The biggest revolution that decentralized peer-to-peer networks has given us (techy guys like myself) was a decentralized economy. By reducing the power and influence of centralized entities, such as big tech companies and governments. This allows for a more transparent, equitable, and democratic internet that promotes fair distribution of resources and opportunities. One of the most well known examples are the Decentralized autonomous organizations (DAOs) which operate on decentralized platforms and are governed by smart contracts. They enable collective decision-making and resource allocation based on community consensus, fostering collaboration, and shared ownership. Nevertheless, we must not make the mistake of assuming that nothing can go wrong. With the power of decentralization comes the responsibility of ensuring we are properly informed and not everyone is comfortable taking their commercial journey into their own hands.
dApps (decentralized applications) are different from traditional applications built on the old Web2 world, as it can directly connect developers with users without the involvement of intermediaries to manage user data and code.
We don’t require permission to build a dApp and no company can change the rules of the platform (Polkadot Governance & Crust Network Governance). The Smart Contract of a dApp runs on a decentralized peer-to-peer network(Blockchain). The graphical user interface, (GUI) of a dApp runs, on a decentralized peer-to-peer network(IPFS), that sends API calls to the Smart Contract.
Components:
- Blockchain (Parachain), decentralized blockchain platform that establishes a peer-to-peer network that securely executes and verifies application code (smart contract).
- IPFS (Crust Storage), hypermedia and file sharing peer-to-peer network for storing and sharing data in a distributed file system.
- Smart Contract (ink!), application code.
- Front-end (React + polkadot.js), graphical user interface(GUI).
- Parachain pipeline, Github workflow
- IPFS pipeline, Github workflow
The smoke test were done using two Rococo accounts with the polkadot wallet extension and a Crust account with the Crust Wallet.
- Rococo accounts
Note: Get some faucets in here.
- Crust account
Note: Get some faucets in here.
Code hash
0xd652cfaae12daf836f684cb0de3a6eefd1c526972d82831542bad2ee566c8f12"
Contract
5EHVMdSM1NNfo26xpGS3BHgQDQmN4iLgSPtAXLBTguCiEMBZ
IPFS pipeline (CID)
CID
QmUTHQLTkdNaUuAQ5T61v35eC5RM48zD4yBw3zjvXxbsoyTest the React App
React app address
https://crustipfs.live/ipfs/QmUTHQLTkdNaUuAQ5T61v35eC5RM48zD4yBw3zjvXxbsoy/?filename=buildNo economic model is perfect. And a Token Economic Model built in code with mathematical rules and governed by a decentralized network who collectively make decisions as a community has also shortcomings. But comparing this with central banks who have the power to print money on a impulse and make monetary decisions without the input of currency-holders. I would choose a Token Economy Model every time.
Technology is the backbone of any token economic model and the way we implement it will influence the incentives and value to token holders, which will benefit or harm all stakeholders in the system. The same thing could be said about a use case that works well for a Deflationary model does not mean that it will work the same for an Inflationary model.
Decentralized applications (dApps) will represent the channel how those tokens will be used by the general public and it will dictated the success of those economics models by its ability to trade goods, services in a truthful, secure and fair way.
References:
Polkadot.js
Rococo Network
Crust Network