Decentralised applications (dApps) are digital applications or programs that exist and run on a blockchain or a peer-to-peer network of computers instead of a single computer. DApps (also called “dapps”) are outside the control of a single authority and follow a decentralised decision making system. DApps are often built on the Ethereum platform—can be developed for a variety of purposes including gaming, finance, and social media.
Key Takeaways
- Decentralised applications are digital applications that run on a blockchain network of computers instead of relying on a single computer.
- Because dApps are decentralised, they are free from the control and interference of a single authority.
- Benefits of dApps include the safeguarding of user privacy, the lack of censorship, and the flexibility of development.
- Drawbacks include the potential inability to scale, challenges in developing a user interface, and difficulties in making code modifications.
Understanding Decentralised Applications (dApps)
Web apps today operate on a computer system that is owned and operated by an organisation, giving it full authority over the app and its workings. There may be multiple users on one side, but the backend is controlled by a single organisation. However, DApps can run on a P2P or a blockchain network.
For example, BitTorrent, and Popcorn Time are applications that run on computers that are part of a P2P network, where multiple participants are consuming content, feeding or seeding content, or simultaneously performing both functions.
In the context of cryptocurrencies, dApps run on a blockchain network in a public, open source, decentralised environment and are free from control and interference by any single authority. For example, a developer can create a Twitter-like dApp and put it on a blockchain where any user can publish messages. Once posted, no one—including the app creators—can delete the messages.
Advantages and Disadvantages of dApps
Advantages of dApps
Many of the advantages of dApps focus on the program’s ability to safeguard user privacy. With decentralised apps, users do not need to submit their personal information to use the function the app provides. DApps employ smart contracts to execute transactions between two anonymous parties without relying on any central authority.
DApps can also be developed as alternative social media platforms but with more free speech. A decentralised social media platform would be better to deal with censorship because no single participant on the blockchain can delete messages or block messages from being posted.
Ethereum is a flexible platform for creating new dApps, providing the infrastructure needed for developers to focus their efforts on finding innovative uses for digital applications. This could enable rapid deployment of dApps in a variety of industries including banking and finance, gaming, social media, and online shopping.
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