Hello Everyone! Has anyone ever heard of dApps? Don’t feel bad if you haven’t. Even I came to know about dApps just the past week. Let me tell you, it’s very interesting. Decentralized App in short for dApps is a storm of change in the tech world. Let’s see what dApp is.
By definition, “dApp is an open source application that operates autonomously on a decentralized public blockchain. It cannot be controlled by a single entity, and it generates and uses tokens by following a standard cryptographic algorithm.”
Let’s analyze the criteria that make an app dApp:
Open Source and Autonomous: dApp is open source, means, it is available for everyone from anywhere without any restrictions. It has the freedom to govern itself or control its own activities. Since the code is open source and managed autonomously, it is available for everyone for checking out. The changes are decided by all or the majority of the users.
Public blockchain: the underlying technology behind a dApp is BLOCKCHAIN (we will discuss in detail below), which should be public.
Cannot be controlled by a single entity: Single entities can be interpreted as an operational unit. dApp, as the name indicates, is decentralized. Its control is spread all over the world. They do not come under influence of a person or an organization. dApps are free from control and interference from any single authority.
Generate and use tokens following a standard cryptographic algorithm: dApps generate and use tokens from every single entity it is performing. These tokens are encrypted using a standard cryptographic algorithm for security.If an app doesn’t meet all these criteria, then it is not a dApp. Based on the above definition, the first dApp ever built was Bitcoin. Bitcoin is an implemented blockchain solution that arose from problems revolving around centralization. One can say Bitcoin is a self-sustaining public ledger that allows efficient transactions without intermediaries and centralized authorities.
BLOCKCHAIN is the underlying technology behind dApp. Now let us look into the basics of blockchains for the better understanding of dApps.
What is BLOCKCHAIN and how it works?
BLOCKCHAIN is the technology that enables moving coins or assets from one individual to another. Always understand that Bitcoin ≠ Blockchain. The main use of blockchain is faster and reliable money transfer without a centralized third-party.
Let’s take the above example. Suppose a Person A in America wants to send $10 to a person B in India, A is dependent on a trusted 3rd party for the process. However, the process takes time, about 3 days for the trusted 3rd party to find the correct Person B in India and pay him the money. They will also charge B an amount as their service amount which means person B receives only $8.5 after 3 days.
If this same process is done with the help of blockchain, there won’t be a third party. Also, you can send your money directly to the person without any delay and approximately no service charge. Blockchain technology, made possible to dis-intermediate third-party operators to exchange value online. This decentralized trust.
The best advantage of dApps is that you can own your own data. Your data is the most valued possession in this digital era. Anybody can access your data and you can earn with this concept.
Increased data reliability: Since dApps is decentralized, there won’t be any central server which stores every data. Data will be distributed everywhere so that there won’t be any broken links or 404 not found.
Faster data transfer: Sincedata is distributed across the world, number of peers will be more. Therefore, we can access data from the nearest peer. The download speed will be so fast as the number of peers increases.
Cannot be shut down: There are cases where some website, links or apps are not accessible for a person, region or country. For example, China blocked Facebook in 2009 June to stop a riot since Facebook was the main source of communication for the activists. Such cases won’t happen if dApps was in the scenario.