DApp stands for decentralized application and is powered by blockchain technology. Centralized applications run efficiently via smart contracts and cut third-party intervention. As smart contracts are used in decentralized applications, therefore, they help to make instant transactions and cut costs. Several DApps are built on popular blockchain platforms like Ethereum, while some are built on Polygon, EOS, Cardano, etc. Some common and popular Dapps are Aave, Axie Infinity, Open Sea, etc.
What are dApps?
Decentralized applications are called digital programs or applications which run on peer-to-peer networks or blockchain networks. These applications are developed for diverse purposes, such as social media, finance, and gaming. As DApp is decentralized, they are free from the intervention and control of a central authority.
What are the features of DApp?
The DApp is an open-source code, meaning anyone can use the DApp platform. There is no central entity or authority which controls the platform. It is a peer-to-peer network that connects users without requiring any intermediary. As cryptographic tokens are used in DApp, therefore, they are a secure and safe network. All the records and databases of the DApp platform are made public and can be easily accessible.
What is the difference between decentralized app and a centralized app?
The decentralized app runs on a peer-to-peer network of computers or blockchain technology and enables people to carry out transactions without relying on any third-party intermediary. The DApp uses source code known as a smart contract which enables people to complete transactions without giving their details. On the other hand, centralized applications are owned as well as controlled by a single authority or company. Some of the popular examples of centralized apps are Instagram, Facebook, Twitter, and Netflix. Financial institutions and banks also use centralized apps to enable customers to access their accounts online. Some popular examples of decentralized apps are Peepeth, MakerDAO, and Cryptokitties.
What are the advantages of using Dapp?
The prime advantage of a decentralized application is that this platform maintains anonymity, and users need not provide their personal details nor sign-up process from users. As DApp operates on a peer-to-peer or blockchain network, therefore, there are no issues with downtime. Even if the user’s computers are down, the network will not get affected. Transactions on the DApp are instantaneous in contrast to centralized apps, as there is no third-party intervention. Therefore, the speed of transactions is very fast. Data records on DApp platforms are reliable and 100% saved since it runs on a blockchain network that verifies the transaction.
The Dapp is decentralized in nature, making records tamper-proof and saving users from cyber hacks, data breaches, and other potential threats. Dapps are censorship resistant since no particular authority governs and controls the Dapp.
What is the future of Dapp?
Although Dapp comes with certain challenges and restrictions, however, they provide a lot more benefits that surpass the challenges. The best thing about Dapp is that it is open source which is accessible to all, and it uses blockchain technology that makes the transactions transparent. Most financial companies have started adopting Dapp technology. The adoption of DApps is constantly growing in number, and even though today, the popularity of DApps is steady and slow, it will see a rapid explosion in no time.
Artem Ilchenko is a seasoned crypto enthusiast with a journey dating back to 2016. With a wealth of experience in blockchain technology, DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens), and the broader cryptocurrency ecosystem, Artem is a passionate advocate for the decentralized future. His deep understanding of the intricacies of blockchain and its innovative applications has positioned him as a valuable resource in the ever-evolving world of digital assets. Artem’s commitment to exploring and promoting the potential of blockchain technology has made him a noteworthy figure in the crypto community.