After introducing smartphones and other gadgets, almost everyone is familiar with the term apps. People use phone apps for games, social media like Instagram and Snapchat, entertainment like YouTube, etc. User’s all needs could be satisfied with mobile apps. Nowadays, a new form of an app is gaining popularity -Decentralized apps.
What are the Decentralized apps (Dapps)?
The decentralized apps use blockchain technology and have fundamental differences from web apps. Standard apps run on centralized servers belonging to that company. In contrast, decentralized apps (Dapps) are developed on blockchain technology. It has decentralized peer-to-peer (P2P) networks.
The most important advantage of the blockchain is that it is a distributed ledger. IT means every participant of the blockchain has a copy of the transaction. No single computer or organization has exclusive access to the data stored on the blockchain network.
The data blocks on the blockchain are immutable, which means it is impossible to change the data stored. Because of this feature, blockchain is more secure and enhances transparency, as it does not hide information.
Categories of Dapps:
Even though Dapps manage and generate tokens, they don’t have to be transaction apps like Bitcoin. Tokens generated by these Dapps are used as a reward system for encouraging nodes to add value to the app.
Type 1 DApps: Dapps, with their own blockchain system, fall under type 1. A popular example is Bitcoin and Litecoin blockchains. We can compare their functionality with operating systems like MAC OS, Windows, etc.
Type 2 Dapps: Type 2 DApps use the underlying blockchain of type 1 apps. They have their tokens and necessary protocols for their functioning. The best example of type 2 DApps is Omni Protocol. It is a distributed trading platform based on the Bitcoin blockchain and ensures trustless, peerless, and effortless exchange of assets or value between transacting parties.
Type3 Dapps: Type 3 DApps are based on the protocol of type 2 applications. The best example of Type 3 Dapps is SAFE NETWORK (Secure Access For Everyone). It is a communication and data storage network that replaces data servers and centers with more facilities for users.
Features of Dapps
1. Open-Source: Dapps are open-source, meaning the codebase is freely available. For changes in the working or structure of the app, approval of most of the participants is necessary.
2. Decentralized: These Dapps adopt a public and decentralized blockchain that stores all the information and operations of the app. This technique ensures transparency and security.
3. Protocol: Protocol is used to show proof of value, ensuring the value of a particular process. It can verify the authenticity of a specific process.
4. Incentive: Dapps offer some cryptographic tokens to the users as an incentive. These tokens are liquid assets and work as an incentive for supporting the blockchain Dapps ecosystem.
5. Scalable: As the Dapps are decentralized, blockchain-based applications, it offers peer-to-peer validation.
6. Availability: As Dapps have a peer-to-peer network, they cannot die or crash entirely from the system. Dapps are always available for the participants.
7. Secured: Because of the adoption of blockchain, smart contracts, and Proof-of-Work mechanisms, Dapps are reliable, trustworthy, and impossible to hack.
Top Decentralized Apps
Even though there as many platforms available for Dapps, the most popular blockchain platforms are Ethereum, EOS, and Tron. Let us discuss these platforms briefly.
Ethereum: ETH or Ethereum is popular for ensuring true decentralization and security. But, in terms of scalability (transaction processing ability at scale), Ethereum is not a good option. For many blockchain projects, including over 2500 Dapps, Ethereum has been adopted. BTH is the native cryptocurrency of Ethereum, which is a version of Bitcoin. Even though it is expensive, it is the best option for developing Dapps.
EOS: EOS has 21 witnesses or validators for verifying the transactions based on Proof Of Stake consensus. They pay the validators for securing the network with voting. With EOS for scalability, rational decentralization is applied.
TRON: Like EOS, TRON also uses the Delegated Proof of Stake consensus algorithm. TRON is a new blockchain platform than Ethereum but has the potential to take the place of Ethereum. For gambling sites and gaming applications, TRON is a famous blockchain platform. Around 1500 Dapps are developed on TRON.
Final Thoughts: After the emergence of blockchain technology and continuous inventions, Dapps are gaining popularity. Dapps offer more transparency and security than web apps. The scope for Dapps is expected to grow in the future once blockchain technology becomes the first choice for techies.
In the following articles, we will explore more about Dapps. Please feel free to comment on the box below if you have queries. Team Blockchain Shiksha would be happy to solve your questions.©
Thank You!
Thanks for clarifying this concept. I heard this term Dapps multiple times but I was not aware of exact concept.
Thanks for such a valuable insight on DApps.
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