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you know how your phone can actually
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have a bunch of different applications
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there's facebook and instagram and gmail
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and youtube they're basically all
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applications that run code that was
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created by the company so that you could
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interact with their company
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well a dapp or a decentralized
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application
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is very similar in how it works except
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instead of reporting back to facebook
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servers or tick tock servers
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this app reports back to the blockchain
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you're simply interacting with the
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blockchain through the application
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welcome the whiteboard crypto the number
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one youtube channel for crypto education
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and here we explain topics of the
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cryptocurrency world using analogies
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stories and examples so that you can
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easily understand them in this video we
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are going to explain
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exactly what a dapp or decentralized
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application is
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how they work and why they might hold
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the key to the future of the technology
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first we're going to go over some of the
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benefits of dapps and then we're going
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to cover the different types of them
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including a bunch of specific examples
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the first thing you need to know is that
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dapps can only be built
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on smart contract networks this means a
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blockchain like bitcoin
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cannot utilize dapps bitcoin was
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designed to only allow the sending of
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its native coin
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ethereum however can utilize something
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called smart contracts which is code
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that makes up a program so that it can
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be ran
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to do more complicated things you should
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check out our video on smart contracts
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so that you're not confused throughout
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this video
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but in short they allow two people to
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make an agreement written in code
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so that they don't have to trust a third
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party to follow through they can simply
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just trust the code
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another benefit is that since the code
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is out there to be run
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it is what we call open source which
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means anyone can look at the code
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this allows a lot more trust to be given
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to the application
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we can't really look at how facebook
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recommends us friends to interact with
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or how google knows what we ate for
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dinner
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but with any smart contract we can
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actually look at the code
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and see how it works this is a big
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benefit over centralized applications
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next dapps are also censorship resistant
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and this is a fancy way of saying they
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don't have to answer to governments or
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corporations or even specific people
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if the smart contract is coded to do
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something and it's triggered
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nobody can stop it naturally this is
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good and bad
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but it's really important for financial
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applications this way nobody can control
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your money
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in history governments that have done a
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lot of bad things
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have had the control of their citizens
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money there have also been cases where
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facebook or twitter can actually ban
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or censor certain people based on their
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views or opinions
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a decentralized application will not
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allow this unless it's written
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to another big benefit of decentralized
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applications is that they will
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essentially
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never go offline now there's been times
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where i've actually seen facebook or
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even youtube down
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maybe their servers have a bug or
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there's an outage or they simply just do
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not work it's
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usually for a very short period of time
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because there's a lot of money involved
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but technically the government could
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come in and just shut them down since
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dapps run
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on the blockchain they will actually
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never go down because they are run by
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hundreds of thousands of computers
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all around the world it would be
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infeasible to turn them all off if not
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it's impossible
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so now that you know what makes dapps so
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cool let's get into some examples of
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them
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first off let's start off with financial
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dapps
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there are actually many decentralized
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applications that provide a way for
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people to invest in something called
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decentralized finance decentralized
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finance
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or defy is a new monetary protocol that
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uses blockchain to allow investors to do
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new things
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and even some old things with their
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money with a ton of new benefits
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let's go over some of the ways adapt may
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use your money number one
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borrowing and lending so ave is a
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platform that allows a user to deposit
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their ethereum or matic tokens to
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certain smart contracts whenever you
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deposit these coins and tokens
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you can actually receive an interest
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rate on them allowing you to basically
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invest with them
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ave also lets you borrow tokens
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basically if you have enough collateral
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already deposited so without going too
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much in depth
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this allows you to borrow at different
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interest rates and even create
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specific margin positions if you want to
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learn more about ave we've actually
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created a specific video over this topic
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number two is providing liquidity so
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providing liquidity
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is actually a very complicated idea but
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we're going to make it simple
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in short there is not much money in the
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tokens out there to trade
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so investors can come along buy these
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tokens
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and then invest them in what is called a
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liquidity pool which allows other people
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to trade back and forth using their
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tokens
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the traders pay a small fee that allow
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the investors to earn a return for their
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investment
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it's a win-win situation and number
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three are
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exchanges now as i mentioned allowing
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traders to find a way to actually buy
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and sell their tokens is one of the
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issues in the decentralized finance
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world
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exchanges are decentralized applications
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that allow traders to take some of their
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tokens
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and trade them for another token usually
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with really low fees
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almost instantaneously and without
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needing any background checks or
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identification verification
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that was a mouthful but what it means is
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that you can sell a million dollars of
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ethereum
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without anyone blinking an eye or asking
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any questions by the way these exchanges
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are actually called dexes which stands
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for decentralized exchange
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next up on the menu we have game dapps
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now of course there's going to be games
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i mean programmers are the ones creating
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these daps so they're going to find a
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way to gamify the space
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number one is cryptokitties so
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cryptokitties is a decentralized
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application
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that allow you to buy these little cute
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kittens technically what you are buying
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is the nft data of rights to that
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certain token
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that represents the kitty however the
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fun part of this game
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is that you can actually collect a bunch
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of these kittens and even breed them to
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create more kittens
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in the community the older generation
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kittens are usually the most valuable
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and you can actually sell them for a
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profit or maybe sometimes a loss
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if you play the game long enough even
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more so you can actually rent out your
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kitten to breed with someone else's
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kitten
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as a strange form of passive income on
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the blockchain
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number two is something called zed run
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zed is technically a gambling
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application since you buy nfts that
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represent
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racing horses and then race them every
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horse has specific skills and a point
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system
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also every race is recorded on the
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blockchain so you can see
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all of the races including the races
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your horses have won or lost in
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this game actually went viral for a
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while because it combined the
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psychological pulls of gambling
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with the virality of a blockchain game
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number three
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is basically gambling so just like zed
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is technically a gambling app
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there is an absolute massive list of
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blockchain gambling websites out there
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that are technically
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decentralized applications there are
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daps that allow you to play
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games like poker slots roulette even
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simpler games like
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dice rolling or coin tossing in fact you
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can actually code these applications
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so that the house always wins even if
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it's by one percent but people love
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playing these games
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our next category is tracking apps so
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there are actually many
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applications out there that read smart
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contract data
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and information from the blockchain to
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display it to you technically these are
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decentralized applications but they're
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usually centralized and hosted on a
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single web server
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and in most cases don't require the
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blockchain specific code to work
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however they do read the data from the
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blockchain so we thought they deserved a
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spot on this list so zapify is actually
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a website that collects information
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about wallets that you have
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and the displays it all on one page not
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only will it look at all the major daps
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out there and find out how much money or
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coins you have
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it'll do it for many different networks
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as well zapperfy is one of my favorites
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because it's free to use and i can
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actually see
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a dashboard of my entire blockchain
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portfolio in one place
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now you should know there are many
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different applications like zapify but
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we thought we'd share the one that we
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use
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the next category is marketplaces number
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one
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is cryptokitties again even though we
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put cryptokitties in the game category
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it deserves its own spot in the
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marketplace category
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cryptokitties has proven themselves to
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be an asset that people went crazy over
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in the last few years the price of some
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of these cryptokitties has skyrocketed
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and their dap that allows you to buy and
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sell these nft kitties is paving the
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ground
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for mass adoption number two is wearable
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so wearable and
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air nfts are two marketplaces for other
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nfts
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that allow you to buy sell and even
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create new nft art that you specifically
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can sell
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these platforms or applications
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facilitate the process
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and allow the interaction with the
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blockchain so an everyday person can use
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it
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lastly as an example of a marketplace
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app we have bedali
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bedali is a decentralized application
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that allows you to buy things
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using your crypto one of their main
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products is basically
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gift cards which they can actually
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deliver anonymously and very quickly
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remember whenever you buy stuff with
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crypto in the united states at least
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it is currently reported as a sale and
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because of that you have to pay
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taxes although bedali does not report to
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the irs so the liability is in your
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hands
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you may see what we're saying here
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anyways before we get ourselves into
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trouble
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let's move on to the next category which
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is educational
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so this is still an early announcement
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but we are actually currently developing
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our website into a decentralized
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application where you can complete
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quizzes
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watch videos read articles and gain xp
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through your metamask wallet
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once you have enough experience you can
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then mint limited edition nfts through
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our platform if you're interested leave
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a comment if you want to be an early
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tester
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one last dap that doesn't really fit
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into any of these categories is
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something called
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ens ens stands for ethereum name
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service and we actually have an entire
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video explaining how it works
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in short ens turns those long ethereum
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addresses
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into any address that you want for
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example we actually own
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whiteboardcrypto.eth
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so if you send any of your coins or
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tokens there it'll go to
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our wallet now as we in this video you
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need to know that the categories that we
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listed are just the major ones we wanted
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to share
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this space is incredibly new and there
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are new dapps being built
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every day in fact blockchain developers
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are one of the highest paying jobs this
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year
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simply because there is so much money
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being poured into the space
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and there's a lack of people knowing how
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to code it the sky's the limit and we
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truly believe this space has a lot of
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potential
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for positive growth maybe some of the
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best developers that will ever be
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may use our videos as resources to learn
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and be inspired
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at least that's our goal thank you guys
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so much for watching this video
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we hope that you enjoyed it we really
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hope that you learned something
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and most of all as always we hope to see
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you in the next video