Monica
💫 Summary
A dApp, or decentralized application, is an application that runs on a blockchain instead of centralized servers, providing benefits such as open source code, censorship resistance, and continuous operation. Examples include decentralized finance platforms, gaming apps like CryptoKitties, marketplaces for NFTs, tracking apps like Zapper.fi, educational platforms, and Ethereum Name Service (ENS).
✨ Highlights📊 Transcript
A dApp is similar to a regular application, but instead of reporting back to company servers, it reports back to the blockchain.
00:00
dApps can only be built on smart contract networks like Ethereum.
Smart contracts allow two parties to make an agreement written in code, eliminating the need for a third party.
The code of dApps is open source, allowing anyone to look at and verify its functionality.
Decentralized applications (dApps) have the benefit of being unstoppable, ensuring financial control and preventing censorship, as well as being always available due to their decentralized nature.
02:06
Smart contracts in dApps cannot be stopped once triggered.
Governments or platforms like Facebook and Twitter cannot control or censor dApps.
DApps are always available as they run on the blockchain, making it infeasible to shut them down.
Financial dApps, such as decentralized finance (DeFi) applications, offer features like borrowing, lending, and margin positions.
dApps are decentralized applications that allow investors to earn a return by investing in liquidity pools, traders to trade tokens on decentralized exchanges with low fees and no background checks, and gamers to buy and sell NFTs representing virtual assets like kittens and racing horses.
04:15
Investors can earn a return by investing in liquidity pools where traders can trade tokens.
Decentralized exchanges (dexes) allow traders to trade tokens with low fees and without background checks.
Game dApps like CryptoKitties and Zed Run allow users to buy and sell NFTs representing virtual assets such as kittens and racing horses.
This section discusses three categories of decentralized applications (dApps): gambling apps, tracking apps, and marketplaces.
06:24
Gambling apps combine the psychological pulls of gambling with the virality of a blockchain game.
Tracking apps read smart contract data from the blockchain to display it to users, although they are usually centralized and hosted on a single web server.
Marketplaces like CryptoKitties and Wearable allow users to buy, sell, and trade NFTs.
Bedali is a decentralized marketplace app that allows you to buy things using cryptocurrency, particularly gift cards, which can be delivered anonymously and quickly.
08:31
Bedali does not report to the IRS, so the responsibility of paying taxes when buying with crypto is on the user.
The next category discussed is educational, where the website is being developed into a decentralized application for completing quizzes, watching videos, reading articles, and earning XP through a Metamask wallet.
ENS (Ethereum Name Service) is another dApp mentioned, which turns long Ethereum addresses into custom addresses.
00:00you know how your phone can actually
00:01have a bunch of different applications
00:03there's facebook and instagram and gmail
00:06and youtube they're basically all
00:08applications that run code that was
00:09created by the company so that you could
00:12interact with their company
00:13well a dapp or a decentralized
00:15application
00:16is very similar in how it works except
00:19instead of reporting back to facebook
00:21servers or tick tock servers
00:23this app reports back to the blockchain
00:25you're simply interacting with the
00:26blockchain through the application
00:28welcome the whiteboard crypto the number
00:30one youtube channel for crypto education
00:32and here we explain topics of the
00:34cryptocurrency world using analogies
00:36stories and examples so that you can
00:38easily understand them in this video we
00:40are going to explain
00:41exactly what a dapp or decentralized
00:44application is
00:45how they work and why they might hold
00:47the key to the future of the technology
00:49first we're going to go over some of the
00:50benefits of dapps and then we're going
00:52to cover the different types of them
00:54including a bunch of specific examples
00:57the first thing you need to know is that
00:58dapps can only be built
01:00on smart contract networks this means a
01:03blockchain like bitcoin
01:05cannot utilize dapps bitcoin was
01:07designed to only allow the sending of
01:10its native coin
01:11ethereum however can utilize something
01:13called smart contracts which is code
01:15that makes up a program so that it can
01:17be ran
01:18to do more complicated things you should
01:20check out our video on smart contracts
01:22so that you're not confused throughout
01:23this video
01:24but in short they allow two people to
01:26make an agreement written in code
01:28so that they don't have to trust a third
01:30party to follow through they can simply
01:32just trust the code
01:33another benefit is that since the code
01:35is out there to be run
01:36it is what we call open source which
01:38means anyone can look at the code
01:40this allows a lot more trust to be given
01:42to the application
01:44we can't really look at how facebook
01:45recommends us friends to interact with
01:47or how google knows what we ate for
01:49dinner
01:49but with any smart contract we can
01:51actually look at the code
01:53and see how it works this is a big
01:55benefit over centralized applications
01:57next dapps are also censorship resistant
02:01and this is a fancy way of saying they
02:02don't have to answer to governments or
02:04corporations or even specific people
02:06if the smart contract is coded to do
02:09something and it's triggered
02:10nobody can stop it naturally this is
02:13good and bad
02:14but it's really important for financial
02:16applications this way nobody can control
02:18your money
02:19in history governments that have done a
02:21lot of bad things
02:22have had the control of their citizens
02:24money there have also been cases where
02:26facebook or twitter can actually ban
02:28or censor certain people based on their
02:30views or opinions
02:32a decentralized application will not
02:34allow this unless it's written
02:36to another big benefit of decentralized
02:38applications is that they will
02:40essentially
02:40never go offline now there's been times
02:42where i've actually seen facebook or
02:44even youtube down
02:45maybe their servers have a bug or
02:47there's an outage or they simply just do
02:49not work it's
02:50usually for a very short period of time
02:51because there's a lot of money involved
02:53but technically the government could
02:54come in and just shut them down since
02:56dapps run
02:57on the blockchain they will actually
02:59never go down because they are run by
03:01hundreds of thousands of computers
03:03all around the world it would be
03:05infeasible to turn them all off if not
03:07it's impossible
03:08so now that you know what makes dapps so
03:10cool let's get into some examples of
03:11them
03:12first off let's start off with financial
03:14dapps
03:15there are actually many decentralized
03:17applications that provide a way for
03:19people to invest in something called
03:21decentralized finance decentralized
03:23finance
03:24or defy is a new monetary protocol that
03:27uses blockchain to allow investors to do
03:29new things
03:30and even some old things with their
03:32money with a ton of new benefits
03:34let's go over some of the ways adapt may
03:35use your money number one
03:37borrowing and lending so ave is a
03:40platform that allows a user to deposit
03:42their ethereum or matic tokens to
03:44certain smart contracts whenever you
03:46deposit these coins and tokens
03:47you can actually receive an interest
03:49rate on them allowing you to basically
03:52invest with them
03:53ave also lets you borrow tokens
03:56basically if you have enough collateral
03:57already deposited so without going too
04:00much in depth
04:01this allows you to borrow at different
04:03interest rates and even create
04:05specific margin positions if you want to
04:07learn more about ave we've actually
04:09created a specific video over this topic
04:11number two is providing liquidity so
04:14providing liquidity
04:15is actually a very complicated idea but
04:17we're going to make it simple
04:18in short there is not much money in the
04:20tokens out there to trade
04:22so investors can come along buy these
04:24tokens
04:25and then invest them in what is called a
04:27liquidity pool which allows other people
04:29to trade back and forth using their
04:30tokens
04:31the traders pay a small fee that allow
04:33the investors to earn a return for their
04:35investment
04:36it's a win-win situation and number
04:38three are
04:39exchanges now as i mentioned allowing
04:42traders to find a way to actually buy
04:43and sell their tokens is one of the
04:45issues in the decentralized finance
04:47world
04:47exchanges are decentralized applications
04:50that allow traders to take some of their
04:52tokens
04:52and trade them for another token usually
04:55with really low fees
04:56almost instantaneously and without
04:58needing any background checks or
05:00identification verification
05:01that was a mouthful but what it means is
05:03that you can sell a million dollars of
05:05ethereum
05:06without anyone blinking an eye or asking
05:08any questions by the way these exchanges
05:11are actually called dexes which stands
05:13for decentralized exchange
05:15next up on the menu we have game dapps
05:18now of course there's going to be games
05:20i mean programmers are the ones creating
05:22these daps so they're going to find a
05:24way to gamify the space
05:25number one is cryptokitties so
05:27cryptokitties is a decentralized
05:29application
05:30that allow you to buy these little cute
05:32kittens technically what you are buying
05:34is the nft data of rights to that
05:36certain token
05:37that represents the kitty however the
05:39fun part of this game
05:40is that you can actually collect a bunch
05:42of these kittens and even breed them to
05:44create more kittens
05:45in the community the older generation
05:47kittens are usually the most valuable
05:50and you can actually sell them for a
05:51profit or maybe sometimes a loss
05:53if you play the game long enough even
05:55more so you can actually rent out your
05:57kitten to breed with someone else's
05:59kitten
05:59as a strange form of passive income on
06:02the blockchain
06:02number two is something called zed run
06:05zed is technically a gambling
06:07application since you buy nfts that
06:09represent
06:10racing horses and then race them every
06:12horse has specific skills and a point
06:14system
06:15also every race is recorded on the
06:17blockchain so you can see
06:18all of the races including the races
06:20your horses have won or lost in
06:22this game actually went viral for a
06:24while because it combined the
06:26psychological pulls of gambling
06:27with the virality of a blockchain game
06:30number three
06:31is basically gambling so just like zed
06:33is technically a gambling app
06:35there is an absolute massive list of
06:37blockchain gambling websites out there
06:39that are technically
06:40decentralized applications there are
06:42daps that allow you to play
06:43games like poker slots roulette even
06:47simpler games like
06:48dice rolling or coin tossing in fact you
06:50can actually code these applications
06:52so that the house always wins even if
06:54it's by one percent but people love
06:56playing these games
06:57our next category is tracking apps so
07:00there are actually many
07:01applications out there that read smart
07:03contract data
07:04and information from the blockchain to
07:06display it to you technically these are
07:08decentralized applications but they're
07:10usually centralized and hosted on a
07:12single web server
07:13and in most cases don't require the
07:14blockchain specific code to work
07:16however they do read the data from the
07:18blockchain so we thought they deserved a
07:20spot on this list so zapify is actually
07:22a website that collects information
07:24about wallets that you have
07:26and the displays it all on one page not
07:28only will it look at all the major daps
07:30out there and find out how much money or
07:32coins you have
07:32it'll do it for many different networks
07:34as well zapperfy is one of my favorites
07:37because it's free to use and i can
07:38actually see
07:39a dashboard of my entire blockchain
07:41portfolio in one place
07:42now you should know there are many
07:44different applications like zapify but
07:46we thought we'd share the one that we
07:48use
07:48the next category is marketplaces number
07:51one
07:51is cryptokitties again even though we
07:53put cryptokitties in the game category
07:56it deserves its own spot in the
07:57marketplace category
07:58cryptokitties has proven themselves to
08:00be an asset that people went crazy over
08:03in the last few years the price of some
08:05of these cryptokitties has skyrocketed
08:07and their dap that allows you to buy and
08:09sell these nft kitties is paving the
08:11ground
08:12for mass adoption number two is wearable
08:14so wearable and
08:16air nfts are two marketplaces for other
08:18nfts
08:19that allow you to buy sell and even
08:21create new nft art that you specifically
08:23can sell
08:24these platforms or applications
08:26facilitate the process
08:27and allow the interaction with the
08:29blockchain so an everyday person can use
08:31it
08:31lastly as an example of a marketplace
08:33app we have bedali
08:35bedali is a decentralized application
08:37that allows you to buy things
08:39using your crypto one of their main
08:40products is basically
08:42gift cards which they can actually
08:44deliver anonymously and very quickly
08:46remember whenever you buy stuff with
08:48crypto in the united states at least
08:50it is currently reported as a sale and
08:52because of that you have to pay
08:53taxes although bedali does not report to
08:56the irs so the liability is in your
08:59hands
08:59you may see what we're saying here
09:01anyways before we get ourselves into
09:03trouble
09:03let's move on to the next category which
09:05is educational
09:06so this is still an early announcement
09:08but we are actually currently developing
09:10our website into a decentralized
09:12application where you can complete
09:13quizzes
09:14watch videos read articles and gain xp
09:17through your metamask wallet
09:19once you have enough experience you can
09:20then mint limited edition nfts through
09:23our platform if you're interested leave
09:25a comment if you want to be an early
09:26tester
09:27one last dap that doesn't really fit
09:29into any of these categories is
09:31something called
09:32ens ens stands for ethereum name
09:35service and we actually have an entire
09:37video explaining how it works
09:39in short ens turns those long ethereum
09:42addresses
09:43into any address that you want for
09:45example we actually own
09:47whiteboardcrypto.eth
09:48so if you send any of your coins or
09:50tokens there it'll go to
09:52our wallet now as we in this video you
09:54need to know that the categories that we
09:56listed are just the major ones we wanted
09:58to share
09:58this space is incredibly new and there
10:01are new dapps being built
10:02every day in fact blockchain developers
10:05are one of the highest paying jobs this
10:07year
10:07simply because there is so much money
10:09being poured into the space
10:10and there's a lack of people knowing how
10:12to code it the sky's the limit and we
10:14truly believe this space has a lot of
10:16potential
10:16for positive growth maybe some of the
10:19best developers that will ever be
10:21may use our videos as resources to learn
10:23and be inspired
10:24at least that's our goal thank you guys
10:26so much for watching this video
10:28we hope that you enjoyed it we really
10:30hope that you learned something
10:31and most of all as always we hope to see
10:33you in the next video
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FAQs about This YouTube Video

1. What are dApps?

dApps, or decentralized applications, are applications that run on a blockchain instead of centralized servers. They provide benefits such as open source code, censorship resistance, and continuous operation.

2. What are some examples of dApps?

Examples of dApps include decentralized finance platforms, gaming apps like CryptoKitties, marketplaces for NFTs, tracking apps like Zapper.fi, educational platforms, and Ethereum Name Service (ENS).

3. How do dApps run on a blockchain?

dApps run on a blockchain through smart contracts, self-executing contracts with the terms of the agreement between buyer and seller directly written into code.

4. What are the benefits of using dApps?

The benefits of using dApps include transparency, security, data integrity, reduced operational costs, and elimination of central points of failure.

5. How are dApps different from traditional apps?

dApps differ from traditional apps in that they operate on a blockchain, are decentralized, have open source code, and often utilize cryptocurrencies or tokens for their functions.

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