What is Decentralized Application (DApp)?
Tags: webdev, blockchain, web3, learning
Published: 2024-06-10 13:17:57

We all do know about different kind of applications, such as a web app, mobile app, distributed app and more. But, in the recent years, a new term is coined in the software development market, which is decentralized application or the DApp. 

The DApp was originally introduced with the introduction of Web 3.0, as it also runs on blockchain technology. And as we are moving towards the new world wide web, you should understand the fundamentals decentralized application. And to know about it, you don’t have to go anywhere else, as all necessary details are provided in this blog. 

So, let’s get started. 

## What are DApps? 
Before we dive directly to the decentralized applications, it’s essentiality to have a fundamental understanding of the centralized application or software. 

So, **centralized application** is a software, whose all operations are defined, handled and monitored by a single entity or authority. These applications are used by everyone on regular basis. The most common example of a centralized app can be any banking, social media, communication, or any other software such as Instagram, WhatsApp, Google Pay and more. 

When you closely think about examples of centralized apps, you’ll realize that as a user, you don’t have any control over the data flow. Rest all is handled by the development authority, like Google manages Google Pay, and Meta handles the Instagram. 

Now, let’s talk about decentralized applications, a complete opposite of the centralized ones. 

A **DApp or a decentralized application** works entirely opposite to the centralized apps. DApp functions on the principles of blockchain technology and are mostly developed for Web 3.0. The features of a DApp can be similar to a normal application, but their logics gets executed using blockchain and smart contracts. 

Further, in a DApp, there is no direct authority that handles the operations. Instead of it, multiple nodes participating in the app usage are responsible for every task. Due to this, DApps are considered more transparent, autonomous, and secure. 

Thus, when blockchain is the primary pillar, then the app is decentralized, otherwise a centralized one. To know it better, you should also undergo the difference between Web 2.0 vs Web 3.0.

## Pros and Cons of DApps 
Following are the top pros and cons of a DApp, that must be known before its development. 

**Pros of a decentralized application**

* Each transaction is recorded using a public ledger, enabling easy transaction verification. 
* The data is not under the control of a single entity. 
* DApps create peer-to-peer to communication channels, enhancing speed, performance and stability. 
* There’s no single point of failure. It ensures that resources are available in every scenario. 
* Decentralized applications are created as open-source software, due to which development time, cost and efforts are low. 

**Cons of a decentralized application**
* Due to open-source nature, the attackers can easily modify them and lead a potential breach. 
* The DApp deployment ecosystem is complex and requires hefty resources to support the operations. 
* DApps are developed mostly for users of Web 3.0. And as you know, web 3.0 is still not heavily used and because of this the user base lacks, impacting the ROI.

## How DApps Differ From Centralized and Distributed Applications? 

If you have thoroughly undergone the very first section of this blog, you must know the difference between a DApp and a centralized app. 
A DApp is not handled by a single authority, but by the number of nodes or users utilizing it. 

On the other hand, a centralized app is controlled by a single authority. The DApp is mainly considered for Web 3.0, where blockchain is the primary base technology. However, centralized apps are preffered for Web 2.0, which is the current web version. 

Now, comes the distributed part. 

Here, the term distributed refers to the application architecture, such as microservices, and docker. In such architecture, different services of an application runs on an individual server using its own resources. But, internally, all the services are connected and communicate with each other. 

It all depend on your specific requirements, whether you want to use distributed architecture or not. But, it’s concisely clear by professionals that both DApp and centralized app can be deployed on a distributed architecture. 

Thus, centralized and DApp can both be distributed application. 

## Top Decentralized Application Use Case 

According to current development and potential of the blockchain technology, following are the top uses cases of decentralized applications. 

**#1: Cryptocurrency Wallets**
We all got to know about cryptocurrency, when Bitcoin came into limelight. You would be glad to know that decentralized applications are used to managed to such digital currency. Whether its dodge coin, Ethereum, Tether, or any such currency, all need a wallet, so that user can send and receive it. 

The crypto wallets are built on the basis of DApps and these wallets are non-custodial. It means that only you have to the access to associated private keys, which are used for conducting transactions.
 
**#2: DEXs** 
Decentralized exchanges or DEXs are the primary way of connecting to a crypto wallet and initiate transaction. DEX is accessed through a web browser, which navigates you to the DApp, offering wallet access.
 
Following it, you reach to the features, allowing participation in lotteries, liquidity pools, NFT sale and purchase, crypto trading and more. 

**#3: Social Media Applications**
The social media DApps are utilized for building communities and facilitate connecting with other high-end organizations and individuals. These application work contrastingly to centralized social media platforms. They don’t save your data and not even utilize it for monetization purposes by showing ads and clicking baits. 

However, social media platforms built upon DApp principles let you own your data and process it in a secure way. 

**#4: Online Games** 
The DApp games are designed to facilitate the users with growing the value of their account. 

The DApp games let user earn NFTs and play in a metaverse. Following it, the NFTs can be sold to other players or buyers in a marketplace. It help the game players to earn some real money and also connect with other players globally in a digital universe, where they can interact as a physical human being. 

It sounds quite Sci-Fi, and in reality, it is much more.

## Wrapping Up
DApps are an avant-garde software solution, that are based on the blockchain technology. Such applications provide you the complete ownership or your data and optimize transparency, security and autonomy. 

With the adaption of Web 3.0 and blockchain, the DApp development is taking pretty good rise. And you will see them for sure in the near future. Rest, decentralized applications are quite advanced, and you should understand them to take an edge over competitors.