More Than Cryptocurrency: How dApp Development is Shaping the Future of Blockchain
This article was written in collaboration with Jack Tanner.
To the average person who is unfamiliar with blockchain technology, the only link they’re usually able to make with the technology is through Bitcoin and other popular cryptocurrencies. In reality, there are a plethora of ways to that a blockchain developer can utilize this technology aside from an ever-fluctuating form of digital tender. For instance, more people are starting to recognize the Ethereum platform as a groundbreaking tool for the development of decentralized applications (dApps). dApps are applications that run without relying on third parties to manage them and thus are high availability and allow sovereign data ownership and censorship resistant just like Bitcoin.
As blockchain technology continues to grow and dApps become more commonplace in various industries, the mainstream audience is beginning to understand the value that blockchain offers beyond the cryptocurrency space. Let’s take a look at how blockchain developers and businesses are using dApps to usher in the new age of blockchain tech.
Beyond Cryptocurrency: How dApp Development is Being Used to Advance Blockchain Technology
While there is certainly a ton of value in Bitcoin and other value-driven coins, the Ethereum platform serves a completely different purpose, and it’s arguably a far greater one. Instead of using the blockchain as a ledger, Ethereum is a decentralized software program that allows blockchain developers to build dApps.
Outside of being a cryptocurrency, Ethereum also has its own high level programming language called Solidity, which allows developers to easily write programs called smart contracts that are executed on Ethereum. Unlike a normal mobile app, which typically relies on a middleman to connect the company with users, decentralized applications eliminate any downtime, potential fraud, or unwanted interference from third-party sources.
In other words, dApps present blockchain developers with an opportunity to develop a different kinds of products with zero downtime and safeguards to defend against manipulation. The smart contracts essentially function as a digital facilitator that can verify the full completion of a credit transaction. As an increasing number of companies integrate Ethereum into their business models, we’re witnessing a staggering amount of applicability for dApps in all types of industries.
Storyblocks: And iPad with an article about Bitcoin.
How Industries are Finding Value in dApp Development
The wide-ranging potential of decentralized applications is slowly being realized as more industries look to adopt blockchain technology. Bitcoin is predominantly used as a ledger, which helps simplify financial transactions while also eliminating poor exchange rates and large fees. dApps built on Ethereum aim to take this concept and implement it into products and services.
From voting systems to encrypted messaging apps, blockchain developers are turning to decentralized applications for security purposes. But there are even dApp games like ETHERCRAFT and CryptoKitties that utilize Ethereum for pure entertainment value.
dApps can also help connect employees to workers, such as Ethlance. This application is an online job board for freelance workers. Since it’s on the blockchain, there’s no single entity that controls the platform, which means that no one will take a cut of the worker’s earnings.
The Ethereum platform is even being used to develop new forms of identity for us. For example, the Ethereum development titan ConsenSys has developed uPort, a dApp that provides each user with a unique identity. Many believe that this application has the potential to become the future of passports, voting on our smartphones, or as credentials for work and other sensitive reasons.
As you can see, the blockchain has much more to offer than just being a new and exciting form of currency. As Ethereum and other protocol-driven cryptocurrencies continue to grow, you can expect even further innovation to take place in the decentralized application space. These exciting prospects are causing hugh interest from business and an unprecedented demand from software developers who can understand and program on the blockchain.