For those new to the crypto market, “dApp (decentralized application)” is a phrase that will be heard a lot. So what are dApps and what are their applications? Let's find out through the following article.
What is dApp?
Dapp (Decentralized Application) are decentralized applications, built on a decentralized network that supports Smart Contract (smart contracts) and Frontend interface for users. These applications will focus on solving problems in a certain field.
Since decentralized applications are built directly on blockchain platforms, the nature of these decentralized applications will depend on those blockchain platforms. For example, transaction speed, TPS (transactions per second), scalability, stability, etc.
The first Decentralized Application appeared on Ethereum on April 22, 2016.
Characteristics of dApps
The common characteristic of DApps is decentralization, so no one can control user activities on these projects. In addition, the trend of decentralized applications in crypto is often open source, the community can create other projects from the code of old decentralized applications.
To build a decentralized application, the blockchain platform must have a Smart Contract. Contrary to many people's belief that any blockchain can create an ecosystem with hundreds of applications, only blockchains that support Smart Contract can support building this application.
The next characteristic is that decentralized applications often share the same development steps, including idea generation, Whitepaper publishing, token creation, token distribution,...
Classify
If divided by application, dApp can be divided by purpose of use such as: exchange, games, finance, gambling,...
If divided by blockchain, DApps will be divided into 3 types:
Type I will operate on their own blockchain. For example: Bitcoin and Ethereum.
Type II are protocols that operate on the type I blockchain. These protocols themselves have tokens necessary for their function.
Type III are protocols that operate using Type II protocols. Similar to type II, type III also has tokens necessary for their function.
dApp application
dApp was born to solve a specific problem. For example:
To solve the payment problem.
To solve trading problems, like how DEXs like Uniswap, PancakeSwap, work...
Some projects work on more "abstract" areas, such as Oracle used to bring real-world data into crypto, or those working on infrastructure,...
Talking about practical applications, there are also some dApps that work in the medical field, or serve charity,...
In short, dApp is a big step forward in the development trend of blockchain. With Smart Contract, users can create dApps to serve their own needs, or further serve the community, thereby bringing in big profits. Overall, the number of dApps will increase in crypto based on the benefits it brings.