Decentralized Applications (dApps)

Decentralized Applications (dApps)

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Updated on Jun 30, 2022 17:18 IST

Decentralized Applications (dApps) are the apps hosted on a blockchain network instead of any centralized server.

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Contents

Introduction

Decentralized applications (dApps) are one of the significant steps towards following a true web 3.0 world. Snatching back our data privacy and authority from tech giants ain’t going to be a cakewalk. However, developers and enthusiasts worldwide are gaining ground toward achieving the futuristic dream of data and privacy independence.

This article covers the details of decentralized applications, commonly known as dApps. Let’s begin with the inception of dApps. 

A Brief about Ethereum Blockchain & Smart Contracts

Ethereum is a public blockchain and a cryptocurrency (ETH). The Ethereum network has multiple applications, such as Smart Contracts.

Smart contracts allow different parties to agree on a few conditions that later get coded into a self-executing program. Hence, it’s a software program that automatically executes when the coded conditions are met. A smart contract eliminates dependency and trust on the third party, saving constant attention, time and cost. 

smart contract

Ethereum blockchain provides an open-source development platform and environment to build Decentralized Applications (dApps) using Smart Contracts. 

What is a dApp?

The browser you’re reading this article on interacts with a centralized server to fetch this information for you. Tech giants like Meta (Facebook), Amazon, Google, etc., feeds on customer data. Hence, you’re the product for them to generate revenue. 

Decentralized applications (dApps) are one of several paths to bring back users’ data liberty out of centralized control. Hence, instead of reaching a centralized server, your requests actually contact the Blockchain for information. dApps are the apps only, without centralized control.

App = Frontend + Backend → Hosted on Centralized Network Servers.

DApp = Frontend + Backend + Smart Contracts → Hosted on Blockchain.

Smart contracts help to encode the regulations and conditions of the decentralized application. It works along with the Backend of the application. Usually, smart contracts are programmed in solidity language and executed by Ethereum Virtual Machine (EVM).

How does a dApp attain decentralization on Apps?

Decentralized applications are hosted on the blockchain network. It means each node contains the exact same copy of the coded application. Hence, no central server is responsible for changes and maintenance of the application.

How Does a dApp Work?

dApps interact with users on mobile or browser like a normal app or website. Users can also connect or log in via wallet to access the application. The dApp hosts on the blockchain network. The source code is available for verification to each node in the network. 

The front end of the application is written in HTML, CSS, JS, etc. Backend is written in JS or Python, usually interacting with smart contracts and Blockchain. Moreover, frameworks like NodeJS and Web3 or Django help to create the Backend. 

dapps

Hope the above image helps you give a brief outline of the working of decentralized applications. 

Also, read How does Blockchain work?

Let’s go to the benefits of creating dApps.

Benefits of dApps

Following are the advantages of Decentralized Applications (dApps):

  • Data integrity and Privacy
  • Censorship Resistant: Nobody is authorized to control the application’s actions. Hence, equality and decentralization.
  • No Downtime: As the whole network is decentralized, no one or central point of failure.
  • Open-Source and Permissionless
  • Provides incentives for valuable reviews and building reputation
  • No third-party trust

Limitations of dApps

Following are the disadvantages of Decentralized Applications (dApps):

  • Decentralization might affect the User experience and maintenance as no single entity is responsible.
  • Once a smart contract is deployed on the Blockchain, it can’t be altered.
  • dApp can lead to network congestion due to heavy computation.
  • Performance overhead
  • Scalability issues

Examples of dApps

Following are a few of the application examples of dApps:

  • Augur: A decentralized prediction marketplace based on Ethereum
  • Bit Torrent: A decentralized file-sharing application
  • Golem: A decentralized marketplace for renting computational power and resources
  • Cryptokitties: A decentralized game application
  • Minds: A decentralized social media platform between content creators and consumers

Conclusion

The article above goes through the origin of dApps–Ethereum and Smart Contracts. Afterward, it covers gore details and the working of decentralized applications. Moreover, the article points out the pros and cons of dApps.

Also, read Blockchain Interview Questions.

Hope you enjoyed and learned something new reading the article. If you face any queries, please share them in the link below.

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FAQs

What is Blockchain?

Blockchain is a peer-to-peer (P2P) decentralized network that connects several nodes. Itu2019s distributed ledger that stores data permanently in blocks. Those blocks are cryptographically connected in a linear sequence. Hence, creating the chain of blocks.

What is Ethereum?

Ethereum is a public blockchain network and a Cryptocurrency with various applications and use-cases.

What is Ethereum Virtual Machine (EVM)?

Ethereum Virtual Machine is a platform for executing a smart contract on the Ethereum blockchain.

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