4min read
Published on: Mar 25, 2024
#Blockchain
A decentralised application (DApp) is an open software application that is distributed and runs on a peer-to-peer (p2p) blockchain network instead of a singular computer.
The first DApp was the Bitcoin network.
Did you know? Bitcoin was launched by Satoshi Nakamoto in 2009.
Bitcoin is technically a DApp.
However, the full use of DApps started in 2015 when Vitalik Buterin launched the Ethereum network.
DApps run on an open-source, public, decentralised platform, and are free from interference or control from any single authority.
For instance, a developer can design an app just like X (formerly Twitter) and put it on a blockchain where anybody can publish messages.
Once this message is published, no one can delete or alter the message, this includes the app created too.
Decentralised applications possess the following key features:
Open Source
Decentralised Storage where data is stored
Cryptographic Support which validates and confirms the decentralised blocks of data
DApps are kept and done on a blockchain system, commonly using the Ethereum system. Centralised servers support a normal application while a smart contract kept on a blockchain supports a DApp.
Ethereum is the most popular blockchain for running a smart contract that implements rules in the code and mediates transactions. A smart contract contains the back end only and is usually a small part of the whole DApp.
Recommended Read: Ethereum Explained
Creating a DApp on a smart contract will involve combining many smart contracts and using third-party systems for the front end.
The blockchain run by a smart contract is on a ledger of recorded data stored in blocks instead of a central location. This block of data remains scattered across different locations.
All the data blocks are connected and ruled by cryptographic confirmation in the ecosystem.
1. Social Media
DApps for social media give more control to the users. This leads to freedom of speech because there are no centralised authorities that can delete your post or block you from the internet.
It is possible to handle user data while using decentralised applications. In DApps for social media, users can earn more compared to the old-fashioned social media apps like X (Twitter).
On X (formerly Twitter), the advertisement revenue that the platform gets from different accounts goes to the platform directly and the speaker gets nothing from the platform.
The case is different in Dapps. The influencer gets a share of the profits made from the ads from the platform. This is how creators on decentralised social media platforms are empowered.
2. Finance
In traditional finance, banks act as the middleman between the sender of the funds and the receiver.
When you store your money in a bank, the bank lends the money to someone and gets a big interest from the one that borrowed the money and gives a small part to you who stored the money in the bank.
It’s different in DApp. The person who lends money to someone else gets 100% interest on the money without any middleman to pay, giving them control over the money and loans.
3. Real Estate
DApps will make the management of assets better.
For example, when you want to acquire a property, there will be no need for too much paperwork. The records are stored in a blockchain, which makes the property records impossible to be hacked.
The ownership of a property can be changed only if the former owner sold their property to another person. The new ownership of the property also needs to be recorded and updated in the blockchain.
It is no secret that the real estate industry is huge, and the adoption of DApp technology will improve it by making it more efficient, transparent, and can even remove scams from that industry itself.
4. Gaming
DApp for gaming will create a new income stream for the gaming community. It also provides a secure place for gamers to store the in-game assets they have claimed without fearing losing them.
In Play-to-earn games like crypto kitties, the user can breed their cat and then sell the cat to another user and obtain cryptocurrency or NFT which also is valuable in real life.
When investing in real cash, the platform for investing should be secure. DApp takes care of the security and web3 games and metaverse games also attract a lot of users.
5. Healthcare
With the help of DApps, patients' medical records can be stored more securely. The records are stored in a blockchain so it is impossible to hack or tamper with it.
The patient’s previous medical condition and the patient’s previous medication can be stored which makes it easier for the doctor or the physician to make informed decisions on the patient’s current condition.
In a decentralised ecosystem, all public health records are linked and shared across various points of the network.
By this, the health organisation can say if a particular disease that spreads across a population is a pandemic or not.
6. Supply Chain
DApp has helped supply chain management gain its stance in recent years.
The distributed ledger has the potential to make complex supply chain operations simple and also improve transparency, trust, and effectiveness in their business operations.
There are various difficulties in the supply chain business which includes, suppliers, manufacturers, retailers, and distributors.
Every one of them has its data or records to maintain which leads to differences and delays in uploading the actual data
7. Digital Identity
Dapps is the safest place to store and confirm identities such as passports and the voting rights apps.
With the help of smart contracts, voting can be made more efficient and remove the tampering of voting rights.
The DApp facilitates passport verification, making the process quicker and easier to determine the exact identity recorded in the distributed ledger and quickly process the document.
8. Education
DApps can be used to design platforms of learning that are decentralised. This allows the teachers and students to interact directly without needing an intermediary.
Centralised applications work on servers controlled solely by one entity.
This means that the software or application is controlled by its company or owner. In contrast, DApps use peer-to-peer networks and blockchains to operate without a central authority.
With centralised applications, users have their version of the app and communicate with each other using the server of a company. With DApps, users communicate with one another directly.
This communication involves financial transactions that are done without a middleman and cross-chain bridge communication.
TABLE
1. Uniswap
Uniswap is a US-based DApp that is on the Ethereum blockchain which was launched in 2018.
The platform allows users to trade and swap ERC-20 tokens.
Uniswap is the most popular decentralised exchange and also the fourth biggest crypto exchange on the internet.
The most special feature of Uniswap is that it creates liquidity without relying on buyers and sellers.
By simply connecting a crypto wallet, anyone can access the platform. The most common choice among the users of Uniswap is the MetaMask wallet.
2. Pancake Swap
Pancake Swap uses Uniswap’s source code for its decentralised exchanges. It is part of the Binance Smart Chain Ecosystem. It allows users to trade and swap BEP-20 tokens, not ERC-20 tokens.
Binance Smart Chain was created specifically for small DApps to reduce high transaction fees and delays.
The user experience is smooth and you are not required to pay any fee except the exchange’s taker or maker fee, which is just 0.2%.
As blockchain technology evolves continually, decentralised Applications are becoming more popular.
These applications can transform the future of various industries, by providing a secure, transparent way of doing transactions.
DApps have numerous benefits and they are already used by industries such as Finance, Supply Chain Management, Gaming, Real Estate, and so on.
As more industries adopt the usage of DApps, we can expect to see many changes in the way we live and work.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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