I was on Instagram just the other day, and sigh, I had to log in – again! Eventually, I entered my email that links to my Facebook profile.
Then, a thought popped up: “Wouldn’t it be nice if you could sign in to all your accounts with one common profile?”. Just imagine all Web2 applications connected through one main profile, and that too in a decentralized environment!
That’s when I searched “applications with decentralized environments”. And lo! The results stated a common word – “DApp” i.e. Decentralized Applications.
What Is A Decentralized Application?
As the internal architecture is concerned, these applications are programs of code like your other Web2 applications. So, what makes these program codes different from your Instagram, Facebook, Twitter, or Youtube? Decentralization. A feature of Web3 (and Web5).
‘Decentralization’ means to strip the program of authorities and central data services. The decentral application runs on blockchains while sharing and recording data on the public distributed ledger.
Meanwhile, storing information, data, pictures, messages, video, and audio clips occurs at various nodes, with people operating worldwide maintaining consensus.
Functioning Of A Decentralized Application
Most functioning occurs through custom Smart Contracts written in languages like Solidity, Rust, or Plutus.
Consequently, Solidity is the language to write and execute Smart Contracts in Ethereum. And since Ethereums’ Virtual Machine is “Turing complete, programmable software that executes commands” – most blockchains currently make their virtual machines EVM compatible.
So, their DApps can run smoothly relying on smart contracts which deploy on the Ethereum blockchain.
Moreover, unlike hosting an application on a centralized server, DApps are hosted on blockchain networks. These blockchain networks are run by people who work with their systems as nodes. Multiple nodes work together and behave as a server.
As a result, all data entering and leaving the network is not a secret within the company. The data and information are shared, verified, and accounted for in the environment without endangering security.
Furthermore, since the server is a cohort of nodes acting on it together, there are no issues such as being shut off for maintenance or upgrades.
Features Of Decentralized Applications
DApps apart from being Decentral in nature of function are characterized by many features such as:
Open Source: DApps contain open-source codes in their soul. The source code is available to everyone. One can access and develop on top of it. Developers can request edits to make the DApp better.
Incentivization: Operation nodes get paid for their dedicated work at being active at the heart of DApp processes.
Consensus: An algorithm that depicts proof of value in the cryptographic system is necessary for decentralized apps. Because the consensus gives the cryptographic token value and establishes a procedure. Participants utilize the method to produce valuable crypto tokens.
Decentral Nature: The essence of a decentralized application lies in its decentral nature. If it was monitored or governed by a group of people with the power to dictate the organizational events, the project’s purpose would be lost.
Alternatively, there are registered DAOs dedicated to each project such as the TRON DAO, or the MAKER DAO which carry out the necessary calls for the application through democratic voting.
Some of the other features include: Zero ownership, Censorship-Free, Single Incognito Login, In-Built payments, running continuously and forever, and secured by encryption
Use Cases of Decentralized Applications
So, in short, DApps are awesome. But what can you use them for?
Well, you can employ a designer DApp in multiple domains. Some prominent areas are Finance, Arts, Technology, and Gaming.
Within the finance industry, one can employ DApps to handle cryptocurrency exchanges, trade, and investments. A user can crowdfund projects, maintain a financial portfolio, make payments for services, and more. A user can avail of financial services within Web3 without the interference of a third party.
Moreover, Decentralized finance (DeFi) provides other financial services such as lending and borrowing, without the need for a traditional financial intermediary.
Further, in supply chain management decentralized applications can help track the movement of goods through a supply chain. They can trace and update the status at each stage so we can look into upgrades or problems faced in real time.
In Gaming, decentralized gaming platforms allow players to compete and earn cryptocurrency rewards. They can maintain a web3 profile whose details are not shared with a central authority and thus do not face a risk of a privacy breach.
Similarly, DApps can create decentralized social media platforms and maintain decentralized identities. An application in Web3 where users have more control over their data and privacy.
Meanwhile, Governance in Web3 is also decentral. Many DApps are employed to maintain the decentral environment with a transparent platform resistant to manipulation.
Thus, Identity management with DApps becomes very easy. DApps in Web3 give users more control over their personal information.
Overall, DApps provide a new level of decentralization and autonomy to users, enabling them to interact with each other without relying on intermediaries or centralized authorities.
Summary
A Decentralized Application is a software program written to befit the decentral nature of Web3. DApps run on the P2P blockchain network and provide security amidst transparency.
DAPPs essentially function by executing smart contracts and following the code as law. Furthermore, the decentral nature is taken care of by multiple nodes that participate as a server. Thus, the application never crashes and any problems with the application are solved almost immediately.
Consequently, some of the most prominent features are: Open Source, Incentivization, Consensus, Decentral Nature, Zero ownership, Censorship-Free, Single Incognito Login, In-Built payments, Runs continuously and forever, and secured by cryptography.
Finally, the use cases for DApps are present in domains such as finance, gaming, social media, supply chain management, and preserving and validating documents.
These are the many reasons to employ DApps and create DApps in a world with the Web3 revolution. Come, join our DApp-er [DApp Developer] team today!
