What is DApp?
DApp is short for decentralized applications. The name implies that it is an application that is built and intended to run on a decentralized platform (network). DApp involves a smart contract and a user interface on the front end.
How are DApps related to blockchains?
DApps were made popular through the Ethereum blockchain and its DLTs or Distributed Ledger Technologies. In the Ethereum blockchain DApps are known as smart contracts. These contracts are transparent and accessible on the blockchain.
What other names does DApp have?
DApp is often referred to as a smart contract and also goes with terms like dApp, dapp or Dapp.
What features do the DApps have?
Unlike the more common applications which use centralized servers to run their codes, DApps’ backend codes run on a decentralized and peer-to-peer network. Here, the DApp’s frontend code and user interface are developed to integrate with its backend through any programming language. One of the common types of decentralized storage systems is the InterPlanetary File System or IPFS which stores and shares data through a distributed file system platform. IPFS is also a peer-to-peer network that connects devices through a unique content-addressing file system.
Besides that, DApp is also known to provide tokens for users that validate them as incentives where it is open-source, making it an ideal system to be used in blockchains, most notably in Ethereum.
Where are DApps used?
DApps is used in online businesses and has been known to be used by online gambling businesses as well. It is used on cryptocurrency data analytics platforms like Dapp.com, CoinGecko, State of the DApps and DappRadar, among others.
How are DApps applied in DeFi (Decentralized Finance)?
In the DeFi platform, DApps have and can be used for trading coins or accumulation of wealth in an account without needing to use a conventional platform like a centralized bank system. it is also used for typical financial services like lending or borrowing funds and goes long or short on certain assets.
What are the common apps used in DApps?
It must be noted that DApps run on special codes that might not be compatible with standard web browsers like Google Chrome. Certain types of DApps are designed and written to run on specific websites that recognize customized codes. That is why many online gambling sites run DApps. However, because of this advantage, it provides smoother and more secured transactions which mean there is a lot of potential for low-cost and more distributed financial processing that results in a lower cost of operations and anonymity. Among the platforms that have been associated with DApps include:
- Cryptokitties – A Tamagotchi-like game that was designed to run on Ethereum that inspired NFT platforms like OpenSea.io.
- Blockstack – A platform popular for developers to design applications
- Freelance – Typically a smart contract platform