The crypto space keeps evolving, and more innovations are developed which makes for a great crypto experience for anyone coming into the space.
As a user in the space, most of the innovations are simple and understandable such as the DApp. DApps are very fascinating as we will discover in this piece what DApp are, and the role they play in the decentralized ecosystem.
What is DApp?
DApps are simply Decentralized Apps. A DApp usually runs on a blockchain (peer-to-peer network) which implies that it is not run by an individual or a company.
A Decentralized App is an application or program which is built on a network that allows it to be open source to its users. Unlike Apps that are centralized, DApps are public to users through the use of smart contracts.
A smart contract is one that is executed automatically when the terms of both parties involved are met. These terms are written in the code for the contract.
A DApp is never owned by a single entity or facility like Facebook or Google, which own a lot of servers and to which users' data are sent.
There are moments when the servers of apps like Youtube, and Facebook were down for some reason. Although, this downtime for servers of centralized apps mostly does not last for more than 24 hours.
In DApps, there are no server failures as these apps are built on a network of thousands of computers, and data are sent to the blockchain and not a server.
What Are DApps Used For?
- DApps can be used for transactions on the blockchain and thus, removing the need for any form of centralization.
- DApps enables users to write programs and smart contracts which are stored on the blockchain and executed.
- DApps are used for crowdfunding. Crowdfunding is essentially crowdfunding you or a project. This is done with smart contracts to keep everything safe.
- DApps can be used for virtually anything and there are over 2,000 DApps and more are developed every day.
What Are Examples of DApps?
DeFi Apps enable one to lend and borrow money, exchange (Dexes), etc. AAVE is an example of a financial DApp.
These allow you to play games and get incentives depending on the gameplay. Cryptokitties is a popular example of a game dApp and you trade NFTs (the kitties) for profits.
There are a lot of decentralized marketplaces on the blockchain which allow trading. NFTs can be traded and created on Rarible.
Are DApps Different From Apps?
A major difference between a DApp and an app is Decentralization. The use cases of a DApp are also slightly different from apps. DApps are more trusted and secure as they are open source.
Everything done on the DApps is recorded on the blockchain and cannot be deleted, unlike apps that are controlled by entities that can remove or delete anything that is against their terms.
DApps are an innovation to the space and can revolutionalize the way we use apps and our lives in general. DApps should be taken on by everyone.