What Are Decentralised Applications Or Dapps?

The name decentralised application (dApp) may sound like a departure from your run-of-the-mill smartphone application that you use every day, but from a user’s point of view, the experience should all be the same.

dApps are applications that run on a blockchain or a peer-to-peer network instead of running on a single database controlled by a central authority. They function in the same way as any other application; it is just that they cut out the middleman and allow for user-to-user communication.

dApps serve the same functions as applications, and they can be developed for a variety of purposes like gaming, social media, finance, and much more. The data and records in a dApp are public and not controlled by a single authority.

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How are dApps useful?

Let us understand this with an example. Consider Uber as an example of a centralised app. The source code of the application is running on a large database/server in a particular location and is owned by a company that has liabilities and financial interests of its own. They have complete control over the functioning of the application. Even though millions of users are in the front-end of the app, a single organisation controls the backend.

dApps were created to eliminate the need for this single authority that controls all data. uTorrent is an example of a peer-to-peer (P2P) application. It runs on multiple computers on the P2P network where multiple participants take part in feeding and seeding content without the restrictions of a central authority.

The popularity of the decentralised finance world has introduced dApps that run on open-source blockchain networks like Ethereum. These dApps use cryptography to keep the network secure for its users.

dApps interact with smart contracts in the blockchain, a self-executing code. Smart contracts fulfill their tasks when certain conditions have been met, which removes the need for an administrative overhead that did the job of smart contracts previously in normal applications.

dApps are steadily gaining traction, with more than 2,000 dApps built on popular networks like Ethereum and EOS, Tron, and NEO. One of the most prominent uses of dApps is in decentralised exchanges (DEX). They enable users to swap crypto with other users without the need for centralised authority that executes the transactions between users.

What are the advantages of dApps?

dApps allow users to safeguard their personal information and give a certain level of privacy. While using a dApp, you do not have to submit your personal information to operate the application’s functions.

dApps can be medium that can circumvent censorship imposed by governmental authorities. As dApps run on a blockchain, no entity can delete or block messages on the blockchain. This could be a foundation for alternative social media where free speech cannot be stifled. The open-source nature of dApps gives developers leeway to build better dApps with more useful or interesting functions.

Can dApps be harmful?

Like any other technology, dApps have their own set of negatives. As many dApps run on open-source platforms, it can allow malicious hackers to probe the application’s code for weaknesses. This could lead to substantial hacks.

As of now, many of the dApps do not have robust user interfaces like their counterparts. Centralised applications have well-defined interfaces that make the user experience richer. If dApps want to compete with a centralised application, they need to work on their user interface as it has become an integral part of app development these days.

(Edited by : Jomy Jos Pullokaran)

This news is republished from another source. You can check the original article here

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