A Beginner’s Guide To DApps

What is a DApp?

A decentralized application, aka DApp, is like any traditional software application but runs on a decentralized system of management. Such systems run on blockchain technology. Instead of a central authority, these applications facilitate working via smart contracts. Smart contracts are at the core of DApps and get executed automatically based on the terms and conditions of a programmed agreement.

A term you’ll often come across when talking about DApps is Ethereum. Because most decentralized applications operate on the Ethereum blockchain.

Key Features of DApps

• DApps are open source, which means the code is available openly to everyone for inspection. As they are autonomous, there is no governing authority involved.
• As the name suggests, decentralized applications run on decentralized blockchain technology.
• DApps work on an incentivized system. They distribute tokens to their network users in the form of rewards.

Advantages of DApps

• DApps are censorship-resistant. As no single authority has higher power than the others, they cannot take advantage of the network in any form. All users have equal power and no one user can block the others from the network.
• You can operate DApps without having to reveal your identity. This solves the privacy concern and lets users operate via pseudonyms.
• Due to the peer-to-peer network architecture, even if some part of the system is down, the rest can continue operating. Users benefit from zero downtime as a result of this.
• As no one can edit data added to the blockchain, it makes the system immutable. As users work to validate transactions on the network, the records become reliable.
• Users have complete control over their data and assets, rather than an authority handling it for them.

Disadvantages of DApps

• Once the blockchain is deployed and, as we know, data added to it cannot be altered, it becomes difficult to maintain the network. Any security risks or bugs that come up at a later stage can be difficult to fix for developers.
• DApps have low speed, as they can perform only a limited number of transactions per second.
• These apps include usage costs. Users are usually required to pay fees while operating them or for each transaction performed.

Final Thoughts

DApps are gaining popularity these days, due to the rise in the shift of systems from centralized to decentralized. Although there are certain downsides to these apps, they have some very good advantages over traditional applications.

At Kointrack, we provide information on the trending topics in the crypto market, along with making blockchain technology accessible to people.