Cryptonomics: What is a Decentralized Application (DApp)?

DApps indistinguishable on the outset from normal applications but with a wholly different feature set and aspirations. Here’s a beginner’s look at DApps.

By
Chung Yee
on
September 19, 2021
Category:
Cryptonomics

DApp: The Basics

A Decentralized Application (DApp) is an application built on a decentralized network that combines smart contracts with user-interface that can function like traditional applications. There are a few inalienable features of every DApp. DApps run on open-source code, are free from third-party interventions, and store their information on a publicly accessible network. 

DApps are a user-centric solution that aims to operate with zero downtime, are invulnerable to attacks and censorship resistance, and preserve data integrity. The problem associated with any decentralized platform is decentralization itself. The absence of a central authority makes updates and protocol changes cumbersome, clunky, and protracted. 

Source: DApp can perform all the functionalities of traditional applications with no censorship and zero downtime.

DApps were first introduced to carry out simple financial tasks but have evolved into something more. They are also an integral component of the crypto metaverse. Because of the adaptability and interoperability of DApps, they can be utilized for any industry, from gaming, medical, finance, governance, and even file storage.

Ethereum was the first blockchain to allow for Dapps, and now they are possible on many chains, including Binance Smart Chain. Uniswap and IDEX are two notable examples of DApps, called decentralized exchanges (DEX). Uniswap facilitates trades between a particular pair of assets, while IDEX is a cryptocurrency exchange that allows for real-time trading. The user experience is no different from traditional applications but with better safety and privacy assurance. For example, no corporation can harvest user data for its benefit. 

Future 


Source: DApps will continue to develop over time with improved functionality, user experience, and intuitiveness.

DApps look to be the foundation for web 3.0 and will likely become an integral part of human life through automation and security. The DApp market was valued at USD $10.52 billion in 2019 and expects to reach USD $368.05 Billion by 2027. The value propositions that DApp promotes are transparency, flexibility, reliability, and scalability. 

Their growing importance will continue in society as more and more blockchain technology becomes integrated. Further integration will be crucial. Integrations into the mainstream, like when OpenSea releases an app on iOS or Android, will help bridge the gap for those new to crypto. Still, it will be major institutional integrations that will help swing weight towards the future.


Tags:
Chung Yee

Chung Yee has a legal background and has been involved in research works for the legal and compliance industry. Writing is his passion, centered on topics such as the blockchain and finance. His largest crypto holdings are Solana, Ethereum, and BNB Token.

Text Link

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.