Decentralization- A pillar of Web3
Day 4 of the web3 learning journey🚀
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Web 3 has been designed to address the prevalent, potentially problematic issues inherent in the internet ecosystem. Decentralization is one of the pillars of Web3.
Today's all about decentralisation!⏭️
D: Decentralisation/Dapp/DEX/ DeFi
Decentralisation
It’s the transfer of control and decision-making from a centralized entity to a distributed peer-peer network. Essentially it’s a system of interconnected, independent computers that work together to provide private & secure access to information and services without the involvement of a central authority and without any central data storage.
💡Blockchain enables decentralisation in the next generation web.
You’ve heard of DApps but don’t know what they actually are?🤔
You’ve either used or built an app to interact, share or connect in the web2 world!
(in cryptocurrency context) Applications built on a decentralized blockchain network using smart contracts and Web 3.0 libraries are called D(ecentralised) apps i.e. DApps
They exist independently outside the control of any single central authority.🤩
Examples: @Uniswap @opensea @BitTorrent
Well there are multiple application of DApps. One of them is DeFi
Decentralised Finance is an open financial system that is global, peer-to-peer and pseudonymous
DeFi uses a P2P network to establish decentralized applications to enable everyone to connect and manage their assets regardless of their status and location. They are built to be open-source, transparent and permissionless.
Some well known DeFi dapps that you can checkout: @Uniswap @Honeyswap
Smart contracts are the foundation layer for decentralized finance!
More on this in the coming days🚀
Now that we have apps, we need a decentralised platform to help users transact on the open network.👀
DEx: Decentralized Exchange
It’s a crypto exchange built on blockchain enabling users to transact in a direct peer-to-peer manner.
It’s run by its users and smart contracts instead of an intermediary.
@Uniswap is currently the biggest decentralised exchange, with a market share of 43% as of May 2022!
Thats a wrap for today!
Stay tuned for more on the new vocabulary of the web for next 30 days.💯
It’s like a free crash course on the jargons and terminologies in Web3.
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