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You might hear of decentralized applications or DApp used to create social media, finance, gaming, or web browsing apps. They work similarly to usual applications, and their interface is the same as the regular ones. But the difference is that a single server does not control DApps. With this, it will be harder for anyone to restrict access and control decentralized applications.
Here’s everything you need to know about DApps.
An Introduction to DApps
In its most basic sense, DApp is any computer application that operates through a network of computer nodes. They are digital programs that run using blockchain or P2P computer networks. The name itself means that no single authority controls the application. Being decentralized, DApps are free from a single command interference, making them more resistant to censorship and corruption.
To understand it further, think of Twitter. It operates on a computer system owned by an organization that fully controls its functions. Although one or more users can enjoy the application, it is still controlled by one group. Meanwhile, applications like BitTorrent or Popcorn-time run on computers as part of a P2P network where multiple users consume and feed content.
But not all decentralized applications work on web browsers because some sites might need a customized code to open a certain application.
All changes happening in DApps are applied depending on the users’ consensus. A codebase is needed for the users to evaluate and come up with a decision. Decentralized blocks hold the data and are validated first.
How do decentralized applications work?
Similarly to traditional applications, DApp uses front-end code in rendering a web page. But when it comes to the back-end code, DApp may be different, and this code makes them free from control. A smart contract protected in a blockchain supports DApp, and Ethereum is the most used blockchain type that runs smart contracts.
The blockchain type in which a smart contract operates compiles data records in blocks and spreads in different locations. Generally, the blocks will then undergo cryptographic validation.
Aside from supporting DApps, smart contracts mediate the transactions. It is just a small part of DApp as it only consists of a back-end code. However, it may require combining several contracts and using third-party systems to create the front-end code.
The Benefits Of Decentralized Applications
Blockchain technology has infiltrated the Internet, and its industry value has increased in recent years. With this, businesses should look closer to this new technology as they can use it to their advantage.
Here are the following benefits offered by DApps:
1. A decentralized application is open-source. It means that developments in the application’s ecosystem’s operations will be faster and more secure.
2. DApps can ensure user privacy because users of the applications are not required to submit their personal information.
3. There are no downtime limitations for users because it exists on P2P networks.
What makes DApps special is that there is no central or single point of failure. With this, nodes are independent. A single failing node shall not affect the system’s other ones.
Popular DApp Platforms
Aside from Ethereum, there are many other options for DApp platforms available, like Polkadot, Telos, and Polygon.
First, Polkadot was created by one of Ethereum’s co-founders, Gavin Wood. It is a platform that builds several DApps, making it more convenient to link with decentralized services and institutions. Generally, it aims to address scalability–a challenge usually faced by blockchain technology. It connects private and public networks and serves capital exchanges and raises.
Another example is the third-generation platform Telos. It does not ask for transaction fees to make applications fast and scalable. Additionally, it is an option for social media, DeFi, and gaming industries. It has advanced voting features, and over 100 DApps have been created using Telos.
Meanwhile, there is also a platform that allows you to spend less on Ethereum fees. Polygon is a DApp platform utilized by DeFi pools and embodies powerful sidechain technology. DApp users on this platform can enjoy faster transactions for successful trades.
Examples Of Successful DApps
With the rise of decentralized applications, many of its kind are already considered successful. Some of them are as follows:
Uniswap
Uniswap impressively has more than 400 thousand users. It is considered the leading decentralized exchange on Ethereum and the market. The platform has been continuously improving regarding the exchange’s infrastructure, allowing decreased trading fees.
Bancor
Bancor is the first decentralized exchange protocol, allowing users to trade cryptocurrencies and earn rewards on their holdings without needing to go through a centralized exchange or register for an account. It offers unique features such as single-sided staking and impermanent loss protection.
OpenSea
OpenSea led other platforms to go mainstream. It was launched in 2017 and is the most famous NFT marketplace. Also, it was first built on Ethereum but later added Polygon for cost reasons. Are you in the market for NFTs? OpenSea could be the best place to check.
