Blockchain technology has a manifold of manifestations. Often, we tend to associate blockchains with bitcoins or cryptocurrencies. However, blockchains are designed to do a lot more than just digital currency. One such application, literary yes, is decentralized applications.
What are decentralised applications?
Decentralized applications or d’apps as they are commonly abbreviated, are quite similar to any other mainstream applications that we can think of today. However, there is one core difference between normal applications and d’apps. The backend of d’apps is completely decentralized and it runs on a peer to peer network. There might be no difference in the front-end and programming languages like AngularJS can be used to create a robust and interactive front-end just like any other app. The front-end can be hosted on the centralized storage platforms.
As we already discussed, the spinal cord of the d’app lies in the blockchain.
What is blockchain?
Blockchain is distributed leisure technology and in essence, and open and decentralized database which enables trusted transactions without any dependence on third parties. One of the biggest advantages brought about by the blockchain yes immutability. It is only upon verification that new transactions can be added to the blockchain, or even be altered. As an extension, any copy of the blockchain on the nodes that disagrees with the rest is not accepted by the blockchain.
This might seem like a small feature but this concept of immutability is the one that makes data on the blockchain almost immune to any attacks by hackers. It is not possible for any hacker to identify all the nodes involved in the blockchain to change or compromise on the information.
Features of d’apps
There are a few features that distinguish d’apps from the other normal applications.
Decentralization – d’apps use blockchain cryptographic technology to ensure that there is no need for a centralized point of clearance. D’apps also make use of smart contracts that are designed to execute contractual clauses in an automated and preprogrammed fashion based on conditional triggering.
Token generation – the d’app is expected to generate tokens in line with the standard cryptographic algorithms. It acts as proof of contribution from the nodes to the app. The app is also expected to have a universally acceptable in-built consensus mechanism.
Open source – one of the most direct offshoots of decentralization is that the Apco needs to be made available to everyone. The authority and control over the app and it’s code cannot be confined to a single person or a group of people it is possible that your competitors can use your work and use their label on your app code. As a corollary, it can also help build the trust of future users. In short, it might seem like a short and disadvantage but it is sure to translate into a long-term advantage.
Incentivization – the d’app generates crypto tokens to incentivize the systems that contribute to the functioning of the app. The users also get access to the app in exchange for these tokens. The miners are rewarded with tokens upon successful contributions to the d’app ecosystem.
The different types of d’apps
The first among the three major kinds of d’apps are the financial d’apps. These apps are used to transact on the blockchain network with digital currencies.
There are semi-financial applications that are used to integrate money with real-world events using smart contracts.
Governance applications or decentralized autonomous organizations operate in line with the rules defining the membership requirements for an organization, the rights conferred upon each member and the business activities defined by specific tokens.
Advantages of decentralized applications
D’apps can be used to transact within the blockchain through P2P networks.
Decentralization ensures top-notch confidentiality as the data is fully encrypted. It is only the keyholder who can get access to the information.
The enablement of login using public and private keys means that users can interact and save sessions and metadata.
D’apps ensure top-notch transparency. The public blockchain leisure allows users and third parties to keep a tab on information about the transactions.
D’app users can engage in a lot of regarding positions and activities like being shareholders, developers, miners or bounty testers.
In a world of shared economy, d’apps are soon poised to become the de facto standard for ensuring decentralization and a balance reward ecosystem. Blockchain app development companies can take care to understand your business requirements and create your d’app in line with your idea!