Each different project and cryptocurrency can be considered as a "key" that unlocks a certain functionality. The basic care token unlocks the ability to buy ads in the Brave browser, the stable DAI unlocks the ability to participate in the DAI savings rate program, and ETH is the fuel that drives transactions in the Etheruem network. Each of these "keys" unlocks a valuable service, but one thing we know about the keys is that they only fit the lock for which they are designed.
Uniswap is the best DApp because it allows users to easily exchange the cryptography they have for the cryptography they need for a specific purpose.
Exchanges are essential for the success of cryptography
today I have a special mission. during this article, my goal is to convince you that Uniswap is that the best decentralized application. This consists of two steps. There are innumerable sorts of decentralized applications that include games, games of chance, investments, exchanges and lots of others, so my first task is to convince you of why and exchange should be the amount one decentralized application. Once that task is completed, i will be able to present my arguments on why, among a spread of exchanges, i think that Uniswap deserves to be crowned because the "Best DApp".
To illustrate the importance of exchanges, consider a quick scenario. you've got earned 20 BAT for using the Brave browser and seeing ads during the month of December. What does one do thereupon BAT? Remember, there are not any exchanges, so you can't sell your BAT. In fact, you cannot even say that your BAT "is worth" $ 3.60 because there are not any exchanges to facilitate the conversion of BAT to dollars. you can't place that BAT during a DeFi interest account because you've got no ETH to fund the transaction. If it weren't for exchanges, all you'll do with BAT is to use it within the Brave ecosystem to shop for ads or even buy something from the Brave store.
This is never a criticism of Brave or BAT. Without exchanges, any cryptocurrency would be limited to its specific niche. There would be no thanks to change from BAT to USDC or from DAI to ETH. Because it might be impossible to convert and exchange between different crypts, each crypto would be limited to its own small box and would haven't any value outside its designed environment.
Exchanges within the general sense are vital because they unite many disparate projects and currencies during a cohesive economy.
they permit users to transfer the worth gained in one ecosystem to a different ecosystem. thanks to the exchanges, I can take my BAT earnings from Publish0x and Brave and convert them into DAI for DeFi loans. Or, I can take my 1UP by writing articles about Uptrennd and buy ETH to spice up transactions. If it weren't for exchanges, what use would my 1UP have outside of Uptrennd? What use would My BAT Token have outside of Brave? Both My 1 UP and BAT Token represent the important value that I even have worked to earn, but without an exchange, that value can't be transferred off the platform where it had been won. If i do not want to extend a post with 1UP or buy and add with BAT, then all my work that was done to win that BAT and 1UP was essentially vainly .The exchanges allow the transfer useful and permit the division of labor that are so crucial to a functioning economy.
Suppose i'm especially curious about DeFi and may write top quality DeFi tutorials, but my passion is to play CryptoKitties. The exchanges allow me to use my talent to write down articles to win BAT which will then be exchanged for ETH and wont to buy Kitties.Without exchanges, I couldn't exchange my BAT for ETH, and every one my work writing articles wouldn't help me collect more kittens. He would haven't any reason to write down articles, so readers would lose reading articles that are (hopefully) beneficial to them. Kitties sellers would lose because I couldn't spend money on their products, and that i would lose because i'm not writing articles or playing CryptoKitties. Obviously, this is often only alittle example, but exchanges are absolutely essential for the operation of the crypto economy. they permit users to transfer value from one cryptographic platform to a different and permit collaboration between several users.
Uniswap is that the best decentralized exchange
I hope that my subsequent arguments have shown why i think that some sort of decentralized exchange should win the title of "Best DApp". But why do I specifically believe that Uniswap should beat all other decentralized exchanges?
In my personal opinion, Uniswap is that the best DEX in terms of simple use, security and rates.
Easy to use
Ease of use is that the favorite priority for an exchange. We must remember that the cryptocurrency features a very broad spectrum of users. a number of them are users of smart technology, while others, like me, are simply crypto fans for the opportunities and freedom it provides. For non-technological experts like me, an easy and clean interface makes it much easier on behalf of me to enjoy all the advantages that cryptocurrency offers.
I think Uniswap stands out among its peers because it offers such an intuitive user experience while providing all the desired functionality. As the screenshot demonstrates, Uniswap is pure functionality and simplicity. Once MetaMask is connected, I simply select an input token and the token that I want to receive and click exchange. The system automatically uses a default swipe, but advanced users can easily change it if they wish.
Contrast the simple and basic Uniswap interface with IDEX. Let me be 100% honest, everyone has their favorite cipher exchange, and I'm not going to say anything bad about another decentralized exchange. We are all on the same team here, but as a non-technical user, the landing page and the IDEX interface are completely confusing for me and do not work for me. I cannot understand what is happening, and it is very difficult for me to understand. Some people may love it, but I think the "Best DApp" should be an application that the masses understand easily and that is easy to use. In my personal opinion, Uniswap stands out in this regard.
Security Considerations
Let's be honest, there have been many high profile hacks, security breaches and direct scams in the world of cryptocurrencies, so any "Best DApp" should focus on providing the safest experience possible. Unfortunately, I am not an expert in computer programming, so I have to rely on third parties and external audits to help understand the security of different projects. According to Karp (2019), DeFi projects face three main types of security risks: technical risks, external risks and economic incentive failure risks.
The Uniswap contract system has been audited and approved a light verification process. Obviously, nothing is perfectly safe, but these two steps reduce the risk considerably and demonstrate that Uniswap takes user safety seriously. According to Karp,
one of the distinctive features of Uniswap is that Uniswap smart contracts are totally autonomous,
so they don't have any Oracle, administrative rights or government that can cause an external risk (2019). The only economic incentive of Uniswap is the rate of .3% per operation (Karp, 2019). This rate is divided between liquidity providers and is designed to encourage people to deposit their funds in the liquidity group. In my view, the only risk associated with the .3% rate is that it could be too low to encourage people to deposit liquidity. In my opinion, this is a minor risk, since it would simply affect the profits of being a liquidity provider and not the actual security of the funds themselves.Equitable Fee Structure
Unlike other companies that can differentiate themselves by offering a better customer experience or by offering bonus offers, cryptocurrency exchange is a very simple process, and the competitive advantage is greatly reduced to commercial and transaction fees. The Uniswap .3% trading rate is considerably lower than the rate in a centralized exchange such as Coinbase Pro (.5%), but I must be fair and note that IDEX offers a slightly lower rate than (.2%). Although IDEX may offer a slightly lower rate, I believe that Uniswap more than compensates for this small difference in rates in terms of ease of use and simplicity. You may not have the lowest rates, but Uniswap rates are still very competitive and should be considered a strength and not a weakness. In addition, Uniswap does not have a native token like the Kyber KNC. This means that users do not have to buy a "Uniswap token" to use any of the features, and they are all in the same playing field.
One of my favorite reasons why Uniswap should be considered the "Best DApp" is because its rates return to users. If I make a transaction in Uniswap, my negotiation rate of .3% is distributed to the people who facilitated that transaction by depositing their own crypto in the liquidity funds. The more liquidity an individual has supplied to the liquidity group, the greater the proportion of that negotiating rate that he will obtain. This is a very equitable model because it provides a reward and an economic incentive to the people who facilitate these decentralized exchanges by providing liquidity.
When I operate with a centralized exchange, my rates will support a large corporation. There is nothing inherently wrong with that, but I prefer to know that my commercial rates in Uniswap will go to people around the world who have deposited their own cryptocurrency. It feels like a community where everyone wins and supports each other. I have the benefit of exchanging one cryptocurrency for another, and these people receive a portion of the funds to compensate them for making that exchange possible.
Summary
There are countless cryptocurrency projects that are revolutionizing the way we win, banks, blogs, surfing the web and more. All these different projects are great, but we need exchanges to act as a bridge that allows the translation and conversion of value between the different currencies and cryptocurrency tokens issued by these various projects.
Uniswap stands out for its user's-friendly interface, great security and a highly equitable rate distribution model and deserves to win the title of "Best DApp".
References
Karp, H. (October 2, 2019). Understand the risks in DeFi: # 1 Uniswap. Retrieved on December 16, 2019, from https://medium.com/nexus-mutual/understanding-risks-in-defi-1-uniswap-e5e790692635.
Uniswap Background at : https://uniswap.io/