Top 5 DApps in 2022 That You Should Know About
The concept of decentralization is slowly spreading and tightening its roots in the big community of investors. People are feeling more inclined towards adopting decentralization in all their day-to-day practices like transactions, gaming, investments, wallets, and so on. As a result, many use cases of decentralization are taking birth offering people an improved way of performing their digital transactions. One such case is decentralized applications or DApps which are emerging as a revolutionary step, especially in the world of decentralized finance. So, let’s first understand what decentralized applications are and know about the top 5 DApps in 2022.
What are Decentralized Applications (DApps)?
Decentralized applications or DApps are basically applications that work on distributed ledgers or computing systems which is a blockchain network. The main characteristics of DApps are:
The source of decentralized applications is open to the public which means that any person can verify, copy, use or modify the code of the application. This is to keep the working of the application transparent and to obtain the trust of the users.
Blockchain networks support decentralized applications. It means that there is no single governing authority that controls or overlooks the operations. In contrast, there are multiple users/computers that control the functioning of the network of ledgers.
Cryptography protects these decentralized applications. It means that all the transactions reflect on the blockchain which is publicly visible to all. This means that there is no point of failure associated with the decentralized application that may hamper the working or transactions.
DApps are better than traditional applications in the fact not a single entity controls them. This means that if one component of the network fails, it won’t have any effect on the other. In addition to eliminating the chances of failure, this network system of decentralized applications imparts additional security to the system. This is because there are multiple users governing the code of the application. So, the hackers can not take down the entire system by decoding only one of them.
Top 5 DApps in 2022
While there are numerous decentralized applications existing in the market, it is important to know about the ones that are truly as decentralized as they claim to be. So, here are our top 5 DApps in 2022 that you should know about.
Golem is a decentralized application that focuses on powering other computers on the network chain from the user’s computer. The main idea behind creating such an application was to create a supercomputer. The supercomputer should derive its power from a collection of computers. Then any user in the world can access the supercomputer. The application lives on the Ethereum blockchain and has been there for more than three years now. The makers of Golem DApps constantly review and audit the application to ensure maximum user satisfaction. Thanks to the fourteen software implementations that have led Golem to top the list of top 5 DApps in 2022.
MakerDAO is a decentralized application that has its own digital cryptocurrency known as DAI. The primary uses of this DApp are lending and borrowing cryptocurrencies without the involvement of any third parties. This reduces the risk of manipulation of transactions by third parties. In addition, as there are no external groups playing intermediaries in the transactions, the time needed for completing the transactions decreases considerably. The most striking feature of MakerDAO is that its digital currency DAI is a stable coin. This means that DAI is somewhat resistant to the high fluctuations in its value that is very common in crypto markets.
Circulor is a unique decentralized application. It helps in maintaining the supply chain of electric cars and other products powered by electricity. It also enables the user to trace the supply chain of the products. This helps the end consumers of the product to know about the origin of the raw material that constitutes the product and check its genuineness. In addition to this, the companies selling the product can track the deliveries. Also, they can safeguard them and keep a track of payments. Managing a supply chain has become easy and transparent. This allows the users of the product to ensure the quality and standards of the product.
Uniswap is one of the best-decentralized exchanges living on the Ethereum chain. It has gained such huge popularity because it has integrated several use cases of decentralization. It has more than 300 applications existing in its ecosystem right now. Since its inception, the trading volume on Uniswap has hit over $681 Billion. Some of the most important features of Uniswap are low trading fee and self-custodial features. The self-custodial features allow users to have complete control and possession of their funds. This helps the DApp to gain user confidence. It’s because they don’t have to worry about the protocol or hackers blocking their funds or stealing them away. Moreover, the users do not need to possess only native tokens to trade on the platform. They can trade using a variety of tokens supported by the platform.
PancakeSwap is one of the most preferred DApp in the crypto world because of the several advantages that it offers. The transaction costs on PancakeSwap are significantly lower than other competitor platforms. In addition to providing token swapping services, there are many other facilities like yield farming offered by PancakeSwap.