- March 5, 2019
- Posted by: suma
- Category: Blockchain
The blockchain is not only about currency. Ever since the Ethereum platform, developers have been testing it by building decentralized applications (Dapps). The Dapps are different from centralized applications i.e, mobile applications. With the emergence of Dapps, there’s been some confusion as to what the difference is between apps and Dapps.
Apps typically are software applications that run on the desktop or mobile devices. Whereas Dapp (decentralized application) is typically an app that runs on a blockchain such as Ethereum or NEO. Creating a Dapp is fairly simple, however, we do want to make Dapps private, allowing access only to those who have access to see the code. DApps (decentralized applications) present a vital component of the next growth phase of crypto growth. For example, Bitcoin could be termed as the first decentralized application. Already a lot of development has taken place in this aspect. Many companies are testing out various use cases from agriculture, healthcare, tracking, storage, real estate, social media etc. At the heart of mass adoption of crypto is a decentralized application (Dapps).
App vs. Dapp Security-
Apps operate on a peer-to-peer network, taking away the security vulnerabilities of a central point. One central point can be more easily attacked by hackers, creating security issues with the whole app. Dapps, on the other hand, have distributed security and are less likely to suffer serious consequences from attacks.
It has the potential to transform the way we trade currency, purchase goods and services, and exchange value in general. Dapps’ capacity to self-sustain through incentivizing participation can change the way we do payment processing, as well as use computing power and data storage. The most exciting potential of Dapp development is in the creation of peer-to-peer marketplaces where users can complete transactions in a cheaper, safer, and faster way without the need for third parties that simply add more fees and longer, more cumbersome processes.
Users are incentivized through tokens to undertake certain tasks on the ecosystem such as transaction verification. This helps improve the system and creating an ecosystem that has both users and consumers on both sides. The economic incentives are more aligned in this case than current apps. An ecosystem powered by tokens creates more value for users than just posting and publishing but giving possibilities of ownership of digital assets. This is not possible with current apps.
In contrast to apps, Dapps use different financial models. Dapps don’t rely on external monetary value. Instead, they store the value in the application itself, enabling the creators to issue currencies as tokens, generate value by work invested in the application, and enable trading of the tokens on financial markets.
In a way, Dapps use internal finance models established not simply as a means of exchange, but also as a motivator for investing work. This aspect doesn’t mean that Dapps only have a financial purpose. In fact, many Dapp development projects are concentrated on finding alternative solutions to building user chains, for instance, in supply chains, without numerous intermediaries and unnecessary fees, not having the token as a primary objective.
Dapp development turned the tables in favor of end users, who can now access the blockchain network from a decentralized server network and affect the decision-making process in a more democratic way.