You have started to invest in cryptocurrency for a while and know how to directly purchase coins from the exchanges. But if you would like to enjoy real benefits from the crypto world, you must learn how to use dApps, a.k.a. decentralized applications. The advantage is it grants you access to all the dApps and you don’t have to make do with limited investment targets in the exchanges. Moreover, most exchanges are centralized which means your assets are controlled by the exchanges and can be rugged if the exchanges run away. Therefore, only when you know how to use dApps and actively manage your assets, you are truly experiencing the freedom and decentralization from cryptocurrency.
What is dApp?
In Web 2.0, we use apps (applications) to chat with friends on WhatsApp, watch videos on YouTube and shop online on Amazon. When it comes to Web 3.0, we still need these applications to complete all the needs above; however, the biggest difference here is the decentralization concept.
In the past, applications are all centralized which means users’ data is stored in the database of every company and controlled by them. These data is exclusive to the internal use and doesn’t share between companies. Hence, it’s possible that a company may leak users’ data or sell it for revenue. And if one day the company goes bankrupt, all the data won’t be able to retreat. Then, here comes the advantage of using dApps: all the data and behavior records are stored on the blockchains. And dApps are all open source, so even developers can’t own users’ data and delete it by any reason. The greatest part is when users use dApps through interfaces and interact with smart contracts on the backend (see the picture below), all the transactions will automatically be executed, which can prevent any human misconducts.
How to use dApps?
1) Register a digital wallet
First of all, you need to register a digital wallet and get a wallet address. As I mentioned earlier, in Web 3.0, because all the data is recorded on the node of blockchains and doesn’t belong to any developers, you don’t have to register accounts and passwords on every website or app like in Web 2.0 to identify who you are. Basically, you can connect wallet on each dApp page through your wallet address and your behavior & transactions are recorded directly. (Due to the character of blockchain, wallet address becomes the user’s identity in Web 3.0) And you can store cryptocurrency in the wallet for gas fees payment when you operate transactions through dApps.
In general, there are two types of crypto wallets including custodian and non-custodian wallet and the ways of using dApps are pretty much the same; therefore, we’re using KryptoGO Wallet, a decentralized multi-chain wallet, to demonstrate the process.
2) Open dApp pages and connect wallet
Find the dApp browser in the wallet. There are several suggested dApps on the main page and you can directly click one or type the URL on the search bar. Once you open the dApp page, it usually asks you to connect wallet.
By the way, dApp browsers are built in the wallet and can’t be existed along, which allowing users to connect to dApps on mobile devices; hence, in Web 3.0, we don’t need to download many apps in mobile phones but use dApp browsers to access every kind of services.
3) Start to invest, swap and use other services through dApps
Simply you use dApp pages just like regular webpages but it gives you more mobility and flexibility. For example, you want to do yield farming on Pancake Swap through the cell phone. Just open Pancake Swap through the dApp browser and connect wallet on the top right corner. And under “Earn” tab, find the pool that you want to inject liquidity. If you don’t have enough LP tokens in the wallet, you need to invest tokens to made LP first. Once everything is ready, click “Enable” to start to invest and confirm the “Sign” information. You can follow the similar process above to operate other DeFi investments, swap services, etc. All of these can be done on mobile devices.
Hope the instructions above give you basic ideas regarding what dApp is and how to use a dApp browser to do yield farming. The advantage of these dApps is decentralized, which offering you asset protection and decreasing the risk of being rugged pull or developers bankruptcy. Furthermore, through dApps, you can access to more underlying targets and services that exchanges can’t provide. To sum up, you must give dApps a try and enjoy the true freedom of blockchain.
If you’re looking for tools to manage NFT assets efficiently, check out my article 3 NFT Tools Help You Manage Collectables More Efficiently