Finance

Building A Dapp Without Extra Costs: Dos And Don’Ts, Pros And Cons

Nabamita Sinha

Finance

Published on: Jan 29, 2024 Last Updated on: Mar 14, 2024

Decentralized applications, or dApps, have gained significant attention in the world of blockchain and cryptocurrency. These applications operate on decentralized networks, providing transparency, security, and autonomy.

Developing dApps can be a rewarding venture, but it’s essential to navigate the development process carefully to avoid unnecessary costs. In this guide, we’ll explore dos and don’ts, as well as the pros and cons, as we show you how to build a dApp from scratch.

Decentralized Applications (dApps): A Brief Survey

With the rise in blockchain technology, there has been higher usage of decentralized applications in recent years. One can easily deduce that decentralized applications (dApps) are the future of digital markets. The design and development of these applications are unique, such that they are easily able to satisfy the privacy and decentralization requirements of modern consumers.

Today, millions of people use apps regularly, and these apps have astoundingly expanded in the last five years.

One of the major features of these apps is that they do not rely on a centralized server. Apart from that, a dApp also does not rely on back-end hardware either to provide services. This unique characteristic of dApps makes them a secure option for consumers as compared to other cloud-based or even offline applications. Furthermore, generally, dApp transactions are also free of tampering.

The following are some of the major characteristics of dApps that you need to be aware of:

They are based on blockchain systems.
There are no censorship or outages concerning dApps.
You will receive top-level privacy by using dApps.
Transactions on dApps are also possible with the help of smart cards.
You can also make use of the functionality of dApps by exchanging native tokens.

Another great advantage of dApps is that you will be able to create Web3 technology. However, some aspects of dApps make them expensive to maintain. Furthermore, in many cases, users also complained about poor UX experience in certain use cases of dApps. This is because, many times, those use cases connect to third-party wallets to gain access to the functionality of dApps.

The Basics Of Developing Dapps

Unlike traditional applications, apps run on blockchain networks, utilizing smart contracts to execute code autonomously. They operate on decentralized networks, often on platforms like Ethereum, Binance Smart Chain, or Polkadot. If you want to create a dApp on Ethereum or a similar network, you must build an app that can handle smart contracts and user interfaces and integrate with blockchain protocols.

Let’s take a look at how to develop apps!

Practical Steps When You Create A Decentralized Application With Blockchain

Firstly, start with a comprehensive plan that outlines your app’s purpose, features, and target audience. A well-thought-out plan helps in avoiding unnecessary revisions and additional costs during development.

Leverage open-source tools and frameworks for dApp development. Platforms like Truffle, Hardhat, and OpenZeppelin offer pre-built components and libraries that can significantly reduce development time and costs.

Then, prioritize smart contract security. Conduct thorough audits to identify vulnerabilities and ensure the safety of funds and data. Investing in security at the early stages can save significant costs associated with potential breaches later.

Plan for scalability from the start. Choose blockchain platforms that offer scalability solutions or consider layer 2 solutions to accommodate future growth without incurring extensive development costs.

Engage with the blockchain community. Platforms like Ethereum have active communities where developers share knowledge, resources, and best practices. Utilize forums, social media, and developer communities to seek advice and solutions.

Don’Ts: Pitfalls To Avoid When You Create A Decentralized App

Don’t overlook best practices when writing smart contracts. Ignoring security measures can lead to vulnerabilities, potentially resulting in costly attacks or exploits.

Don’t resist the temptation to add unnecessary features. While additional functionalities may seem appealing, they can significantly increase development time and costs without necessarily adding value to the user experience.

Don’t disregard gas costs associated with transactions on blockchain networks. Optimize smart contracts and transactions to minimize gas fees, especially when deploying and executing code on platforms like Ethereum.

Don’t underestimate the importance of a user-friendly interface. A poor user experience can lead to low adoption rates and costly updates to address usability issues.

Don’t select a blockchain platform without considering its features, community support, and associated costs. Evaluate different blockchains based on your app’s requirements to avoid potential migration costs later afterward.

How Much Does It Cost To Develop A Decentralized Application (Dapp)?

Once you have developed a dApp, it is also important for you to calculate its cost. The following are some of the major factors that you must consider while determining the cost of dApps:

1. The Dimensions Of The dApp

A simple dApp with basic features for a small company can cost between $2,500 and $25,000. However, if you are developing a dApp for a medium-sized company, it can cost between $25,000 to $200,000. On the other hand, for large companies, the cost reaches as much as $450,000.

2. Industry Specialization

This part includes the domain or industry in which your company specializes since it greatly impacts the quote. For example, creating a real estate dApp is very different from creating a dApp for a healthcare company. Furthermore, you must also be willing to pay more for newer and cutting-edge crypto initiatives. For instance, the cost of a blockchain-based social media network can be almost $100K, while the cost of a financial dApp starts from $50K.

3. Complexity Of The dApp

Some of the primary factors of a dApp include its complexity and number of features. Here are some factors you must consider related to the complexity of the dApp:

The decentralized application’s consensus mechanism.
Platform for building the app.
The combination of blockchain programming languages.
Requirements of UX/UI and API integration.
Implementation of security protocols and authentication procedures.

Pros Of Building A Dapp Without Extra Costs

There are perks if you can build a dApp without extra costs:

Cost Efficiency: Developing a dApp without incurring unnecessary costs ensures that resources are utilized efficiently, maximizing the return on investment.

Community Support: Engaging with open-source tools and the blockchain community provides access to valuable resources, knowledge, and support, contributing to the success of the dApp.

Security Focus: Prioritizing smart contract audits and security measures from the outset reduces the likelihood of costly security breaches, safeguarding user funds and data.

Scalability Planning: Planning for scalability at the beginning helps the dApp handle increased user traffic without requiring extensive modifications, saving time and resources.

Cons Of Building A Dapp Without Extra Costs

There’s always a trade-off when you cut costs.

Firstly, this includes limited features. Strict cost considerations may limit the inclusion of certain features, potentially impacting the dApp’s competitiveness in the market.

Plus, cost-effective development may take longer due to reliance on open-source tools and community support, which might not offer the same speed as dedicated, proprietary solutions.

And, of course, prioritizing cost efficiency over user experience may result in usability challenges, potentially affecting user adoption and satisfaction.

Conclusion

Developing dApps can be a minefield of do’s and don’ts, as well as other considerations and trade-offs… each with its pros and cons. Plan carefully, with the right team by your side, and you can succeed.

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Nabamita Sinha

Nabamita Sinha loves to write about lifestyle and pop-culture. In her free time she loves to watch movies and TV series and experiment with food. Her favourite niche topics are fashion, lifestyle, travel and gossip content. Her style of writing is creative and quirky.

What Is The Current Ratio Formula? – Meaning, Interpretation, And More

The current ratio formula is used to calculate the current ratio of a business, This ratio gives an idea of the company’s capacity to repay its short-term loans that are due within a year. This ratio is really helpful for investors as it tells them about the company’s ability to meet its financial obligations. The investors thus evaluate whether the company is financially sound as compared to other competitors and stocks. ‘In this article, you will learn about what the current ratio means and how to calculate it using the current ratio formula. Apart from that, we will also give you tips on how to interpret the situation of a business using the current ratio formula. You will also learn how the current ratio works in general. Finally, we will discuss some of the major pros and cons of using the current ratio formula to calculate the situation of a business. What Is A Current Ratio? According to Investopedia, “The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables. A current ratio that is in line with the industry average or slightly higher is generally considered acceptable.” However, if the current ratio of a company is lower than what is expected on average from the industry, this indicates a higher risk of distress or default for the company. On the other hand, if a company has a very high current ratio as compared to its competitors in the same industry, this shows that the company might not be using its assets in an effective manner. There are various other liquidity ratios that investors use to calculate the situation of a company. Unlike other ratios, the current ratio makes use of all current assets and current liabilities. That is why the word ‘current’ is used here. It is also called the working capital ratio. Read More: Disaster Recovery Vs Business Continuity – What Are The Differences? Current Ratio Formula - How To Calculate It? According to Wall Street Mojo, “The current ratio equation is a crucial financial metric that assesses a company’s short-term liquidity by comparing its current assets to its current liabilities. A ratio above 1 indicates the company can meet its short-term obligations, while below 1 suggests potential liquidity issues. It aids in evaluating a firm’s financial health and ability to cover immediate debts.” Here is the formula with which you can calculate the current ratio of a company: Current Ratio Formula = Current Assets of the company / Current liabilities of the company The current assets of the company are listed in the company’s balance sheet. It consists of the following: Cash Accounts receivable Inventory Other current assets (OCA) that the company expects to liquidate or turn into cash within a year The current liabilities of the company are also listed in the company’s balance sheet. It consists of the following: Accounts payable Wages Taxes payable Short-term debts Current portion of the long-term debt Interpreting Using The Current Ratio Formula Based on the end result of the calculation, it can mean different things for the company. Here is how one can interpret the current ratio based on the results of a company: If the Current Assets of the company are greater than the Current Liabilities, then the Current Ratio is greater than 1. This shows a desirable situation for investors and the company. If the Current Assets of the company are equal to the Current Liabilities, then the Current Ratio turns out to be exactly 1. This shows that the company’s Current Assets are not enough to pay its short-term obligations. If the Current Assets of the company are less than the Current Liabilities, then the Current Ratio is less than 1. This creates a problem for the company since it does not have enough assets to pay for its short-term obligations. Investors mostly do not prefer to invest in such companies. How Does The Current Ratio Work? According to TheForage.com, “The current ratio describes the relationship between a company’s assets and liabilities. So, a higher ratio means the company has more assets than liabilities. For example, a current ratio of 4 means the company could technically pay off its current liabilities four times over. However, what makes a good current ratio depends on the industry.” In general, if the current ratio of the company stays between 1 and 3, it is an ideal situation for the company to get investments. However, there are certain business models and industries that operate perfectly fine with lower ratios. What Are The Pros And Cons Of Using Current Ratio? The following are some of the major pros and cons of calculating a company’s capability using the current ratio formula: Pros Of Using Current Ratio Here are the major pros of using the current ratio formula: It helps in understanding how cash-rich the company is It helps in gauging the short-term financial health, and stability It gives an idea of the operating cycle of the company and how efficient it is in selling off its products A greater value shows the efficiency of the management Cons Of Using Current Ratio Here are a few cons of using the current ratio formula: It is not sufficient to analyze the financial situation of the company. The inclusion of inventory may lead to overestimation. The ratio can be unstable during seasonal sales period. A change in the inventory valuation method impacts the ratio. Read More: Matrix Organizational Structure – What Are Its Pros And Cons? Wrapping Up Hope this article was helpful for you in getting a better understanding of how the current ratio formula works for businesses. It basically compares all the current assets of the company to its current liabilities. These assets have high liquidity, that is, either they are already cash, or they can be turned into cash within a year. These can also be liabilities to be paid within a year. Calculating the current ratio helps investors get a better understanding of whether a company is able to cover its short-term debts with its current assets. Investors also compare this value with other competitors in the industry. Can you share some more applications of the current ratio formula? Share them with us in the comments section below. Read Also: Why Business Continuity Planning Is Essential For Your Company? Business Risks – How To Identify, Manage, And Reduce Them? The Best Risk Mitigation Techniques For Your Business

Managing Fixed Assets: Accounting Techniques For Long-Term Success

Fixed assets, often the largest investment for a business, play a vital role in an organization's financial stability and growth. Managing them properly through well-crafted accounting techniques ensures that they contribute positively to the company's long-term success. This article will explore various strategies, methods, and best practices for effectively managing fixed assets within an accounting context. Understanding Fixed Assets Fixed assets are long-term tangible assets that a business utilizes to generate income, such as buildings, machinery, equipment, and vehicles. Unlike current assets, fixed assets are not intended for sale within the regular business cycle but are instead used over several years. The proper management of these assets is essential for accurate financial reporting and strategic planning. Depreciation and Amortization One of the critical aspects of fixed assets accounting is understanding depreciation and amortization. Depreciation is the gradual reduction in a tangible asset's value over its useful life, while amortization applies to intangible assets like patents or licenses. Calculating and recording depreciation accurately is vital for reflecting the actual value of assets on the balance sheet and for determining tax liabilities. Implementing Proper Tracking and Control Effective management of fixed assets requires meticulous tracking and control. This involves regular audits, documentation, and utilization of technology to ensure accuracy. Asset Tagging and Monitoring Assigning unique identification tags and employing tracking software helps in monitoring the location, condition, and utilization of assets. Regular physical verification ensures that the records align with actual assets, preventing discrepancies and fraud. Integration with Accounting Systems Fixed assets accounting must be seamlessly integrated with the overall accounting system. This allows for automated updates, reducing manual errors and providing real-time insights into the assets' status. Ensuring Compliance and Reporting Compliance with various regulatory standards and accurate reporting are paramount in fixed assets accounting. Adherence to guidelines such as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) ensures transparency and builds trust with stakeholders. Regular Review and Reconciliation Regular review of fixed asset registers, reconciliation with financial statements, and adherence to legal requirements ensure that the organization is compliant with all relevant laws and regulations. This not only minimizes legal risks but also provides an accurate representation of the company's financial health. Investing in Technology and Training In today's fast-paced business environment, investing in the right technology and training personnel is essential for efficient fixed assets accounting. Utilizing Fixed Assets Management Software Advanced fixed assets management software offers features like automated depreciation calculation, asset tracking, and reporting. Investing in a system that fits the organization's needs simplifies the management process and enhances accuracy. Training and Development Ensuring that the team responsible for fixed assets accounting is well-trained and updated with the latest industry standards and regulations is equally important. Regular training sessions, workshops, and certifications enhance competency and foster a culture of continuous improvement. Selecting the Right Fixed Assets Accounting Method Choosing the appropriate accounting method for fixed assets is a crucial decision that can have a lasting impact on financial reporting and tax liabilities. Various methods can be applied, each with its own set of rules and implications. Selecting the right method depends on several factors such as the nature of the asset, the industry, and the financial goals of the organization. Here's a list of common accounting methods used for fixed assets: Straight-Line Method: This method spreads the asset costs equally over its useful life, providing a persistent expense in depreciation every year. Double Declining Balance Method: This approach accelerates depreciation, with higher expenses in the earlier years of the asset's life. Sum-of-the-Years-Digits Method: A more complex method that also front-loads depreciation but at a different pace compared to the double declining balance. Units of Production Method: Depreciation is calculated based on the asset's actual usage or production. It is suitable for machinery or equipment with variable usage. Understanding the advantages and disadvantages of each method, aligning them with the company's operational dynamics, and seeking professional guidance if necessary, ensures that the chosen method reflects the economic reality of the fixed assets, complies with relevant accounting standards, and supports the organization's strategic objectives. Conclusion Fixed assets accounting is more than just numbers on a balance sheet; it’s a strategic component that directly impacts an organization’s long-term success. Every aspect contributes to effective management, from understanding depreciation to implementing robust tracking systems, ensuring compliance, and investing in technology and training. By adopting best practices and staying abreast of changes in regulations and technology, businesses can leverage fixed assets as valuable resources, driving growth, stability, and success in an increasingly competitive market landscape. Read Also: 5 Most Common Human Errors In Crypto Accounting What Is Salesforce Sales Cloud? – Let’s Find Out In Details Goldman Sachs’ Profit Takes A Big Hit By Slowdown Of Trading And Retail Banking

How To Earn Money With PancakeSwap

Decentralized finance (Defi) has grown in popularity globally, which is why more and more people looking for investment opportunities want to know more about them. One of the fast-rising markets in Defi is the decentralized exchange (DEX) platforms, which have become sought-after as they offer investors convenience, autonomy, inclusion, and speed. These platforms also show significant growth potential, so many people have become more open to exploring markets supported by blockchain technology. Binance Smart Chain, one of the leading blockchain markets in the crypto world, has recently launched a DEX trading platform called PancakeSwap. PancakeSwap, an automated market maker (AMM), permits the exchange of two tokens on the Binance smart chain. The liquidity in PancakeSwap will enable users to exchange their currencies without intermediation. Likewise, users can earn money through transaction fees and platform tokens when they invest in token farming or CAKE Syrup Pools. 9 Tips To Earn Money With PancakeSwap If you’d like to know how to take advantage of this opportunity and earn a side income through PancakeSwap, continue reading this article. 1. Familiarize Yourself With PancakeSwap You can use the PancakeSwap platform through its official website. However, you’ll only be able to access all features completely when you unlock the wallet. By clicking on this option, you can choose your crypto wallet and sync it with the website. Once done, you’ll see several tabs that lead to the exchange, liquidity, and earn pages. The exchange tab is where you exchange your cryptocurrency for tokens, such as BNB, the main currency on Binance Smart Chain. You can use BNB to purchase CAKE, a token mainly used in PancakeSwap. Meanwhile, the liquidity tab shows the tokens you’ve gained as you deposit crypto into a PancakeSwap pool. You can choose from various pools, and you can deposit your crypto funds on several pools at a time. Other essential information about PancakeSwap that you’ll need to start investing in the platform can be seen below: 2. Token Farming Farming is a way to provide liquidity to two tokens, which means that they’ll be available for exchange into other tokens. When farming, you must choose two cryptocurrencies you own and stake them in pairs. Some examples of pairings you can consider are as follows: CAKE – BNB LPUSDT – BUSD LPDAI – BUSD LPBETH – ETH LPLINK – BUSD LPTWT – BNB LPUSDC – BUSD LP The token pair you stake is converted into a liquidity provider (LP) token. LP tokens are put into the farm, and you start gaining CAKE. 3. Syrup Pools Syrup Pools is recommended for newbies in PancakeSwap. In this staking channel, you’ll only need to stake CAKE and earn CAKE in return. You also can join auto pools wherein your earnings will be reinvested in the pools, allowing you to earn from what you’ve initially gained. 4. Investment Risks The risk of investing your CAKE funds in pools is that your earnings can be affected when the value of CAKE suddenly drops, and you’re left with many. However, the reverse can also happen, allowing you to earn significantly when the value increases. Meanwhile, farming commonly offers better results, though it comes with the risk of impermanent loss. This type of loss occurs when the value of the pair or individual tokens changes. When this happens, it’s possible for your initial capital to depreciate, which is a common scenario when investing using any form of digital currency. Given this, the investment return usually outweighs the risks for many investors, which is why PancakeSwap continues to gain popularity. 5. Prepare Your Resources Once you’ve familiarized yourself with the terminologies and processes involved in PancakeSwap, you can gather your resources and start investing to earn money. To begin, you’ll need to open a cryptocurrency wallet or have one ready and connect it to your PancakeSwap. Once connected, you can now access more features in the PancakeSwap, including those you’ll need to start staking and earning. You can proceed to purchase BNB, which is required when you transact in PancakeSwap. After you have a sufficient amount of BNB, you can begin to explore your investment options on the platform. 6. Buy CAKE with BNB After purchasing BNB, you need to determine how much of your funds will be swapped into CAKE and how much will be retained on their original token forms. Your selection may depend on how you intend to invest. For instance, farming your tokens may be easier if you swap your BNB to CAKE and keep the rest as they are to make an equal number of pairs of tokens. If you intend to pool, on the other hand, you can exchange any amount of BNB for CAKE and proceed to make your investment. 7. Stake In Pools Select a pool you’d like to stake your tokens in. To pick the most lucrative one for investment, you’ll have to do your research and compare growth potential. You can also consider auto pools if you’d like to keep your investment in a specific pool for a longer duration as it will automatically allow you to invest your earnings back into the pool. Doing so in the long term can help you yield better investment returns. 8. Farm You can also choose to farm your tokens to earn money in PancakeSwap. To start farming tokens, exchange the tokens you currently have for LP tokens in the Liquidity menu. Afterward, choose the ‘Add Liquidity’ option to select the token pair you want to use for farming. Then, select ‘Enable’ on the corresponding pool and use the add button to determine how many LP tokens you’ll add to the pool. 9. Harvest After accumulating enough CAKE, you can harvest or claim your earnings by depositing them into your wallet. There may be transaction fees involved when you do so, so you’ll need to select a good time to withdraw your tokens. Conclusion While it’s relatively new to the digital market, PancakeSwap offers a promising opportunity for newbie crypto investors to grow their money. This AMM is considered to be beginner-friendly, and it allows users to earn rewards easily. Moreover, it has a growth potential worth taking a chance on, so it’s wise to act fast and grab the opportunity as early as possible. Additionals How To Build An Ecommerce Website To Boost Your BusinessHow To Start A Dropshipping Business In 2021 – A beginners GuideCumrocket Crypto Price: Where To Buy Cummies (Cumrocket) Cryptocurrency?Is Dropshipping Legal? Things You Have To Considered When Doing Dropshipping In 2021

Pro Rata: Definition, Uses, And How To Calculate It?

Pro Rata is a Latin term that means “proportionally.” In business, pro rata is a fair and equitable distribution method. With the use of this method, each concerned party receives a share that is proportional to their entitlement and contribution. This ensures that there is fairness in the company’s distribution process. Based on a party’s proportionate participation in business, the pro rata is used to calculate the reimbursement amount. In this article, you will mainly learn about what is pro rata in business and how to calculate pro rata distribution using the formula. You will also learn about the ways in which pro rata works for businesses and how this formula helps in distributing reimbursements for participation. Finally, we will share with you the major uses of the pro rata distribution formula. Hence, to find out more, read on through to the end of the article. What Is Pro Rata? According to Wall Street Mojo, “This method is especially useful for calculating gains and payments for short-term or partial periods. In addition, it can be applied in various scenarios where proportionate distribution is necessary, including computing hourly wages, expenses, investment profits, and other liabilities.” If the company gives out something on a pro-rata basis, it will basically be assigning the amount or reimbursement to one person as per their share out of the whole amount. This type of calculation has a variety of applications in business finance, as it can be used to evaluate the appropriate portions of any amount of capital. How To Calculate Pro Rata? - Formula Here is how you can calculate pro rata distribution for any given amount: Pro Rate Share = Number of “True” Items in place / Maximum Quantity Possible Therefore, Pro Rata Distribution = Pro Rata Share x Quantity of Related Item To effectively use the formula, here are the things you can do: 1. Gather Necessary Data If you want to calculate pro rata, you will mainly need to gather three data points - the number of “true” items in place, the maximum quality of total items, and the quality of related items. Consider a situation where a tenant pays rent for 15 days in October. Hence, the number of “true” items in the rent is 15. However, the maximum quantity of total items amounts to 30 (the number of days in September). The quantity of related items, in this case, is $600, which is nothing but the monthly payment of rent. 2. Calculate Pro Rata Share To calculate the pro rata share, you will have to divide the number of “true” items in place by the maximum quantity of total items. Using the same example as above, you will need to calculate 15/30 (for the month of September), and you will get 50%. This percentage is the portion of rent that the tenant owes to the landlord. 3. Calculate Pro Rata Distribution To calculate pro rata distribution, you will need to multiply the pro rata share with the quantity of related items. In the example, the pro rata share came out to be 50%, and the quantity of related items is the monthly rent’s monetary value, which is $600. Once you multiply both, you get 50% of $600, that is $300. This is the amount of the rent that the tenant owes to the landlord. How Does Pro Rata Work? According to Investopedia, “Pro rata calculations can be used in many areas, including determining dividend payments, which are cash payments by corporations paid to shareholders. In insurance, pro rata is used to determine the amount of premium due for a policy that only covers a partial term. Allocating the appropriate portion of an annual interest rate to a shorter time frame can also be done via pro rata.” Basically, you can evaluate the proportionate allocation of a fixed amount. If you know how to calculate this figure, you can easily solve issues related to the payment of dividends. Apart from that, it will be helpful for you to determine insurance premiums or calculate part-time salaries. It can help you to determine fair distribution of a fixed amount in hand. When To Use Pro Rata? According to Indeed.com, “Pro rata is practical for business purposes regarding expenses, revenue allocation, capital and other financial scenarios that involve giving or receiving money from one individual or entity. Businesses use pro rata to ensure they accurately and fairly analyze and distribute financial figures. Businesses may also use pro rata when calculating the salary of a part-time employee.” The following are the major uses of pro rata distribution in business processes: Businesses use the pro rata method to pay out dividends or cash payments to shareholders in the organization. It helps to allocate the right portion of yearly interest in case the time range is less than one year. The system also helps to discern the total amount of an insurance policy premium after paying for a partial insurance term. It also helps to calculate the salary of a part-time employee as compared to what that employee would make with a full-time salary. You can also divide certain expenses of businesses among a certain number of stakeholders within a set period of time. The system helps to calculate loan payments on a monthly basis as compared to annual payments. Based on the work and needs of different departments, you can plan a project budget to incorporate expenses. Wrapping Up Pro Rata means everyone gets their fair share - everyone gets their share as per the input they have put into the work. It basically works in sharing dividends with investors based on the proportion that they have invested in the business. This technique has applications in many areas, from billing for services to allocating business partnership income. You can calculate the pro rata amount of an item by dividing the instance of that item by the maximum quantity of that item. You can then apply the ratio to any related item to find the same proportion. Do you have any more to add regarding the application of the pro rata system? Share your thoughts and ideas with us in the comments section below. Read Also: What Is An Angel Investor, And How Does Angel Investing Work? What Is A Venture Capitalist, And What Are Their Functions? 10 Must-Have Entrepreneurial Characteristics

Building A Dapp Without Extra Costs: Dos And Don’Ts, Pros And Cons

Decentralized Applications (dApps): A Brief Survey

The Basics Of Developing Dapps

Practical Steps When You Create A Decentralized Application With Blockchain

Don’Ts: Pitfalls To Avoid When You Create A Decentralized App