dApps (Decentralized Apps) A dApp is a software application that runs on a blockchain network that has the capability of directly interacting with crypto wallets. They are useful for performing actions with your wallets such as: ● Exchanging one crypto for another on decentralized exchanges (DEXs) ● Purchasing NFTs (like art or digital membership cards) with your crypto ● Authenticating ownership of specific tokens (membership cards) to provide exclusive access to different platforms & protocols ● Accessing video games and retaining progress data ● File storage ● And more What is a DEX (Decentralized Exchange) A decentralized exchange AKA DEX is a peer-to-peer marketplace for cryptocurrencies that allows users to exchange crypto in real-time. Akin to Forex (Foreign Exchange Markets) for traditional currency a DEX allows individuals to exchange their cryptocurrency for other types of cryptocurrency (ie exchange ETH for POL ). The key difference is that there is no controlling authority that governs the price of the exchange. Exchanges happen in real-time and the cost of the exchange is dependent upon supply & demand. Much like the stock market. A major benefit of this is that there is essentially no middleman. Examples of DEXs ● Uniswap ● Dextools ● DexScreener DEX vs Bridge Not to be confused with DEXs is what is known as a “Bridge”. They are very similar in function, but are used for 2 very different reasons. A bridge, unlike a DEX, allows you to “Bridge” crypto across different networks (ie ETH to BTC ) We will dive more into different networks later, but it is important to be aware of the different networks and which network you are working in or on. If you try to send crypto from one network to another without using a “Bridge” you could lose your funds forever. Intro to NFTs NFT stands for “non-fungible token”. “Non-fungible” means it cannot be copied or counterfeited. The identity of an individual NFT is verified by the blockchain. An NFT is like a cryptocurrency with more capabilities. While cryptocurrencies are primarily used as
exchange mediums or a sort of digital “fuel” to power transactions on the blockchain, NFTs are like the products that you buy and fund with your cryptocurrencies. Examples of NFTs NFTs can be used and/or employed for various purposes, such as ● Digital art ● Digital membership cards ● Digital authentication of physical products (ie pink slips, title deeds, collectibles, etc) NFT Marketplaces Much like a DEX, NFT platforms are decentralized mediums of exchange. The price of an NFT (after its initial sale) is determined by the supply & demand of the NFT and is sold through peer-to-peer exchange. Of course anyone can set the price of their NFT at whatever they would like, but if others are selling the same type of NFT for cheaper no one is going to buy yours. Examples of NFT Marketplaces ● Opensea ● LooksRare ● X2Y2 ATTENTION: DEXs (and Bridges) & NFT platforms are similar in their functionality, but different in their use cases. DEXs (and Bridges) are used to exchange crypto (currency) with one another while NFT Marketplaces are used to exchange non-fungible tokens (products) with each other.