What Are Decentralized Applications (dApps)?

According to Cryptopedia, Decentralized applications (dApps) are applications that run on top of blockchain networks. They can be programmed to a variety of real-world circumstances. The user experience (UX) of DApps is quite similar to that of web applications. However, their back-end working differently. Instead of using the central HTTP protocol, decentralized apps use dispersed and peer-to-peer (P2P) communication to avoid centralized servers.

The Blockchain brings DApps to our world

Since Bitcoin launched more than a decade ago, blockchain protocols are constantly being developed and refined to unlock new functionalities and use cases. Now there is a budding industry of decentralized applications (DApps) built on blockchain — everything from finance to gaming to web browsing to collecting art.

Though most DApps are built with Etherium, all dApps are built using blockchain technology. These DApps rely on blockchains to process data through distributed networks and execute transactions with smart contract. Smart contracts are automated, self-executing agreements that make transactions between two parties seamless, quick, and automatic. They are the key element of DApp technology and can be combined to create powerful software which can be applied across different industries.

Just like developers build applications for mobile and desktop devices, DApp developers create applications to function on specific blockchain networks. The vast majority of DApp development is on the Ethereum blockchain. As a result, the Ethereum blockchain supports the vast majority of activity across the DApp ecosystem.

Advantages and Disadvantages of dApps

Advantages

Many of the advantages of dApps center around the program’s ability to safeguard user privacy. With decentralized apps, users do not need to submit their personal information to use the function the app provides. DApps use Smart Contract to complete the transaction between two anonymous parties without the need to rely on a central authority.

Proponents interested in free speech point out that dApps can be developed as alternative social media platforms. A decentralized social media platform would be resistant to censorship because no single participant on the blockchain can delete messages or block messages from being posted.

Ethereum is a flexible platform for creating new DApps, providing the infrastructure needed for developers to focus their efforts on finding innovative uses for digital applications. This could enable rapid deployment of dApps in a variety of industries including banking and finance, gaming, social media, and online shopping.

American cryptographer and computer scientist Nick Szabo introduced the term “smart contract” in 1996 as a graduate student at the University of Washington

Disadvantages

The use of dApps is still in the early stages, and thus it is experimental and prone to certain problems and unknowns. There are questions as to whether the applications will be able to scale effectively, particularly in the event that an app requires significant computations and overloads a network, causing network congestion.

The ability to develop a user-friendly interface is another concern. Most users of apps developed by traditional centralized institutions have an ease-of-use expectation that encourages them to use and interact with the app. Getting people to transition to dApps will require developers to create an end-user experience and level of performance that rivals already popular and established programs.

The challenge of doing code modifications is another limitation of dApps. Once deployed, a dApp will likely need ongoing changes for the purposes of making enhancements or to correct bugs or security risks. According to Ethereum, it can be challenging for developers to make needed updates to dApps because the data and code published to the blockchain are hard to modify

Pros

• Promotes user privacy
• Resists censorship
• Flexible platforms enable DApp development

Cons

• Experimental, may not be able to scale
• Challenges in developing a user-friendly interface
• Difficult to make needed code modifications

DApps in the OnePad ecosystem

DApps is an important component in OnePad’s ecosystem. We provide a platform enabling developers to easily blockchainize their products on a new programming language without time — or resource-consuming, increasing the accuracy of deploying smart contracts and allowing the products to be implemented on different blockchain platforms through only one SDK for a local marketplace.

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