Understanding The World Of Crypto, NFTs, Dapps, DeFi, DEX, And Blockchains

Decentralization is the key feature of cryptocurrency and its underlying technology. So it might surprise you to learn that most cryptocurrency transactions go through centralized exchanges. Centralized exchanges generally offer a higher degree of reliability and, more importantly, there is a company that you can hold accountable for the execution of your transactions. Most (not all) centralized exchanges must comply with “know your customer” rules and comply with at least some regulatory requirements.

Decentralized cryptocurrency exchanges (DEX) allow users to execute transactions without an intermediary. They are “decentralized.” This makes DEX transactions attractive to those who wish to keep their trading activity private. Generally speaking, DEX transactions are crypto-to-crypto. Decentralized exchanges do not facilitate transactions between crypto and fiat currencies.

Digital Wallets

You will need at least one crypto wallet. Do your research. Each wallet has pros and cons, and no single wallet is right for everyone or for every application. There are dozens, if not hundreds, of crypto wallets available. 

Engineering Resources

If you’re completely new to distributed ledgers, smart contracts, and crypto and want to write some code, there are many wonderful free resources available online. Here’s a list of some excellent smart contract frameworks and other helpful engineering resources.

Dapp and DeFi Assets

DeFi (Decentralized Finance) platforms are the underlying technologies that enable financial services to be offered with no central authority. Dapps (decentralized applications) are the apps that make the blockchain (distributed ledger ecosystem) run.

There’s So Much More

Over the next few weeks, I will take a deeper dive into each of these areas. The best way to use this article is to visit the main resource page and read through the websites and information pages that interest you.

1 2
View single page >> |

Disclaimer: The information provided has been gathered for your convenience; it should not be considered financial advice of any kind. We do not endorse any of the companies listed herein. We ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.