Going through crypto terminologies, have you ever come across – What is DApp?
In 2019, Dapps’ market share was valued at USD 10.52 billion. It is expected to reach USD $368.25 billion by 2027. With its increasing market share, it becomes crucial to know what are apps; you know how your mobile phone can have a diverse range of applications such as Instagram, Facebook, Youtube, Gmail, and many others. These are all applications that can minimize code developed by different companies to bridge between you and them.
A DApp or a decentralized app is similar to these in its working. Instead of reporting back to Facebook servers, the DApp reports back to the blockchain, or you may say that it interacts with the blockchain through the application. Today, in this article, we will discuss DApps, what they are, and how you can find exciting projects on DApp. So, if you’re someone who keeps a lot of interest in cryptocurrency, bitcoin, NFTs, or Dapps, this article is for you.
So, without any further ado, let’s get into it!
What are DApps?
A Dapp, also known as a decentralized application, can be described as a software application that runs on a distributed chain of different networks. Unlike other mobile applications, a Dapp is not hosted or answerable to any centralized server. On the other hand, it is hosted on a decentralized peer-to-peer network.
A decentralized application or dApp can only be built on smart contract networks. It also means that blockchains, such as bitcoin, cannot use dApp. Bitcoin can only allow the sending of its native coin. Traditional apps are owned and operated by a single party of centralized servers, and dApps are hosted on a decentralized peer-to-peer network. In the cryptoverse, the development of the first-ever cryptocurrency, Bitcoin, was a huge deal that brought unexpected results. It is also considered a pioneer of Dapp technology. Today, dApps or decentralized applications have entered all living spaces and have even opened doors to unmatched opportunities for all sectors.
However, Ethereum can make use of something known as smart contracts, which is a code that together makes up a program so that it can be used to perform several complicated things. Another benefit of Dapp is that since the code is completely out there to run, also known as “open source,” it means it is open to anyone.
Major Application Areas of DApps
All thanks to smart contracts, today, online auctions have become way more transparent than they were earlier. The smart contracts readily record the size and time of the big events, making it easier for the parties involved to make decisions while keeping the manipulation aside.
Gambling and gaming
The online game industry is evolving rapidly, especially after the outbreak of Covid-19 that forced everyone to relive their childhood games. Decentralized applications ensure transparency of bets and offer excellent user applications that come with built-in marketplaces for players to buy and sell their games online using NFTs.
DeFi, a decentralized financial application, is another very popular dApps. It is a system that uses technologies for removing mediators or intermediaries between two parties involved in a transaction. Its distinctive range of features includes accessibility, which means everyone on the internet can access DeFi easily.
DeFi plays a significant role in disrupting blockchain technology. As the financial world is taking a 180-degree turn, whose credit goes to DeFi to a certain extent, this new form of the financial system is outperforming in terms of security and efficiency.
List of Platforms to Explore Dapps
The first on the list is the Dapp Racker. It first came into existence recently in 2018 after the successful launch of another platform with a similar name. Presently, they are handling more than 5,837 dApps on the blockchain network.
Dapp Review is another popular platform currently tracking more than 5000 dApps on the blockchain network. This platform is quite popular among newbies.
The next and last on our list is Dapp.com which is presently tracking more than 3000 dApps on the blockchain network. These include Tron, Ethereum, EOS, IOST, Klaytn, and TomoChain.
Advantages of DApps
Here are the advantages of DApps:
- One major advantage of DApps is censorship resistance. Since DApps are not controlled by any single entity, it is nearly impossible for governments or individuals to control and restrict access to DApps.
- DApps are open-source. This encourages secure and faster development of the ecosystem.
Disadvantages of DApps
Here are the disadvantages of DApps:
- DApps are extremely difficult to maintain, update, and debug.
- As compared to centralized networks, it is hard to scale decentralized networks.
- Since DApps do not work similar to centralized networks, it is difficult for users to get used to a decentralized network.
The Final Words
In the cryptoverse, the development of the first-ever cryptocurrency, Bitcoin, was a huge deal that brought unexpected results. Being able to store data in a decentralized way is another big step that can empower the world in many ways. Today, more and more decentralized applications are launching, and people are taking an immense interest in exploring these areas.
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