Imagine an application that doesn’t operate through a single server but leverages the excess power of thousands of computers from across the world.
Then, imagine it can be automated using computer codes that execute specific functions based on a set of pre-defined parameters without any human intervention.
That is a DApp or decentralized application.
What are DApps?
Decentralized apps are a new type of open-source software program. Its operation is managed by a distributed network of computer nodes rather than a single authority. More importantly, no one can shut down or control DApps.
Blockchain networks that support smart contracts, the first of which was Ethereum, enabled the possibility of a DApp. Other than Ethereum, several blockchains facilitate its development. A tokenized system powers the ecosystem of these applications. Tokens might be DApp-specific, such as the UNI token used by UniSwap, or they can be native to the blockchain that hosts the DApp, such as Crypto Kitties, which uses Ether (ETH).
The DApps are trying to address various issues of legacy apps. The primary advantage of using a DApp is that traditional apps have a centralized storing of data. A single entity controls its servers. As a result, they have a single point of failure. They are vulnerable to technical issues and malicious attacks. Meanwhile, DApps can provide the same level of service while reaping the full benefits of decentralization. Such advantages include near-constant uptime and resistance to censorship and corruption.
There is a wide range of DApps available today. Each has a unique set of use cases. Some examples are gaming, social media platforms, cryptocurrency wallets, and financial applications (DeFi).
Key characteristics of DApps
Open Source
The source code is purposely made available to the public. It means anybody can check, use, copy, and change it.
Decentralized
DApps are decentralized because they run on blockchain networks. No single organization or authority can control it. Instead, DApps work on a peer-to-peer model.
Cryptographically secure
The applications are pretty secure. Every bit of data is captured and stored on a public blockchain. That is, there isn’t just one point of failure.
Benefits of DApps
Security
Decentralized platforms based on blockchain or other distributed ledger technologies eliminate the single point of failure problem found in centralized server-based platforms. Blockchains also leverage robust consensus mechanisms, making them highly resistant to malicious attacks.
Another significant benefit of blockchains is their immutability. It means that information saved on such networks cannot be modified or otherwise corrupted.
Censorship resistant
It is challenging for governments or influential individuals to control the network since there is no single point of failure.
No downtime
Using a peer-to-peer approach ensures that the DApps continue to function even if individual computers or parts of the network fail.
Openness
One of the most significant advantages of DApps is that they are open and permissionless. Since no one controls decentralized public systems such as Ethereum, there is no way to limit access to a specific DApp.
Because all DApps are essentially open-source, developers can build on top of one another’s work. They can combine and recombine different pieces from different projects to create new types of apps and services. This openness promotes innovation and allows the space to expand and adapt in new and often unexpected ways.
Summing up
While blockchain technology is still in its development stages, there is already a strong case for decentralized apps. As the technology matures, the scope of DApp development will expand, allowing for the creation of more sophisticated apps and the emergence of new categories of DApps.
It remains to be seen if decentralized apps can replace traditional apps, although they appear to have a vital role to play in our digital future.
Nonetheless, more and more retail, banking, gaming, and logistics organizations are moving past the exploratory stages. They are taking the lead in developing decentralized applications to either streamline processes, improve security, or improve user experience. It’s just a matter of time until these applications become common.
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