Why do enterprises need to switch to Blockchain-Based DApps?

2018 has been an interesting year for blockchain technology. Despite the “hash wars” raging and sharp decline of cryptocurrencies prices, the interest showed by enterprises in this innovative technology has been growing.

One space in the blockchain sphere that has been highly productive is the Decentralized applications or more popularly known as DApps. Unlike the traditional App, the decentralized Apps connect the users and App publishers without any intermediaries. While the DApps ecosystem is yet to mature, an aggressive adoption is being witnessed by enterprises.

Ethereum is the leading Blockchain development platform with 2551 DApp having 12.09K daily active users. Let us explore the advantage that are driving users and enterprises towards DApps:

Immunity towards hacks

A traditional app has a centralized architecture in contrast to the DApps. For the hackers, it is easy to interrupt the hosting service and attack the traditional App architecture. It has a single point of failure leaving these Apps susceptible to attacks.

For the DApps the backend is the blockchain network. In order to attack the backend, the hacker needs to attack all the hosting nodes which is practically impossible. As an enterprise, if you create your own DApps, it brings forward an impenetrable yet transparent App.

Open Source Apps

As DApps are driven by blockchain, they do not have a centralized authority to govern the developments. It allows the network participants or offers a platform for Blockchain developers to keep track of whatever is changing. A change or upgrade of the blockchain on which DApps are built happens only with a consensus-driven mechanism. So a DApp in an open source App in a true sense.

Incentivizing the users

DApps operate over a peer-to-peer model, where nodes connect to each other directly. All nodes get incentivized for driving transactions based on the consensus mechanism. This garners DApps more active users and infrastructure security as all the validators work towards strengthening the operations of the App.

Transparency

Since, DApps allow transparency, the enterprises are able to maintain data transparency across multiple teams or departments. Again, because DApps are not owned by a single team or department, more trust is built among the users that their data will not be manipulated.

To wrap

DApps are undoubtedly the better version of the traditional enterprise Apps. The advancement of blockchain based DApps in the enterprise sphere is a natural transition as DApps are a self-sustaining asset. Currently, the DApps are ruling the Finance category with 92.27K transactions per month. The figures may not seem impressive for now but the early mover’s advantage is guaranteed. We at Sofocle develop market-ready blockchain solutions for enterprises who want to bid goodbye to the obsolete solutions.