Hello there again👋👋👋👋👋👋❗❗❗❗❗
It's @cosai99 with the next homework post for task 8, Steemit CryptoAcademy Season 4, Introductory Course. It brings me great pleasure to share with you the next topic on the task list, Decentralized Applications. We will talk about the various technologies integrated into the blockchain system of the crypto-world. Here, we will discuss how a Decentralized System conducts transactions without having to rely on CEX. We will also talk about how these decentralized apps work and how to execute a few actions using them. This lecture was facilitated by @wahyunahrul and reviewed by @nane15 and @dilchamo.
Let's take a peek.🚓🌫
Overview of Decentralized Apps(dApps).❄📱💻🖥🔐✔
Now let's take a detour on some scenarios concerning today's subject matter. We know of Facebook, the number 1 social media application running in today's world. As it is, Facebook collects information regarding its users and also that of the activities that users execute. This includes liking, commenting, sharing, posting, chatting, and so forth. There are rules regarding such activities and if breached, can have your account compromised. Yes. Facebook reserves the right to do that the moment you agree to their Terms and Conditions, and also their Privacy Policy. By doing this, you entrust them with the management and partial control of your account. This kind of application is called Centralized App. These apps can control your account if your should breach their policies. Also, this can be so when there is a third party needing the information, say, the police investigating a crime you are suspected of. They store the data in servers they own and control it as they will. This resembles the centralization system and CEX.
I guess you know where this is going.
But then the world is gradually growing and developing into an era technology rules and evolves. Hence, there is a need to keep improving our ways of doing things. So, this gave birth to an evolved form of an application called Decentralized Apps or dApps, if you will call them. These applications follow the way the blockchain works hence, giving control of the account to users. It has a backend decentralized peer-to-peer network code running to facilitate its function. It has a user interface running as its frontend code for users to interact with the application.
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It must be noted that dApps work with Smart Contract. Let's take a layman's view of what Smart contracts are.
Say you want to purchase a can of orange juice from a vending machine. You know by default that you would need money to buy it. So, the vending machine is programmed to give you the can of juice after you slot in money. So, the agreement established is that you need to first have an amount of money fed into the machine and then your order will be completed.
So that "Programmed Agreement" is the smart contract between you and the vending machine.
Hence, we can say Smart Contract is a series of codes running in the dApps to process transactions and verify them on the blockchain network. For instance, there was this one time I tried to initiate a transaction on Justswap, a dApp on Tron Network. I needed about 3600 energy points to initiate the transaction but then I only had 65 energy points. Hence, the transaction failed because I went against the requirement of the transaction. This "requirement" was set by a set of codes, namely the Smart Contract of that particular transaction, and ran in the background to check if I fulfill the requirement of the contract but upon not qualifying by not possessing the needed energy points, the transaction failed.
Also, such information is displayed for all to see on the blockchain.
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dApps use this kind of technology to work efficiently, as opposed to conventional contracts that banks and CEX use.
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Now, dApps are divided into 3 types:
Type I, these dApps use only their native cryptocurrency to engage in transactions. They are mostly named after the blockchain network owning them. e.g. Ethereum.
Type II, these dApps work based on the blockchain provided by Type I dApps. These work on Initial Coin Offerings(ICO), which are tokens generated using invested money in the blockchain. These dApps have the tokens at a very cheap price hoping that the growth of the blockchain might increase the value of the tokens over time. e.g. Omni Protocol, a dApp that is built in the Bitcoin blockchain, helps with peerless and effortless transactions.
Type III, these dApps work based on Type I and II, in that aside providing a platform for asset exchange provide other services to users e.g. Cryptoblades, a dApp which focuses on providing gaming services to users.
The advantages of dApps follow that of the decentralized system, which are:
Been secure since they provide a high level of anonymity because not a lot of information on users is displayed.
Been devoid of any manipulation from third parties, interrupting the smooth usage of the app.
Low level of breaking down or loss of information since the information is stored on a lot of nodes or servers.
Faster payments or transactions due to the absence of a third party.
Providing reliable data records, since information can be assessed by all, anytime and anywhere.
Today, we will focus on 2 exchange dApps, Justswap and Uniswap.
QUESTION 2
Look for 2 similar dApps and do a detailed fundamental analysis and compare the two dApps and explain the results of your analysis. (Screenshots required).
Justswap(Now Sunswap)
This is a dApp, available on the Tron Network, that is used for the exchange of tokens in the Tron blockchain. It allows users to exchange TRC-20 tokens with other cryptocurrencies. It also allows for users to contribute to the liquidity pool(LP) and earn LP tokens.
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To fully utilize Justswap(or better known, Sunswap), you need to connect your Tron account to your Tronlink Wallet to fully access the tools available on Justswap.
Let's talk about the history of Justswap.
Justswap was created in August 2020 by the Tron Network owned by Justin Sun. It was the first exchange dApp in the Tron blockchain to actually allow the exchange of LP tokens and even can be created by the users themselves. In 24 hours of its launch, Justswap had a liquidity pool valued at $3.5 million. This proved the project to be one of the most successful the Tron Network had invested in, thereby expanding the network when new users join in due to the opportunity Justswap created. Just recently, Sun network had absorbed the dApp and now renamed it Sunswap with a new tool that we will discuss later on.
Now, we can talk about the tools available on Sunswap
As I have already said, you need to connect your Tronlink account to your Tron account. Here on Steemit, there is a STEEM-Tron Integration Wallet that links your STEEM account to a Tron account. This just requires you to either download the Tronlink app on Android or iOS or add the chrome extension to your browser.
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The Sunswap dApp is located at the dApp section of the Tronlink Wallet browser extension.
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This takes you to the Sunswap homepage. Let's explore some of the tools used here and how they are used.
Swap
This allows you to swap or exchange TRC-20 tokens for other cryptocurrencies. Such crypto includes USDC, SUN tokens, SUNOLD tokens, NFT, BTC, WBTC, WETC, WBTT, WTRX, JST, USDT, USDJ, LTC, and so on.
Let's try exchanging TRC-20 tokens for SUN. We will try to exchange 2 TRC-20 tokens for 5.588 SUN tokens.
- Input the amount of TRC-20 tokens, i.e. 2, and you will see the corresponding amount of SUN tokens you can swap with 2 TRC-20 tokens.
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Confirm the transaction.
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Sign the transaction.
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Wait for confirmation of the transaction.
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You will receive a notification of the transaction been completed.
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LP Pools
Here, you can contribute tokens into the liquidity pools for other users to borrow for their transactions. In return, you obtain LP tokens. Think of this as saving your money in the bank. You gain interest on the money you saved based on the interest placed on the loans people borrow from the bank. This works the same way. Here, the borrowers are to use LP tokens as collateral in case they are unable to pay back in the set period. You can either create your liquidity pool or invest in the ones available on the dApp.
Let's try adding to our liquidity pool.
Input 1 TRC-20 token to put 2.8229 SUN tokens into liquidity pool and click on "supply."
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Approve the transaction.
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Confirm the Supply.
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Sign the transaction.
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A notification will show of liquidity being added.
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Now, the one provided by the dApp works the same way. It just has set to specific tokens to be exchanged. It has 9 types of LP pools you can supply the LP to, in other ways mine. These are shown in the image below.
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SUN Burn
This tool is used to burn SUN tokens to improve the well-being of the community. This can be likened to the vested tokens in STEEM, SP. This helps grow the SUN Network. Below shows statistics of how many SUN tokens are burned, Following the PoB mechanism.
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Scan
The scan feature allows you to view the market price of the TRX tokens and other tokens as well as the market volume. It has a search bar that can let you search for such information about the coin you inputted.
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As shown here, the price and the liquidity pool volume of TRX on the TRON blockchain.
Again, you can view other crypto liquidity volumes and prices, and you have the option to either add to your liquidity pool if you have such tokens or you can trade with your TRX tokens for other tokens.
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These are the fundamental tools on Sunswap.
Poloni DEX
Poloni DEX is another exchange dApp on the Tron Network. It works just like Binance. It takes orders in the bid-ask platform and matches buyers and sellers. You can also exchange TRX tokens for other cryptos. It was created after Poloniex in November 2019. It offers a zero-rate transaction of tokens, meaning that you pay nothing to engage in the transaction.
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You can register on Poloni DEX by linking the TronLink wallet to the Poloni DEX.
How?
Simple.
You first connect your wallet by clicking "Sign in with TronLink" after the pop-up comes when you click sign in.
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You then click "Connect" on the pop-up that appears.
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After, your Tronlink wallet will successfully connect.
Exchange
The exchange tool aids in exchanging TRX tokens to other tokens, just like the name implies.
Let's try obtaining JST with TRX.
We will exchange 10.4 TRX for 13 JST and hence we will go to the "Buy JST" section and input the values there and click Buy.
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We then sign the transaction by clicking on "Sign" to complete the transaction.
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Balances
This shows an overview of the amount of TRX tokens and other crypto in your wallet. It also gives you an option of trading with crypto as seen below.
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There are just a few of such tools on Poloni DEX that are of extreme use to the users. So there isn't much to explore here.
Comparing the two exchange dApps we can arrive at the following conclusions.
Sunswap is more secure than Poloni DEX because it has more users. Due to this, developers are more encouraged to continue improving the app for better user experience.
Sunswap has more other crypto to trade with as compared to Poloni DEX. Hence, Sunswap has a larger liquidity pool compared to Poloni DEX. So, users will have more options to trade with and as a result, improve flow of crypto long term.
Sunswap has more tools to explore with. This makes it easier for the users to do multiple things like burning SUN tokens which improves the Tron Network as a whole. Poloni DEX doesn't;t have such a feature and hence cannot contribute significantly to the blockchain.
Due to the fact that Sunswap emerged from Justswap, it has more exposure than Poloni DEX an hence may deem more user-friendly . This can propagate the use of the dApp and hence more returns can be obtained if it is invested in the development of Sunswap. This can caused the inevitable decommioning of Poloni DEX.
As a result of the above stated reason, much attention wouldn't be given to Poloni DEX and hence bugs may develop after a certain amount of time. This will cause a lot of technical breakdowns and will definitely cause obstructions to the activities of users.
In conclusion. I would say that Sunswap is a better exchange dApp to use in comparison to Poloni DEX due to a aforementioned reasons.
Conclusion.
Today, we have;leant about dApps and how they influence our crypto-tradin life, how convenient they make out lives. We also talked about Justswap and Poloni DEX and some tool available on these two. We were also able to compare these two and give a sound analysis. I hope we have a good idea of dApps now.
Thank you for your time @wahyunahru, @nane15, @dilchamo🙏🙏🙏🙏🙏
