Best dapp guide guide: 3 places to roam the Web3

Purchasing NFT, trading Crypto and experiencing Web3 games are the activities with the largest audience in the Web3 ecosystem. If you are interested in Web3 and Cryoto, you must experience the above three events.

These activities all have one thing in common: they are enabled by dapps (also known as decentralized applications). A dapp is similar to an app or game you might download on your phone or computer, except instead of using an email address and password to access them, you can use a crypto wallet like MetaMask to access them.

Since dapps are built on the blockchain, there are some fundamental differences between them and regular mobile (mobile) or computer (web) applications.

1. What is the difference between dapp and traditional app?

decentralization (decentralization)

Since the blockchain is a decentralized peer-to-peer network, the code supporting dapps is hosted on a public platform, and no one person or organization has complete control. Most dapp codes are also open source, and anyone can view, audit and verify .

In contrast, the code for many mobile or computer applications resides on centralized computer servers controlled by a single entity. Commercial applications are rarely open source, making it impossible for users to verify how they work.

privacy

A typical mobile or computer application requires the entry of certain personal information, such as your name, email address or phone number. Such apps may also track you through data generated when you use the app.

Since dapps are accessed through encrypted wallets, you don't need to use your IRL identity to interact with them. You are in control of your information, which means you can completely disconnect from the dapp and stop sharing data at any time.

anti-censorship

Because traditional apps run on centralized servers, governments can force companies to block access.

Dapps don't require anyone's permission to use, and no single entity can prevent you from connecting to an open blockchain network.

smart contract

Dapps are often governed by smart contracts that automatically execute when certain terms are met. They do not require the approval of intermediaries. Since the code in smart contracts is public and can be verified by anyone, audited smart contracts operate in a predictable manner without the need for intermediary credit.

Control over traditional applications is often backed up to a single group or entity. The exact process is often proprietary information. Transactions cannot be publicly audited or verified like they can on a blockchain.

Dapps exist on a variety of smart contract-compatible blockchains, including Ethereum, Solana, and Avalanche.

Alright, enough about the basics, here are some of the best dapp use cases by category.

2. Collect NFTs

NFTs (non-fungible tokens) are by far one of the most popular use cases for crypto. This $40 billion-plus market has created a new class of influential artists, attracted new adopters to the crypto ecosystem, and expanded the possibilities of what people think when they hear the term "digital art." If you want to enter the NFT market, these dapps may be a good place to start.

(1) Coinbase NFT

Coinbase NFT isn't just an NFT marketplace - it's also a social networking app. Users can follow each other and comment on profiles, similar to Instagram, while also browsing listings and buying or selling NFTs from various collections, similar to traditional marketplaces like OpenSea. Users can buy and sell NFT based on the Ethereum network.

(2) OpenSea

OpenSea is currently the largest NFT marketplace in the world, recording over $11 billion in transaction volume so far in 2022 alone. You may have heard that NFTs have been in the news a lot in the past year, and many people who buy and sell NFTs use OpenSea to do so. In May 2022, the platform had more than 451,000 unique users who made at least one transaction. You can buy and sell NFTs on OpenSea based on Ethereum, Polygon and Solana networks.

(3) Magic Eden

Magic Eden is the most popular NFT marketplace built on the Solana network, accounting for over 95% of all NFT transactions on Solana. While Magic Eden has far fewer transactions than OpenSea, a key difference is that the transaction fees associated with using Solana are much cheaper than using Ethereum, making Solana more accessible to many, especially newcomers to cryptocurrencies By.

3. Earn Crypto through DeFi

DeFi, or decentralized finance, is a growing use case for cryptocurrencies, referring to dapps that allow users to conduct peer-to-peer financial transactions directly, rather than through financial institutions.

Using DeFi dapps, users can exchange currencies, earn interest, borrow or lend tokens, and even buy insurance policies. Also, when using DeFi dapps, users are not limited by how much currency they can transfer at one time or who they can transact with, and since these dapps are governed by smart contracts, users are not limited by many of the constraints built into our traditional financial system. The impact of bias. If you are interested in how cryptocurrencies can replace the traditional financial system, one of these dapps below might inspire you.

(1) Aave

Aave is one of the most popular DeFi apps out there. Users can lend their tokens to earn interest or borrow cryptocurrencies using their tokens as collateral. It’s available on seven different blockchain networks, and users have collectively deposited nearly $20 billion into Aave.

(2) Uniswap

Uniswap is the largest decentralized exchange (or DEX) running on the Ethereum blockchain. It allows users anywhere in the world to trade cryptocurrencies without intermediaries. Uniswap pioneered the automated market-maker model, in which users provide Ethereum tokens to a Uniswap "liquidity pool" and an algorithm sets market prices based on supply and demand (as opposed to order books, which are held at a hub like Coinbase. matching bids and asks on chemical exchanges). By contributing tokens to the Uniswap liquidity pool, you can earn rewards while enabling peer-to-peer transactions.

(3) NFTfi

HODLing (simply, buying and holding for the long term regardless of market trends. Bitcoin fans have even retroactively turned it into an acronym for "hold on for dear life") is a cornerstone of crypto culture , which also extends to NFTs. Sometimes, no matter how much it's worth, people just don't want to sell. If you have high-value NFTs that you don't want to liquidate, NFTfi allows you to deposit NFTs as collateral and take crypto loans directly from other users willing to provide that liquidity. NFTfi can be used on the Ethereum blockchain.

4. Web3 games

Imagine a whole new universe like this, where you can actually own the character you're playing, just like in traditional video games, and you can also earn currency by achieving in-game achievements, and this currency can be traded and manifested. This is a new type of game built on the blockchain. Currently, it is generally defined as a game for playing and earning money, but it is regarded by many as the future of games. Playing and earning games will bring income and even support themselves to tens of thousands of users around the world in 2021. Of course, the problems are also obvious, such as the unsustainable economic model of the Ponzi effect, which is also a topic that will be discussed later in the column.

(1) Axie Infinity

Axie Infinity is one of the most popular crypto games and arguably coined the term "Play-to-Earn". Inspired by Pokemon, users can raise and train NFT pets named Axies in the game, and go to battle to earn currency by winning battles and completing tasks. In the summer of 2021, Axie has about one million DAU at its peak. Playing Axie Infinity requires you to first purchase at least three Axies from the in-game marketplace.

(2) DeFi Kingdoms

DeFi Kingdoms is another game built on the Harmony blockchain, reminiscent of the game Rune. Players in DeFi Kingdoms can purchase an NFT character called a "hero" and complete quests, upgrade various characteristics of the hero, and earn in-game currency. The game also combines gaming with aspects of DeFi, allowing users to earn interest on in-game tokens by depositing tokens into the game bank.

(3) Sandbox

You may not have heard of Web3, but you must have heard of Metaverse. The Sandbox is one of the most popular Metaverse worlds, built on the Ethereum blockchain. In Sanbox, users can own land that can be used to build almost any type of application, from events to games to brand experiences. The game has a built-in "Game Builder" that allows anyone to build games even with no experience. An experienced game designer, on the other hand, has the ability to create a more immersive experience that anyone can navigate.

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Disclaimer: This article is based on the author's independent judgment after experiencing hundreds of apps, and selected 9 dApps for friends who are just getting started with Web3. There is no investment advice. Crypto is volatile, so do your research before investing.