The dapps are the new evolution of the applications we use on our smartphone every day.
It is a new frontier of evolution linked to the internet and the world of blockchain.
In fact, with the advent of Bitcoin, a new conception of the internet and therefore of the technology linked to it has been introduced.
We have seen how a distributed ledger can be something better than a centralized system.
This is because there are problems ranging from the limitation of content up to the limitation of earnings.
And that’s why with the cryptocurrencies this ecosystem has been created that will soon be used as if it were for example Facebook or youtube.
In this article I want to talk about dapps, how they work and why they can be better than the normal applications we normally use.
The blockchain and cryptocurrencies
Before we start talking about decentralized applications let’s talk about blockchain and precisely cryptocurrencies to understand the system.
When Bitcoin was introduced for the first time, a new system was introduced which is different from the schemes we know.
This is because it has brought a new technology that changes the knowledge that we had before both the internet and all its ecosystem.
The first important thing that has occurred is the function of distributing a system in which the consent to make an action is decided by several actors.
This is quite different in a centralized system in which the action is decided by a single body that decides for everyone.
That’s why the blockchain allows greater autonomy unlike a centralized system.
It is from here that we start to develop a new concept and therefore a new system in which you can have other forms of technologies.
With the introduction of new projects in the Blockchain field such as Ethereum, the function of creating smart contracts has been introduced.
By using this type of contracts that is on blockchain, you have the possibility of using some functions that we would not have in traditional systems.
These platforms use these Dapps internally which interact with the platform itself and send smart contracts in order to function.
A smart contract is nothing more than a system in which it encloses information in the form of codes and transcribes it on the blockchain.
Dapps and smart contracts
As I said before, with the introduction of smart contracts, a function has been created in which new systems can be created.
These systems are the Dapps (decentralized applications) which are applications that work on blockchains.
In order to function, in addition to the blockchain, they must also be able to exchange information between the blockchain and the user who uses them.
This function is precisely provided thanks to smart contracts that thanks to their ability can make blockchain-user interact.
An example of a decentralized application is Decentraland, in which it consists in having a game based precisely on blockchain and uses smart contracts.
In the game, if I go to buy a piece of land for example, a smart contract is created where my name is written inside it next to the ground.
All this is transcribed on the Ethereum blockchain and therefore as long as both the game and ethereum exist, that terrain is next to my name.
If I want to sell that land, then all I have to do is transfer the smart contract to another by confirming via a wallet.
The important thing about this whole system is that everything works with the blockchain, otherwise you would not have these functions.
And that’s why in this context a distributed system allows you to perform functions that in a centralized system we would not have the possibility
There are other practical examples of decentralized applications, but the operation is the same.
Characteristics of dapps
These applications have both positive and negative characteristics compared to normal applications.
This is because the system is going to improve one thing and make another worse.
But let’s see what are the main features and what are the problems that a dapp can have.
Positive
- Certainly the main thing is that it is a distributed system that is difficult to modify;
- You have the opportunity to sell or buy smart contracts that are used internally;
- Every action that takes place inside is stored in a blockchain;
- Many dapps also use tokens to be able to do certain actions.
Negative
- They are subject to the main platforms, for example on ethereum you pay commissions to be able to make an operation;
- They still have little use and few users who use them;
- Many are non-functional projects and are often the subject of scams as they are still unregulated.
- To get a vision of what we have on the market just go to the Dapp.review site and see all the active projects.
- Those with higher volume and transactions are few and most are on platforms like Ethereum or Eos.
This is because they were the first to use the function of smart contracts and therefore allow the birth of this sector.
There are also many decentralized applications that go in the field of DeFi and in the field of investments.
Many, however, are those related to gambling and which have very few users but with many volumes in transactions.
The reason is that they are fictitious projects that use robots to generate untrue volumes and attract new users in the hope that they will use them.
They often cause a slowdown of the platform that hosts them as in the case of CryptoKitties where in 2017 it caused a blockage on Ethereum.
In conclusion
This sector is still very young and looking for a balance as there are many projects but still obsolete tools.
This is because the cryptocurrency sector is still young, just think that Bitcoin was born only in 2009 but developed about 4 years ago.
Until before it was considered something related to scams ie the dark Web, etc., but only now it is being considered as a new system.
Then there are platforms like Ethereum on the other side that still have scalability problems, that is, they are slow and expensive.
This leads to higher transaction costs and less speed.
An entire sector that still needs that extra gear to be able to reach a higher level.