This has brought to the forefront a new type of application which does not confine in its ownership and cannot be shut down, along with zero downtime.
These are called Decentralized Applications, or DApps. There are more than 2432 Decentralised Apps in circulation, although their mass adoption is not yet up to expected levels.
How does a DApp work?
These DApps are built on blockchain development, which is a globally distributed ledger. This gives DApps their decentralized structure and does not control their ownership – something similar to what Bitcoin did to money.
In all its essence, a DApp is nothing but an open-source software platform that implements decentralized blockchains fueled with tokens made using algorithms.
Which Blockchain is suited for DApps?
Ethereum DApps are extremely popular, with developers running them on the Ethereum platform. Ethereum DApps are based on coded smart contracts which in turn act as the blueprint for the DApp.
Bitcoin in itself is considered by some to be the ultimate example of a DApp, while others see it as a possible means to an end. With Ethereum DApps, developers need not create separate blockchains, which saves them time and effort with more thinking of being put into the functionality of the DApp. Ethereum DApps use Solidity as a language to come up with smart contracts that prevent unauthorized access and other security concerns.
With Ethereum DApps being tested frequently and EOS DApps being adopted quite frequently, it is a race to see which one wins in the end. There are a number of DApps already in existence, proving that DApps are indeed the future.
Like Ethereum Name service, they allow users to convert their wallet address into a unique domain name while decentralized exchanges like Kyber Network help in connecting to a widely distributed ecosystem.
Another significant DApp is MakerDAO with its Collateralized Debt Position providing users with the option to take a loan in exchange for Ethereum as collateral.
Another example is Storj.io – an Ethereum DApp that serves storage purposes. It allows users to rent storage capacity by connecting them to others who have the same in excess for a fraction of their Dropbox and brokering a peer-to-peer exchange with payment in Storjcoins.
Even the Bitcoin protocol can be used to draw up smart contracts and come up with Bitcoin DApps, as proven by Particl.io, which is a blockchain-based eCommerce platform. It comes with a perfect blend of exceptional contract functionality while bypassing the privacy and security risks of Ethereum and similar platforms, making Bitcoin DApps quite possible in the near future. The MAD escrow technique is used for anti-fraud purposes
These Ethereum and Bitcoin DApps essentially increase in value when that of the cryptocurrency goes up, which occurs when users exchange more tokens.
Go Decentralized – Protect Your Information
It is no wonder that people are increasingly fond of the idea of decentralized apps, especially in a world where most applications like Google, Uber or Facebook own, and at times even give out, user information without much thought. In such a world, protecting your information while sharing your resources and being paid for it (or paying a lower price) is an appealing idea.
With decentralization bringing in a lot of fans, it remains to be seen what the future holds. Even though the number of DApps is increasing at a rapid rate, it remains to be seen if these DApps see a quick surge in usage or whether they fall into the hands of a few.
Did you enjoy this article? Please share any feedback about DApps on our social networks. To join our member list and receive additional cryptocurrency news from us directly to your inbox, please subscribe to our newsletter by entering your email in the footer subscription box.