What is a Dapps?
Dapps are decentralized applications . Basically, they are like a traditional app, with similar functions, but running on a peer -to -peer network , such as a blockchain. That means that, in theory, no one person or entity has full control of the network. Although these are characteristics that many in the crypto community believe should be maintained, as the industry has become more popular, Dapps have emerged that only meet some of them. Dapps are decentralized applications. Basically, they are like a traditional app, with similar functions, but running on a peer-to-peer network, such as a blockchain.
They are censorship resistant, have no downtime, and are open source.
Most of the Dapps are built on top of the Ethereum blockchain. Although there are already other networks, such as Solana, that allow the execution of smart contracts to create these decentralized applications.
What are the benefits of Dapps
Dapps have several interesting benefits:
They are resistant to censorship: since they work with a peer-to-peer network, it is difficult for governments or powerful people to have control over them. The information is not stored on a central server or controlled by a company, which makes unilateral and arbitrary decisions. They do not have downtime (or it is very reduced): that means that the network will be working 24/7 and will not be down for some periods.
Blockchain-based: They work with smart contracts, these digital agreements between several people that can be easily executed without the need for an intermediary. Open source ( Open Source ): anyone with development knowledge can review how the application is built, detect errors and propose improvements.
One of the Most Famous Dapps
If you have read anything about NFTs , you have surely heard about CryptoKitties. This digital collectibles platform has been in the news almost non-stop since its launch in 2017, when the number of transactions they generated slowed down the Ethereum network.
CryptoKitties is, to date, one of the most well-known Dapps. With this Dapps, which works similar to a virtual pet, you can buy, breed and collect digital cats. In other words, not two are alike. Two different CryptoKitties can be bred; using a genetic algorithm and produce offspring with their own unique traits (or as they call it, cattributes). And this entire digital ecosystem for cat collectors was possible thanks to Ethereum , the blockchain par excellence for Dapps.
The future of decentralized applications
Dapps are in their early stages. We are truly witnessing his birth of him.
However, there are already thousands that offer a wide variety of services and features. From new social media platforms to money exchanges or why not your own way of raising digital kittens. There are DApps that make it easy for you to access financial instruments in a decentralized way, such as Curve or Aave .
The Axie Infinity and Plants vs Undead video games or decentralized exchanges (DEX) such as Pancakeswap and Uniswap are also part of the infinite range of Dapps that has not stopped growing. In fact, by the second quarter of 2020, the volume of transactions in Dapps had reached $12 billion, an increase of $4.5 billion from the previous quarter. Before Dapps can compete with platforms like Facebook or Instagram, developers and networks have challenges to solve, such as scalability, security and user experience.
Dapps and Ethereum:
Most of the Dapps are built on top of the Ethereum blockchain. Although there are already other networks, such as Solana, that allow the execution of smart contracts to create these decentralized applications. The Ethereum Virtual Machine, also known by its acronym in English EVM, is the main driver of this trend, since it has development kits and support that allow the creation of any application quickly.
Remember that this blockchain has the challenge of becoming the new internet of the decentralized world. For this reason, its cryptocurrency, ether (ETH), has been positioned as the second most important crypto in market capitalization for several years. Having ethers is the first big step you must take if you want to enter the world of Dapps and their varieties.
