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Tuesday, October 4, 2022

Decentralized Apps in Blockchain

Welcome to whiteboard programming, where we simplify programming with easy-to-understand whiteboard content, and today, I’ll be sharing with you what are decentralized apps or to use the famous shorthand, What is a DApp so let’s get started! Now, with the launch of blockchain, many people are wondering, why pay the middleman like Uber to provide a ride-sharing service when you could use an app that connects you directly to the riders and doesn’t take a cut? Well, that’s the promise being offered by Dapps, or decentralized apps.

Fundamentally, DApps or decentralized apps are applications that are built on distributed platforms with trust distributed among its users and are completely open-source. This means that they are designed to avoid single points of failure and are also more transparent and accountable than existing applications. And further, simply because a traditional App runs on a single network of computers, and a dApp run on top of a decentralised, peer-to-peer network, of which no single entity has complete control,  it will perform its function even if a single node is online in the network.

You must be wondering now, does it carry any impact? Well, many of us who use applications day to day accept that many of our digital assets do not truly belong to us, and are fully controlled by the application owners.

For example, the documents that we upload to websites could easily be taken down or censored by the web host, and we also do not have control over how our data is used by these applications.  With distributed platforms, core parts of the application are run on a distributed network that is publicly accessible and viewable by anyone.

Here, users make use of private keys that grant ownership over digital assets and tokens on this network, which further allows users to have full control and authority over these assets. This open model of development also allows other DApp developers to create competing products that plug into this distributed network,  giving users more choice and control over the way they interact with these applications.  To sum it up, DApps bring back power to the users! Further, to recap, there are certain key features of a decentralized app and any app which suffice these conditions can be considered as a DApp,  1.

They run on the blockchain 2. They are open-source and operate autonomously without any person or group controlling the majority of tokens 3. They generate DAPP tokens to provide value to their contributing users/nodes 4. Users are granted access to them in exchange for tokens 5.  

Miners are rewarded with tokens when they successfully contribute to the ecosystem So, now after knowing this, you can even say that Bitcoin itself is a Dapp, well, it surely rose above the problem of centralized flow of money transfer and allows you to transfer currency without the need of an authority to ensure transaction validity. This feature itself allows it to be called a decentralized application.

And another similar example is Ethereum. So at this point, you might be excited to start using DApps. The good news for you is that there are over 2,000 DApps available in the market at the moment and the industry is growing at a rapid pace.

You can even experience the decentralized world of Dapps by using platforms like Trustwallet and Dapp Pocket  Next, let’s discuss the types of DApps Based on the blockchain model that is leveraged,  decentralized applications can be classified primarily into three categories:

Type 1: These  DApps have their own blockchain, for example, Bitcoin. and other alternative cryptocurrencies with their own blockchain fall under this category.

Type 2: This type of decentralized apps leverages the blockchain of Type 1 apps. These decentralized apps are protocols and have tokens necessary for their functioning. The Omni Protocol is the best example of a Type 2 application. Omni is a distributed trading platform developed on top of the Bitcoin blockchain as a ‘layer’  to facilitate ‘peerless, trustless, and effortless’ exchange of assets or value between parties without involving middlemen.

Type 3: The type 3 dApps use the protocol of the Type 2  applications. The SAFE Network (where SAFE stands for Secure Access for Everyone) is an example of a Type 3 dApp. It is a decentralized data storage and communications network that replaces data centres and servers with the additional computing resources of its users.  You can also consider it as an autonomous data network that enables the creation of censorship-resistant websites and applications.

It leverages the Omni Protocol for issuing SafeCoins that are then used to allow for its functional aspects. Next, let’s discuss What are the key advantages of DApps over traditional apps 1. Without a second thought, it’s Being decentralized,  these apps are tamperproof and the records here cannot be altered. Also, do note that they are highly secure and immutable from hacking, intrusions, and any other potential sabotage  2.

It enables faster payment processing due to the absence of intermediate applications such as the integrated payment gateway for accepting funds 3. It promotes greater anonymity as these applications do not require users to follow lengthy signup processes 4.

It provides reliable data records because users can access the public blockchain to verify transaction information  Further, if you are someone who is interested in building a Decentralised app,  the most popular blockchain platforms for doing so today are Ethereum, EOS, and TRON.  

And lastly, for ease of understanding, you can think of a blockchain as the internet, smart contracts as the World Wide Web, and decentralised applications as websites like YouTube or Facebook.  

With that, I hope this content was helpful to you and served value, if you love my content,  feel free to smash that like button and if you haven’t already subscribed to my channel,  please do as it keeps me motivated and helps me create more content like this for you.

Read More: VeChain Dethrone Ethereum

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