Intro to Blockchain: Breaking Down Decentralized Applications

This post is part of a three part series on blockchain. Part 1 included two posts that walked through the history of both the modern internet and blockchain technology.

Part 2 is focused on how the technology works and will include one post on blockchain protocols (which you can find here), this post on decentralized applications, and a third post on the process of raising capital through initial coin offerings. Part 3 will then highlight a few of the most attractive areas for investment in the space. If you’ve enjoyed these posts and want to see more VC-related content, please follow my publication on twitter! Alright, enough of the overview, let’s dive in.

Decentralized Applications (aka DApps)

In my opinion, decentralized applications are where blockchain technology gets particularly interesting. Why? Because they are the first blockchain products that will be truly consumer facing. As a result, they have the ability to bring blockchain technology to the masses rather than to just the early adopters.

What exactly is a DApp?

At a high level, a DApp is an application that uses a distributed network for its back end functionality (i.e. to store information and process transactions), rather than a traditional…