While the entire world has been chasing its own tail trying to figure out how to best apply and integrate cryptocurrency into the economy in such a way that it becomes a viable alternative to fiat currency, we have all missed the true innovation behind cryptocurrency, which is the blockchain technology on which cryptocurrencies are built.
And, just as we spent the last decade attempting to comprehend one of the foundational applications of blockchain technology (cryptocurrency), we will spend the next decade attempting to comprehend one of the other revolutionary applications of blockchain technology, namely decentralized applications (DApps).
What are Decentralized Apps (DApps) and how do they work?
Decentralized apps are computer programs that operate on blockchain software such as ethereum, TRON, or a peer-to-peer network. They are similar to other programs in that they are not housed on a centralized server or platform, and they are not controlled by a single organization or authority.
These applications provide users with a user-friendly interface for interacting with blockchain technology, offering the technology real-world value and functionality. While blockchain technology is fantastic, its use has been confined to the cryptocurrency business since it was the first to figure out how to utilize it.
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The hottest decentralized app developments to keep an eye on in 2022
Improved user interface and user experience
The absence of a well-developed user interface (UI) and user experience is one of the most common criticisms about the initial generation of DApps (UX). Early DApps have been claimed to be little more than gamified extensions of bitcoin trading with some rudimentary UX elements. The bulk of them resemble darknet sites with poor user interfaces. They’re very unstable, take a long time to load, and are intimidating to users who aren’t acquainted with early DApps.
Developers are starting to concentrate on user experience as the DApps industry matures and the market increases. Some existing DApps, such as Uniswap, have already developed second versions of their platforms in order to enhance the user experience. The latest versions include improved color schemes, fewer errors and glitches, and provide customers with greater functionality and integration options.
The emergence of DeFi-based DApps
The spread of decentralized financial DApps is one of the major themes of 2021 that we predict to continue into 2022. Finance apps that operate on a blockchain or peer-to-peer networks are known as Decentralized Finance (DeFi) DApps. These DApps are gaining popularity because they allow cryptocurrency owners to do numerous financial operations, such as lending, borrowing, saving, and investing, in the same way that banks do with fiat currencies.
One of the key reasons why many detractors of cryptocurrencies believed it would never be a viable alternative to fiat money is that it lacks ‘value exchange potential’ and financial usefulness. DEFI DApps make it simple for cryptocurrency owners to use their coins to access financial products such as credit, derivatives, and other financial instruments.
There are many more DApps for video games
The video game business is one of the sectors that has profited the most from DApps. DApps have transformed how games are played on computers and mobile phones, as well as spawning a slew of new decentralized games.
Decentralized games have transformed how games are played because to NFTs and DEFI DApps. New game ideas are emerging that would have been impossible to achieve with traditional video games. Upland, for example, is a new game that allows players to own NFTs of real-world properties. Gamers are not only becoming property moguls in the game, but their NFT-based properties may also be resold on NFT markets.
Cryptokitty is one such game that allows users to accumulate NFT assets (Image above). This game enables users to nurture virtual cats that can then be sold as NFTs to other players and persons on NFT markets in return for ETH. A cat was sold for $170,000 in 2018, making it the most expensive pet in the cryptocurrency world.
While this tactic works, some games provide players with in-game cryptocurrencies as a reward for their efforts. Unlike conventional games that reward players with credits that are worthless outside of the game, the awards won in these games have ‘out of game’ value that players can trade for other cryptocurrencies such as bitcoin and Ethereum