn and be inspired at least that’s our goal thank you guys

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