Since Bitcoin was launched by Satoshi Nakamoto, new and upgraded protocols have been released to continue improving blockchain technology. Today, there is a growing industry of applications and systems running on blockchain, from games, online markets, financial services and everything in between.
These so-called blockchain programs are called decentralised applications, otherwise known as dApps. How did they establish a new industry within the blockchain that would forever change the crypto ecosystem? Find out more about it here at Casino Days India!
What are decentralised apps (dApps)?
Decentralised applications (dApps) are digital programs that run on peer-to-peer networks and blockchains instead of using a single server.
Since they are decentralised, no central authorities or third parties have the jurisdiction to completely control a platform. With this, it significantly reduces the possibility of a network attack or extended downtime, allowing users to access a platform anytime they want.
Moreover, dApps are known to be community-driven. Meaning, participants within the blockchain network have better control over their personal data and avoid the scrutiny of outside parties.
For example, you can develop a decentralised app similar to Instagram. Once it runs on a blockchain network, every participant can create and publish posts whichever way they like. Not even the creators and developers have the power to edit or remove the post.
In 2014, when a report published the definition and criteria for dApps, it gave the following characteristics:
- A dApp must be open-sourced. Meaning to say, no entity should own the majority of tokens and coins in the network. If there is a change in the protocol, users must be able to vote on the proposed alterations.
- A dApp should follow a consensus method to generate tokens, such as proof-of-stake (PoS) or proof-of-work (PoW).
- The assets within a dApp should be rewarded to its contributors like miners and stakers.
- The data must only be stored on a decentralised blockchain to avoid network attacks and breaches.
How do they work?
To fully understand decentralised apps, you must first take a closer look at their structure. These blockchain programs contain a frontend code to connect with the participants of a network, as well as a backend code to prevent authorities from meddling with the system.
At first glance, a dApp can look like any other mobile application and web page that you use on a daily basis such as Twitter, Instagram and YouTube. The difference is, the frontend code consists of a digital wallet that protects the public and private keys of users.
In addition, it makes calls to trigger the backend code, as well as handle cryptographic keys and wallets for further authentication. The backend code operates on a decentralised peer-to-peer system. They are created using a smart contract through the Solidity programming language.
A smart contract is a transaction protocol that contains a set of rules, mediating agreements and transactions between users and developers. So, once a smart contract has been applied to decentralised apps, no changes must be made.
3 decentralised apps you should watch out for
Now that you know how a decentralised application works, check out the most recommended dApps that you should look out for:
Launched in January 2016, Brave is a web browser that has garnered approximately 36,200,000 active users per month. To address the issues within the advertising industry concerning user privacy, Brave creates an advertising model that focuses on consumer experience.
To do this, the developers aim to create a digital advertising and services platform that mainly operates on blockchain technology. It would give users better control over their information and privacy, which has become a growing problem in advertising.
Moreover, the Brave browser anonymously and securely tracks user experience using blockchain technology, eventually converting it to rewards for content creators. So, the better your content is, the bigger revenue you will earn. This allows publishers to monetize the things they put on the Internet, such as articles, images and products.
Another recommended dApp is Chainyard. For starters, it aims to address the problems in supply chain management which currently faces slow and inefficient processes. However, with a blockchain-based network, this decentralised app enhances supplier validation and information management to fast-track transactions.
Collaborating with IBM, Chainyard released a service that runs on blockchain called Trust Your Supplier. Using this new feature, buyers get easier access to a supplier’s background info, giving way to smooth-sailing connectivity in supply chains.
There are instances where companies and private individuals would be sceptical and hesitant to donate to charities due to the lack of transparency. Luckily, TRACEDonate has found a way to make charity-giving much more traceable and open to public scrutiny.
Developed by AID:Tech, TRACEDonate links donors and charity organizations to their beneficiaries. In this way, donors will be guaranteed that their donations will be allocated to the people in need, such as groceries, clothes and housing.
Using the blockchain, the program will prove the identity and the background of a certain charity organization. The donor can track the money they donated since it is stored in a digital online wallet. It also gives the donor an option to mention how they want their monetary donations to be used, whether for emergency supplies, medical expenses or food.
The future of decentralised applications
Ever since dApps have entered the market, there has been a growing user base looking for new functionalities offered by blockchain technology. It is slowly reshaping how communities on the Internet and blockchain networks communicate with each other, eliminating the threat of third parties from meddling in business transactions.
Although this technology is yet to be maximized by other industries, it aims to take automation, user privacy and transaction security to a whole new level.
As blockchain continues to evolve over the years, there is a huge possibility that online marketplaces, social media platforms, games and medical services will run on blockchain networks. With this, decentralised apps can widen their reach to the general public.