Firstly, a decentralized application (DApp) is a program that is built on a decentralized network and has both a smart contract and a user interface on the front end. On Ethereum, smart contracts are open and easy to use, just like open APIs. This means that your DApps can even use a smart contract that was made by someone else.
DEFINITION OF A DAPP
Secondly, a decentralized peer-to-peer network runs the code for the back end of a dapp. Compared to an app where the back-end code runs on centralized computers, this is not the case.
Like an app, a DApp can make calls to its backend using code and user interfaces written in any language. Its front end can also be stored on a decentralized file system.
- Decentralized – Dapps operate on on Ethereum, an open, public, decentralized platform that no one person or group controls.
- Deterministic – Dapps perform the same job no matter where they run.
- Turing complete – Dapps can do anything if they have the right tools.
- Isolated – Dapps run in a virtual setting called the Ethereum Virtual Machine. This way, if a smart contract has a bug, it won’t affect how the blockchain network works.
Benefits of DApps
- Zero downtime – Once the smart contract is put on the blockchain, clients who want to deal with it will always be able to do so through the network as a whole. Because of this, bad players can’t start denial-of-service attacks against specific dapps.
- Privacy – You don’t need to use your real-world identity to install or connect with a decentralized app.
- Resistance to censorship – No one organization on the network can stop users from sending transactions, installing dapps, or reading data from the blockchain.
- Complete data integrity – Thanks to secure primitives, data that is kept on the blockchain cannot be changed and cannot be questioned. Criminals can’t fake purchases or other data that has already been made public.
- Trustless computation/verifiable behavior – Smart contracts can be looked at and are sure to run in a predictable way, without the need to trust a single authority. In standard models, this is not true. For example, when we use online banking, we have to believe that our financial information won’t be misused, records will not be tampered with, or we won’t be hacked.
Challenges of DApps
- Complexity: DApps can be complex to develop and maintain.
- Security: DApps are still a new technology, and there are some security risks associated with them.
- User experience: DApps can have a poor user experience compared to traditional apps.
- Regulation: The legal status of DApps is still unclear in many jurisdictions.
Some popular DApps
- Uniswap: A decentralized exchange that allows users to trade cryptocurrencies without a central intermediary.
- Axie Infinity: A blockchain-based game where players can collect, breed, and battle digital pets.
- MakerDAO: A decentralized finance platform that allows users to create loans and other financial products.
- Decentraland: A virtual world where users can buy land, build structures, and interact with each other.
- Storj: A decentralized file storage platform that allows users to rent out their unused storage space.
Future of DApps
Lastly, the future looks good for DApps. They could change the way we use the internet and connect with the world around us.