Decentralized applications or Dapps are blockchain-based apps, which act as the frontend for smart contracts. They offer benefits that traditional apps can't provide, such as censorship resistance and transparency, making them incredibly exciting!
What is a Decentralized Application (Dapp)?
Decentralized applications, also known as Dapps, are a new type of application. Like the regular (centralized) apps you may have on your phone, they provide digital services and products to people. But, unlike regular apps, Dapps are built on a blockchain, e.g., Ethereum, and act as the frontend for smart contracts. This gives them several benefits over traditional apps.
What are the benefits of using Dapps?
The main benefits of Dapps are:
- Decentralization: Dapps are decentralized, meaning no one person or group has control of them.
- Censorship resistance: Nobody can stop you from using Dapps.
- No single point of failure: Dapps are built on blockchains, giving them more resiliency than traditional apps.
- Transparency: Most Dapps are open-source, meaning that anyone can view and verify the code.
- New business models: Dapps enable open-source projects to monetize through crypto-native models, such as tokens.
- Privacy: You don’t need to share your personal information when using a Dapp. All you need is a wallet.
Are there risks with Dapps?
While Dapps offer excellent benefits, they also have risks, such as:
- Hacks: Just like smart contracts, Dapps can have bugs or be exploited.
- Usability: Dapps are young compared to regular apps, and some of the key infrastructure to make them easier to use is still being developed.
To get an idea of what a Dapp is, we've created a list of some of the best examples available, and they are:
- Uniswap: You can exchange any token without using a centralized exchange.
- Paraswap: This searches for the best possible route for your trade.
- MakerDAO: Let’s anyone borrow DAI with their crypto assets.
- OpenSea: The largest NFT marketplace to buy and sell digital items.
How to use Dapps with Argent
In the Argent app you can easily use DeFi Dapps like Aave, Compound and Yearn. For Dapps that aren’t integrated with the Argent app, you can use WalletConnect to connect to them.
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