Today's term is dApps. What are they and how do they work?
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Today I decided to take apart one of the most important concepts, which refers to a large number of crypto projects -
dApps.
dApp = Decentralization + Application
If more deployed, then dApps are decentralized, autonomous applications and services built on the blockchain. They are computer applications based on blockchain technology together with smart contracts.
A smart contract is a computer algorithm designed to form, manage and provide information about the ownership of something. More often than not, it refers to the use of blockchain technology.
From an end-user perspective, dApps should not differ much from regular apps. The main difference is that all data is NOT stored centrally on a server.
The lack of centralization allows dApps to be completely independent, autonomous, and not controlled by a third party. These are the applications that are the basis for the massive adoption and rapid development of any blockchain ecosystem.
The main advantages are:
- Transparency;
- fault tolerance;
- Data immutability.
A good example of the difference between centralization and decentralization is CEX (centralized exchange) and DEX (decentralized exchange).
In CEX you keep your funds in an account with the exchange itself, so you are influenced by the exchange. It may at any time take your money or simply go bankrupt. But still, the functionality of such exchanges is dozens times better than on DEX. In turn, on DEX your funds are stored in your wallet. And the exchange can not take them away.
Examples of dApps:
- MakerDAO protocol for converting ETH cryptocurrency into stable DAI coins.
- OpenSea Marketplace for buying and selling NFT.
Do you think dApps can overtake conventional apps in terms of number of users in the next 3 years? Or is that impossible?
Yes -
No -
Crypto_Ocean
