DApps or decentralized apps are decentralized, anonymized, and safer owing to blockchain technology. The nature of decentralized apps or DApps can be summed up as distributed, flexible and transparent as they have the potential to transform the technological landscape in regards to the future of decentralization. So let’s dive on to why DApps are the next big thing!!
Although, there are various applications that we can download from the Google Play Store and Apple store. Similarly, DApps can also be downloaded on phones just like any other apps.
However, with DApps the data and privacy of the users are entirely secured. DApps are much safer since users’ data are stored in decentralized nodes and not in a centralized repository. Decentralized applications can be more reliable in using and spending money on applications through smart contracts.
In brief, DApps stand out as platform far superior to that of the traditional apps.
DApps are run on blockchain and distributed computing systems. Hence the stored data are not vulnerable to failure in comparison to the centralized storage of big tech companies such as Facebook.
Data security on a blockchain is ensured by cryptographic verification methods such as the Zero Knowledge Proof (ZKP) method. The presence of any user data in a distributed ledger makes it impossible for anyone to access.
Therefore, any hacker, which means a third party, can not access, manipulate, and sell this information. Whole data within the decentralized blockchain provides the safest network making it completely inaccessible.
How Do DApps Even Work?
To put simply, DApps are considered as applications, tools or programs that work on the decentralized Ethereum Blockchain. In order to understand this, one must understand how traditional web applications function and how are DApps any different?
In traditional web apps, elements that make the system usable are the front end and the back end. These elements communicate with each other in the form of coding messages through the HTTP protocol. Multiple issues are involved with such applications when compared with DApps.
First of all, such application servers are hosted on a hosting service that uses a centralized architecture which leads to a single point of failure in case of a malicious attack.
Moreover, taking down an application through a centralized server only requires the hacker to interrupt with the hosting service. When we rely on centralized servers, the data is more susceptible to attacks.
When it comes to DApps, there are again two main elements involved. While the front end remains the same as that of a traditional application, the backend is in the form of an Ethereum blockchain.
The communication between the frontend and backend happens in the same form as in the traditional app and the end user won’t be able to distinguish between both.
In the case of using a DApp, it is very difficult to bring any application down as it requires to take down all the distributed hosting nodes which are practically not possible. Contrary to this, a DApp is distributed in nature and involves the participation of all the elements of the network in order to modify or take control of any information.
Why Move Over Decentralized Apps?
DApps are more resistant to attacks than applications which typically have a single server.
If any single-server app falls prey to an attack or goes down for any reason, the entire system seems to stop working. However, a DApp will only fail if every computer in the network fails, which is usually close to impossible. If even one fails, still then that shouldn’t be a problem.
Moreover, DApps are resistant to modification or censorship. Once information is added to a blockchain, it’s permanently stored.
Since there is less authority owning a dApp’s network, any external authority that tries to block a DApp will be very difficult because the application doesn’t lie on any particular IP address.
There are many promising dApps out there, some of which are fully operational and are working on growing their user base, such as:
- Games like EOS Knights
- Crypto collectables like Cryptokitties
- Storage solutions like Storj
- Crowdfunding platforms like Vault
However, decentralized applications don’t function in exactly the same way as the apps that we are used to, and don’t always have the best user experience.
Considering DApps are open-source, they can still pose a threat to hackers who know how to search. (Open-source means that you can see all the weaknesses of the project transparently.)
Although this should not be a problem if you have a solid software. Though it could become a target of hackers if necessary precautions are not taken.
Best Ethereum-based DApps To Watch Out For
- Golem– Golem is a DApp project that aims to create a global market for utilizing idle computing power. The concept of the project is to utilize the power of PCs and data centers to create a rentable supercomputer that can be used by anyone across the world.
- Augur– Augur is an interesting DApp project which is based on the concept of combining prediction markets with the power of a decentralized network. It can be thought of as a decentralized market platform or a forecasting tool that allows you to make predictions for potential trading gains.
- Status– Defining itself as The Mobile Ethereum Client, Status allows mobile devices to act as a light client node. Based on the Ethereum network, it allows you to chat, browse and make your payments safely on the decentralized web.
- Gnosis– Gnosis is also a prediction market platform built on the Ethereum blockchain. The project aims to allow people to make accurate predictions about real-world events like elections, market prices, etc. Users of the platform are rewarded for making accurate predictions by Gnosis in the form of GNO token or other cryptocurrencies as per the project’s preset rules.
- Prism– Prism is an Ethereum-hosted project by ShapeShift. It provides a trustless and decentralized asset portfolio market. With the aid of Prism, anyone can invest ether in different cryptos and specify the holding percentage they want. Prism eliminates the need for third-parties and the complex process of saving and storing wallets and multiple private keys.
- Aragon– The Ethereum based platform allows people to create and manage a decentralized organization. The concept of the project is to eliminate the need for human trade and allows people to manage entire businesses and organizations using the blockchain.
DApps are flexible, transparent along with having a better structure of incentivization than the current software models.
Given, decentralized applications is based on blockchain, it can free the world from the clutch of a few third-party controlling powers like banks or data service providers.
Owing to their popularity, DApps are multiple dimensional in the arenas of payments, storage, cloud computing etc. and will soon surpass the currently available traditional applications.