What Are Decentralized Applications (dApps)?
Tags: Decentralized Finance, Decentralized Apps, Decentralization, Dapps, Blockchain

DApps(decentralized apps) are a new type of software application run on a distributed computing network, and nobody has control over them. In terms of the user interface, decentralized apps look the same as any website or mobile app we use today.

In simple terms, DApp is an application in the blockchain. To understand what DApp is, let’s first give you a little bit of information about Ethereum. Ethereum is a software platform that enables developers to create and run “smart contracts” using the Turing-complete Ethereum Virtual Machine (EVM) over a Blockchain network. EVM allows code to be validated and run on the blockchain. When you create your smart contracts with Ethereum, you’re writing a piece of the backend code for your Dapp. “Smart contract” is a computer program or a transaction protocol. The language in which “smart contracts” are written is called Solidity. It contains lines of computer code. This code automatically performs certain actions when the required conditions had met.

The two main features of DApps:

Open-source — DApp must be open source and have an autonomous governing system without controlled by any institution or entity. As defined in the consensus protocol, all changes must decide by the consensus of the majority of users. Because it is open-source, anyone can easily access and contribute to the network. It encourages the widespread development of the DApp platform. It also allows developers to create better Dapps with more useful or interesting functions.

Decentralized — DApp built on decentralized technology. All transaction records filed in a public and decentralized ledger (Blockchain). DApps ensure that control does not come into a single, centralized entity or company.

Types of DApps

Apps that manage money — These types of DApps require the validation of contracts between the parties via digital currency. Ethereum, for example, has a smart contract. When the terms of the agreement had met, the smart contract verifies itself. But this must first be controlled by all nodes in the blockchain network. The user may have to exchange the Ether(the currency of Ethereum) with another user to reach an agreement.

Apps requiring money and variable information — These type of applications combines money with information outside of the blockchain. Besides crypto tokens, some protocols also are required for such kinds of apps. For instance, you have to consider the price of a product and the distance between the two parties if you have a product delivery app. Here, the distance between the two parties is the variable data or bring up-to-date information from the outside.

Apps managing voting and government system — DAO (Decentralized Autonomous Entities) is a system introduced by DApps. When two or three parties try to pursue a common goal, they apply to these entities. They are bounded by a smart contract for management without any leader.

How Does a dApps Differ From Traditional Apps?

We are in an era where we are increasingly using portable devices. We are even solving certain activities such as communication, entertainment, and banking in these applications. For this reason, we are looking for more features in technological innovations. Decentralized apps have some features that traditional apps don’t have. The main difference between apps and DApps is that DApps are the interface for some decentralized code recorded on the blockchain. On the other hand, with some code saved in the cloud, apps are an interface between programs. Below we have mentioned a few different features of dApps.

New types of digital assets and money creation

Unstoppable and uncensored web applications

Creating decentralized organizations or virtual worlds governed collectively

There are many decentralized applications (DApps) you can use today. BAT, Golem, Minds are some examples of them.

Basic Attention Token (BAT): creates an ad exchange marketplace in a decentralized way. BAT using in the Brave browser. It improves privacy and value transfer between users, publishers, and advertisers.

Golem (GNT): used by one or many distributed computing nodes for run code and bring mass computing power to the crowd.

Minds: is a reward-based social networking service. The platform enhances the transfer of value between creators and consumers of content.

To conclude

DApps are interference-resistant. It is not possible to change records on the network. They are also highly secure and immutable against hacking or other potential system crashes. Due to the absence of intermediate applications, they allow faster payment processing. Because they do not require long registration forms for users to complete, DApps provide greater anonymity. With its essential features like these, it is only a matter of time before DApps become mainstream. In brief, dApps have the possibility to change how people interact with web applications in the future.