Blockchain technology has the ability to automate many processes that normally require a middleman, like banks and service providers. Dapps can replace these middleman and seriously impact our lives. DappRadar will be there to guide people, educate them about dapps, and onboard them into Web3. Dapps will change lives, and here are 5 ways we believe this will happen.
Decentralized applications, or simply dapps, are software applications on the blockchain. Users connect their Web3 wallet and then interact with a particular dapp. They can walk around in a virtual world using their NFT avatar, vote on a dapp’s course of development, or trade assets on a decentralized exchange. The opportunities are limitless, but what does this mean? How does this technology improve your life?
Just to emphasize: this article isn’t highlighting only what is, but also what can be. It paints a picture based on current developments in the blockchain industry, and extends that into a hypothetical future. We don’t predict the future, but as a community, we can surely try to build one that we like.
1) Ownership over digital assets that have real-life value
Blockchain technology gives wallet owners complete control over their digital assets. Crypto tokens or NFTs stored in a wallet aren’t controlled by a bank or a security firm. Instead they are 100% owned by the person who has access to that particular wallet. That’s the reason why nobody should ever share their private keys. Because cryptocurrencies and NFTs are all cryptographically secured, nobody can copy them or print more. This proven rarity through the blockchain gives digital assets value, something that could not be done before 2010. This means that digital items retain value even after someone purchased them. As the wallet owner they literally own all the assets in their wallet, and they sell, trade, keep or use them as they see fit.
2) Keeping complete control of your wealth and financial assets
In traditional finance, people hand over their financial assets and wealth to governments or banks. They do so because they have no other option. However, it’s safe to say that banks and governments don’t always do things that benefit everybody. The eurozone hit a record of 4.9% inflation in November 2021, while over 1 billion people worldwide live in countries with double digit inflation. In layman’s terms, that means that people can buy a lot less with the same amount of money. Putting money in DeFi or other dapp categories doesn’t guarantee profits and can be risky for the uninformed, but it does put the people in control instead of banks and governments. This is a type of empowerment that would not be possible without dapps. Now users can lend money, borrow money, store value, or generate interest, all without the need of a middleman.
Now keep in mind that these dapps do not come without risks. Participating or investing in a dapp doesn’t guarantee a return of money, it merely gives users an opportunity. For every ambitious developer looking to launch the next big thing, there might be a scam artist looking to capitalize on hype and unsuspecting users. Users will need guidance and education to safely traverse the plains of the metaverse. When a bank goes bankrupt a government can step in, but when a dapp rugpulls they leave users behind empty handed.
3) From consumer or puppet to participation and shared ownership
The rise of decentralized applications also highlights another aspect of our relationship with digital services. When buying digital items like games or applications on a smartphone, people are merely signing an agreement to license them until a company pulls the plug. People are consumers, numbers on a spreadsheet that need to generate revenue for a company. However, thanks to dapps and blockchain technology, people aren’t consumers anymore. Instead, they become participants. Participants in a dapp ecosystem can earn rewards when they, for example, provide liquidity, stake their tokens, complete tasks, or play a game. These rewards make participants part of the ecosystem, giving them a bit of ownership.
4) Bringing digital labor into the physical world
Because cryptocurrencies and digital assets represent a value, this value can flow into the wider ecosystem. Users can put their USDC and ETH tokens in a liquidity pool, and then stake their liquidity pool tokens to earn rewards. They can then sell those rewards for another token, allowing them to participate in a game. Furthermore, value generated through dapps is actual value in real life. This means that the gold coins someone earns in a game can make sure they can pay for medical bills. Digital labor performed in dapps generates actual value that can impact lives.
5) Challenge the status quo
These are the five points mentioned above: digital ownership, user control, shared economy, and digital labor. They empower the individual and allow people to team up and make a statement. In November, a group of people came together to form ConstitutionDAO and crowdsource a $42 million dollar bid on a physical copy of the U.S. constitution. Earlier this year PleasrDAO made headlines winning bids on NFT auctions that benefited various charity organizations. The point is: through blockchain technology and dapps people can come together and make an impact. They could launch a competitor to Uber that shares ownership over the company with its users, or launch a private messaging service gated through NFT ownership. Dapps can and will challenge the status-quo, and as Ronald Reagan once put it: “Status quo, you know, is Latin for ‘the mess we’re in”.
DappRadar is the world’s dapp store. The platform offers a comprehensive user experience to dapp users, allowing them to seamlessly explore and track applications and assets, and react to market movements via token swap and NFT trading capabilities. As the world’s dapp store DappRadar wants to create an ecosystem that benefits users and developers alike. DappRadar will launch the RADAR token, you can follow our journey here. For the most common questions about the RADAR token we refer you to our FAQ.
