A decentralized application (dApp) is a type of distributed open-source software application that runs on a peer-to-peer (P2P) blockchain network system rather than on a single computer. DApps are almost close to other software applications that are supported on a website or mobile but are P2P supported.
The decentralized nature of dApps means that after a developer has released a dApp's codebase, others can also build on top of it. This app is free from the control of a single authority. A dApp is developed to make a variety of applications, including those for decentralized finance, web browsing, gaming, and social media.
DApps are created on a decentralized network that is mainly supported by a blockchain-distributed ledger. The uses of blockchain enable a dApp to process data through distributed networks and to execute transactions. Dapps are also often built with the help of the Ethereum platform.
Distributed ledger technologies like the Ethereumblockchain have helped dApps to gain more popularity. The major benefits of dApps are that they are always accessible and do not have a single point of failure.
Although DApps are recently introduced with these many usages, they have gained popularity and are in demand too. Some key features that make decentralized applications noticeable are:
Open Source
In a closed-source application, the end-users must trust the developers of the applications in terms of decentralization as they cant access their data directly via any central source. Thus, closed-source applications are always carried risks for users when it comes to adopting them. On the other hand, Dapp is a decentralized and open-source application. A DApp makes a new structure for business practices as it allows all the network participants to keep track of the happenings rather than one individual. They are made through autonomy and any changes in the DApp are decided through the consensus (the majority of users). The code-base of a DApp must be available for scrutiny.
Decentralized Consensus
Before the introduction of Bitcoin, the validity of any transaction always need some type of centralization. In order to buy it, the transaction was pushed ahead through a clearinghouse that monitored it. Decentralized applications mainly work on a peer-to-peer (P2P) model, which means that the nodes are directly connected to each other. In a DApp, a transaction is made through a consensus mechanism. When the majority of the nodes approve the transaction, it goes on and gets processed. Also, the validators of the network are stimulated by rewarding them in the form of cryptographic tokens.
No Central Point of Failure
As DApps are distributed and dont rely on one single server, there is no central point of failure. DApps allow the data that is stored in them to be decentralized across all its nodes. These nodes are independent of each other. In case of failure of one node, the other nodes wont be affected and will run on the network according to it. Different decentralized database systems like IPFS (Interplanetary File System), BitTorrent, and independent DHTs can help to create DApps with this feature.
Though there are many dApps are used and developed, three examples of dApps include Chainlink, TraceDonate, and Minds.
Hope you are now familiar with the decentralized application, its features, advantages, risks, and its example.
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