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What are dApps (decentralized applications)?

Posted on: June 15, 2018, by :
decentralized applications
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Dan Muresan

Founder of Safe Crypto Trading & helping people to reach financial independence, investing in cryptocurrencies and blockchain technology. I worked at Fortune 500 international corporations from USA and Europe. Early adopter and investor in cryptocurrencies and stock markets, entrepreneur.

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Decentralized applications

Also called dApps, are a pattern, a model built on the blockchain technology, using smart contracts. Decentralized apps are open source, meaning that anyone can use them and can see how they work. And also, dApps are supposed to operate without any errors 🙂

dApps can function on multiple platforms, such as EOS, Ethereum, Ark, NEO and some others. These platforms where build in order to support dApps, so the potential development here is huge.

Until recently, apps were stored on our computers, or smartphones, or on the web. These apps usually have some companies that control and store them, companies that play as intermediaries between the creators of the apps and people who use them. For example Facebook gives you a free account and also a website and apps to use the platform freely. But as most services offered freely, if we didn’t paid for the product, it means that we are the product. Facebook uses our data in order to sell targeted advertising to business around globe. But users are not in total control of the data Facebook has on them.

The internet got eaten by these large companies such as Facebook, Google and others and now they have a massive for, because they gather user data. And data is power.

Everything we see on the web is basically information stored on some servers, hosted by a company. Owned by a company. It’s nice, at first look, but it’s also dangerous. Some people could hack these companies, servers, and steal your data and use it against you. It happened many times.

Keeping up with the blockchain development

In the last years, new platforms have been launched. These blockchain platforms basically try to replace the physical servers, owned by a specific company or entity. Some of platforms are EOS, Ethereum, Ark, NEO and some others.

These platforms, intermediate the interrogations made by users so there is no need of companies like Facebook to store this data on specific hardware servers. All the data is decentralized and all the functions of the apps (dApps) are stored and take place on blockchain. This way, the privacy and security is enforced.

Decentralized applications (dApps), are divided into three categories:

  • apps that can support financial wallets, crypto assets
  • apps where money are involved
  • different tools such as surveys

All dApps are based on and dependent of smart contracts, built on blockchain, so these are stored on a decentralized network, making them transparent and not changeable.

Meaning that smart contracts have the purpose to serve to all cryptocurrency users in buying or selling anything of value (basically an exchange) in a transparent and safe deal, and there is no need for and anyone to intermediate the transaction.

In the last years, different dApps have been created. You can research the valuable ones and maybe support or use them if you believe in the project. In conclusion, dApps are continuously developing and becoming more and more useful. We will have to see where they take us and how will dApps reshape the digital world.

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