DApp Projects

What is a DApp? All you need to know

Decentralized Application or DApp is an app similar to usual apps we all have on our phones and use them; with the difference of being built atop blockchain mostly Ethereum blockchain and won’t store users’ information on centralized servers. Like the cryptocurrencies which are decentralized money, DApp is a decentralized application using blockchain for securing the personal information of the users by distributed ledgers. These applications are controlled and run by the users not by the developers.

Whats DApp

Everything about DApp

Decentralized Applications are not limited; They are as diverse as the applications we use in our phones daily. From social media, games, entertainment to sport applications, users can monetize. Most DApps are built to provide DeFi services.

DApps are mostly built atop Ethereum blockchain. From the start day of Ethereum blockchain, The purpose was to make a better environment for DApps with more efficiency. People feel more secure when they are acknowledged they are not controlled by any central force. For instance, There isn’t any censorship or control over the data (content) you publish. All the DApps run automatically.

But how is it possible? Smart contracts are the solution! Smart contracts are some codes written to the blockchain which execute the whole process with no human being involved. So on, DApps are run with smart contracts built atop the blockchain.

But for more security, DAO comes in. Decentralized Autonomous Organization is a smart contract running on the blockchain, securing the execution process over the members’ activities. This organization is run by the members itself. Clearly whoever blocks more cryptos to provide the liquidity, has more power over the decisions.

what is DApp

DApp features

Open Source: Every single member in the network has access to the codes. Due to the consensus algorithm being used, being open source is one of the necessities of a DApp.

Decentralization: The popularity of DApps mostly is because of having no central power controlling your data or personal information. The network information is stored on the distributed ledgers. So they can not be tampered.

Rewarding System: The other spectacular feature of DApps is the rewarding system they have by validating the transactions. It means each validation who confirms the transactions, would be rewarded by the blockchain’s native token.

Consensus Algorithm: Each block must first be validated by the nodes. This validation comes from the confirmation that the whole nodes have agreed on. That is called “consensus algorithm”.

DApp Examples

DEX or Decentralized Exchange

DEX is a decentralized exchange using AMM mechanism to eliminate the third party. The most famous ones are PancakeSwap and UniSwap which allow the users to put up cryptocurrencies as collateral and earn passive interest because of providing the liquidity for the pool.

Gaming Platforms

The popular ones among the DApps are gaming platforms. They let the users build and customize their own avatars and be rewarded per activities they have in the game.

Marketplaces

These markets host millions of members daily especially for the NFTs. They represent an environment that users can build, buy and sell their digital assets and earn cryptos.

Last words

In this article we tried to simplify DApp definition and give a great perspective of this new world cracking technology. We would be really happy if you share you ideas with us.

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