DApps are a way of life.
- Decentralized applications are being used all over the world to provide new financial services.
- What are decentralized applications?
- Decentralized applications are open-source, meaning they can be accessed by anyone without any central authority or server.
- They are created through smart contracts, which are digital agreements that cannot be altered.
- Decentralized applications offer a wider range of financial services, including fixed income, donations, borrowing and lending.
- Investors can earn passive income with decentralized apps and the potential for high returns is on the rise.
Do you believe in a future with no middlemen?
Rather than running on central servers, decentralized applications (dApps) run on peer-to-peer networks and blockchains. The number of dApps rose from 25 in 2015 to over 3,600 today, including social media platforms, decentralized banking and more. The majority of them are built using Ethereum’s (CRYPTO:ETH) network, allowing digital transactions between parties to self-execute based on conditions met (smart contracts).
dApps process nearly $500 million ($182.5 billion yearly) worth of user transactions each day. So what’s behind this sudden increase in popularity, and how can they add value to investors’ blockchain portfolios? Let’s find out together.
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How to use dApps in crypto investing
dApps are so popular because they integrate with decentralized finance and provide services previously only available to wealthy investors to the masses.
OpenSea.io, for instance, is the world’s biggest marketplace for trading digital assets such as art, videos, and music (non-fungible tokens, or NFTs). If an investor purchases NFTs and donates them to a registered charity, then their total market value (including capital appreciation) can be deducted from their ordinary income.When it comes to NFT transactions, Ethereum is the currency of choice. The platform facilitated about $500 million in transactions within the past seven days.
The dApp Oasis lets investors pledge over 25 different types of collateral, including ETH, in exchange for asset loans. Asset loans are provided in the form of stablecoins like Dai (CRYPTO:DAI), which investors can use to pay for their daily expenses while their investments continue to compound.
The move also applies in reverse, where people can convert U.S. dollars into DAI and lend them out on Oasis instead of putting them in bank accounts which earn as little as 0.05% interest each year. A smart contract guarantees that the borrower’s collateral goes directly to the lender if the borrower defaults. One can earn up to 5% interest per year.
Last but not least, we recommend KLAYswap, an application that allows you to exchange your major cryptocurrencies for altcoins (decentralized exchanges or DEXs). DEXs offer a wider selection of cryptocurrencies than fiat money exchanges, due to their stricter regulatory requirements.
Additionally, investors can use the native KSP tokens of the blockchain to provide liquidity when trading volume is low, as well as earn commissions like a broker. KLAYswap holds no funds; all transactions occur on users’ wallets, which does not require regulation.
DApps That Make Investing Easier Than Ever
DApps offer a variety of innovative ways for investors to enjoy the tax benefits of art donations, borrow and lend crypto, earn fixed income, or invest in altcoins in hopes of capital appreciation. In addition to the dApps listed above, there are numerous other exciting developments in the burgeoning cryptocurrency market.
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
