Real life application of dApps, and what one needs to become such an entity

There has been a debate all over the internet about the application of “real dApps” and what makes a dApp legitimate and not centralized nor stored on a server. In order to create a dApp, a standardized centralized application (app) must follow certain patterns and change its programming code to a certain extent.

Defining dApps

dApps can be defined as software application or service whose back-end processes are running on a decentralized peer-to-peer network, with no central authority to regulate interactions between users, when the key advantage is the distribution of essential components. With this in mind, these dApps are also backed up by a blockchain, Ethereum being most popular at the moment; however more and more dApps are utilizing Steem and EOS.

Fundamental differences: Apps vs dApps

1. dApps can accumulate utility

The nature of dApps allows them to accumulate utility inside themselves. In order to colorfully depict this, we can take a betting dApp which accumulates EOS, a native cryptocurrency of the platform, which a protocol distributes randomly (using provably fair technology) after a certain bet (ex. Dice rolled under 50) has been placed and won. EOS allows people to place bets free-of-charge, and it allows the platform to transact over half a million bets every minute.

This is fundamentally different from the National lottery for example which merely serves as a trusted 3rd party medium between participants, but it does not accumulate any utility whatsoever!

2. dApps never cease to exist

Once a dApp is generated and pushed to the network, it will remain there forever thereby enabling users to easily access it and use its services. The value here lies in dApps’ ability to continuously keep generating specific services that users can utilize.

Contrastingly, there have been many occasions in which apps simply disappeared from the radar, without any prior notices or announcements to the frustration of their users. dApps can also be “self-destructed” by their creators, but the users will be able to see which dApps have this ability and which don’t.

3. Reciprocal interactions

Once a dApp is on the Blockchain anyone can interact with it, however many dApps are reciprocally compatible with each other. What this ultimately means is that not only people/users can interact with dApp protocol, but rather other businesses can mutually help each other by imparting services and features thus creating a better and more enhanced environment.

Let’s put it into perspective: A dApp in development Digix is putting out gold on the blockchain in the form of a token (DGX). Copious other dApps such as WeTrust, Augur, or Qurrex can integrate DGX into their dApps and assist them in upgrading the procedure of gold utilization.

4. Transparency

It goes without saying that all dApps are open-sourced, meaning that their code is publicly visible. What is even more, all the code’s update is being publicly recorded and stored as well so that the users can see which features are added or changed. Ultimately, other developers can contribute (fork) to the improvement of the code by implementing their modifications. For that reason, most of the dApps have their code integrated via GitHub.

Worthy mentions

It hasn’t escaped our notice that some dApps (mostly ETH-based which add up to 70% of total dApps) can be very slow in processing transactions per second. Ethereum network, in the best light, can handle about 15 transactions per second. That’s why lately dApps are using other blockchains to build their protocol and platform around. EOS, for example, is great for transactions speed and cost, but various security vulnerabilities have been recorded and detected recently. Steem, on the other hand, is a very good medium for building social networks.

ETH-based dApps require small fees (gas) for the execution of its tasks. This “cost” stems from Ethereum’s functionality, that is, the necessity of employing several thousand nodes for the completion of a certain task. The small fee is a way to compensate those operating these nodes.

Some more complex and beneficial dApps cost more to interact with, so the dev team gets rewarded for writing efficient code.

Being a toddler (and road to becoming a full-grown tech)

Most of the dApps are still toddlers. They are still learning how to walk, talk, and behave. Despite the unfavorable odds, they are learning to speak the fastest (developing and upgrading code).

dApp technology gained popularity in 2018, and it is estimated that the following years will bring much-anticipated prosperity and adaptability. The technology is being used on a daily basis by millions of users worldwide, and dev teams are working day and night in order to build more sophisticated protocols and environments essential for evolving the technology and making it widely adopted.

If you had any other feature in mind, don’t hesitate to drop a comment below or contact us. On the other hand, if you want to share a thoroughgoing dApp that we eluded our attention, don’t hesitate to contact us.

The guest author for the above article is CoinPoint. (Syndicated from Medium)

CoinPoint is a premium marketing agency, founded in 2013, working with all scale businesses — from startups, presenting their businesses on a global level, to multinational companies looking for digital transformation & blockchain adoption. The agency stays on top by providing the best services and solutions to its clients around the world.

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