All you need to know decentralized applications ( DApps )

03JAN

Decentralized application (DApps) is one of the most interesting technologies based on blockchain networks. The goal of building a decentralized program can be anything. These types of apps have advantages over traditional ones. Features, construction, application, advantages and disadvantages are other topics that are discussed in this article from Coinmarketsig.com.

Decentralized Applications

What are decentralized applications or DApps?

Decentralized program is a software program that allows users to interact with networks such as Ethereum.

To be more precise, a decentralized application is an interface that allows users to communicate with “smart contracts” stored on a “distributed and decentralized” network which is blockchain-based and peer-to-peer.

Decentralized application is very similar to traditional web-based applications such as Gmail or Uber. The decentralized application’s front end uses exactly the technology used in other applications to display the page, but the background uses a different technology than Internet-based applications.

Instead of connecting an API to the database, there is a smart contract that connects to the Ethereum blockchain. In addition, decentralized applications, as the name implies, do not require centralized human or database intervention to operate or manage user data.

Let’s review some terms about decentralized applications:

Smart contracts: A smart contract is a type of computer script that is hosted on the Ethereum network. This script is programmed to perform certain functions if certain conditions are met. For example, a smart contract may start distributing tokens when Ethereum is sent to a specific Ethereum address.

Distributed and decentralized: This means that the decentralized program is hosted on many computers and is not controlled by any entity.

Blockchain: Blockchain is a distributed general ledger and a type of database stored on a large number of computers.

Ethereum network: Ethereum is a cryptocurrency network that uses blockchain technology. However, the Ethereum network can be thought of as a distributed computing system because its capabilities go far beyond dealing with cryptocurrency tokens.

Features of decentralized applications or DApps

Although decentralized applications have recently entered the market with their many uses, they have become very popular and in high demand.

According to the general theory of decentralized programs, any decentralized program must meet the following criteria:

1. The program must be completely open source, operate independently, and have no control over the majority of tokens. Changes in the program must be agreed through the consensus mechanism algorithm.
2. In order to avoid central failure points, the data must be stored encrypted in a distributed blockchain.
3. The application must use an encrypted token to access the application and as a reward for network sponsors.
4. The program must generate tokens according to an algorithm that values ​​system participation.

What is the difference between DApps and mobile apps?

Decentralized applications rely on a peer-to-peer network to host their back end modules, which distinguishes them from regular applications that typically use a single server. Decentralized programs run on similar nodes in a peer-to-peer network where each node is controlled by a different entity.

Dapps

Differences between regular and decentralized programs

The main difference between a decentralized application (DApps) and a centralized one is that the former lacks any central decision-making nodes. Codeback Traditional and centralized programs run on a centralized server. In contrast, decentralized application backend code runs on a decentralized network.

This important difference has several advantages for decentralized applications:

1. Error tolerance. In standard programs, failure of the central server causes the program to stop. Yet, this problem does not exist in decentralized applications since the failure of one network node will not have a significant impact on the entire network.
2. Ability to resist the influx of requests. In general, the computing power of an entire decentralized network is greater than the power of the server. This means that a sudden influx of users does not cause the program to slow down or malfunction. This is true for both legal users and distributed denial of service (DDoS) attacks.
3. Developers of standard applications are forced to increase their server capacity as the number of appeals increases. However, in decentralized programs there is no such need because the capacity of the network increases with the number of participants.
4. Resistance to unwanted changes and censorship. The lack of a single control center makes it difficult to change features of the program that are not approved by participants and to censor its content. Users of decentralized applications usually have complete control over their data and assets and own them.
5. More security. The centralized processing unit has various security vulnerabilities and sets the stage for hacker attacks. This is why decentralized applications are so much more secure than regular applications.
6. No need for intermediaries. Traditional programs rely on intermediaries to complete transactions. Decentralized applications directly connect users and service providers.
7. No interruption. Decentralized applications continue to operate even when network nodes are offline.

Of course, the above diversities have disadvantages as well:

• It is difficult to innovate and upgrade compared to regular programs.
• Not suitable for applications with a small number of users.

Features of decentralized application or DApp

Decentralized applications have other distinctive features:

1. Decentralized applications are usually open source. Anyone can check the source code of these programs and this will increase their trust.
2. Decentralized applications use their own digital currencies (tokens) that allow users to access certain features.
3. All network decisions, including transaction validation, are based on a decentralized consensus.

Types of decentralized applications or DApp

One of the most common ways to classify decentralized applications is by the type of blockchain they use:

1. Applications built on your blockchain. Bitcoin and Ethereum are the most popular examples of this type of decentralized program.
2. Programs that run on blockchains of type one programs but use their own tokens. For example, the decentralized program Augur is built on the Ethereum blockchain.
3. Programs that use Type 2 source code to run. An example is Safe Network, which uses the Type 2 security protocol program to issue its tokens.

Another way to categorize decentralized programs based on their purpose is:

1. Financial plans. Provides users with tools to manage their finances, including Fiat and currency code. Assist users in managing savings, wills, etc.
2. Partly financial plans. They involve working with money, but this is not their main goal. Reward and scoring systems in loyalty programs as well as gambling programs are among these applications.
3. Non-financial programs. Such programs have nothing to do with money. These programs may include personal identification services, such as polling and polling, decentralized file storage, and more.

Benefits of Decentralized App or DApps

The followings are the benefits of Dapps:

Being automatic

Decentralized applications are based on smart contracts; Self-executing contracts that are written in code and allow for automation. This feature can drastically reduce transaction costs and allow transactions to be performed smoothly and on a peer-to-peer basis. Automation also reduces costs for employees, auditors, legal advisers, and more.

Transparency

Decentralized program data is stored in a general ledger that records everything securely and transparently so that no one can manipulate it. This creates transparency and eliminates the need for intermediaries to communicate with customers.

Privacy

Using blockchain eliminates the need for users to create an account. The decentralized application detects users using valid blockchain encryption. This increases privacy and ease of use.

User sovereignty and autonomy

Decentralized applications, based on their decentralized nature, operate on the consensus of all users, ensuring that no one can dominate the entire network. This consensus includes a consensus on the cryptographic algorithm used to prove the value. Also, in case of any change in the code of the decentralized program, consensus is needed.

Open sourced

The code of decentralized programs that are open source (text) can be easily viewed and checked. This makes the whole ecosystem more flexible, faster to develop and more secure to develop because of the ability to enter more input information.

Error tolerance

Because these programs are decentralized and not based on standard client/server networks, no single node controls all transactions or records. In other words, there is no breaking point in these programs that can disrupt or corrupt the entire program.

As a result, decentralized applications are more stable and secure than traditional applications, have no downtime, and are always accessible.

Incentive approach

Decentralized programs have an incentive mechanism in the form of tokens or digital assets. Tokens are used to encourage blockchain validations or as bug detection rewards in the program. This approach is useful for both the developer community and users, and leads to more interaction and interest in decentralized applications.

Developing and deployment a decentralized application process

To develop a decentralized application, several steps must be taken to ensure that the final product meets the intended purpose. The following programming languages, frameworks, and blockchain protocols can be used to develop decentralized applications:

Programming languages: JavaScript, TypeScript, Go, Solidity, js

Frameworks: Angular, React, React-Native, Ionic

Blockchain protocols: Ethereum, EOS, Hyperledger, Celo, Polkadot

The process of developing decentralized applications includes the following steps:

1. Business and technical analysis

The first step involves analyzing the commercial use of the decentralized application. This analysis involves gaining a detailed understanding of the purpose of the program and how to solve the problem for which it is designed.

Once the root cause of the business plan has been identified, a technical analysis is performed to determine how blockchain can help solve the problem and what platform to use.

If you’re already sure about how to develop your decentralized program, you should now review your plan to identify possible changes and upgrades.

1. Architectural Design

Once the application is used, a preliminary design of the decentralized application architecture must be performed. The purpose of this design is to create proof of concept (POC) and to get an overview of how all parts of the decentralized program fit together.

Architectural design also includes a blueprint for how the front end layer, the user interface, and the backend layer interact — smart contracts, storage, and blockchain.

1. High quality and low quality designs

After agreeing on a decentralized application architecture, both high quality and low quality design prototypes are created. Qualitative design includes elements such as visual design, content and interaction.

Low quality initial design is used to further display the appearance and performance of the program. After displaying these aspects of the program, a high quality design is created that eventually becomes a usable prototype.

1. Development of smart contracts/wallets

The next step involves creating smart contracts that connect the decentralized application to the blockchain and execute the logic and functionality of the application. Wallets are also being developed at this stage to allow tokens to be exchanged in a decentralized application.

1. Front end or back end development

At this stage, the quality designs are transferred to the development stage and the front and back layers are finalized. Front End can be created in any programming language that can communicate with backends via EPI.

1. Internal Audit

Internal audit is performed to review previous development steps and ensure that all requirements and specifications are met. During the audit, tests are also performed to check how the various parts of the decentralized program work.

1. Establishment of experimental network (net test)

Once the audit is completed and potential problems are identified and resolved, the decentralized program is deployed in a test network. At this stage, developers and customers can test the decentralized application at no cost and evaluate its performance as expected.

1. Main Network Deployment (Main Net)

The decentralized application is deployed on the main network that it eventually works on and is made available to users.

Centralizing Apps

Application of decentralized applications (DApps)

In the last few years, the production of decentralized programs has accelerated significantly, and there are now thousands of programs on the market that cover a wide range of areas. Many common applications can now be found in the form of decentralized applications. Although the variety of decentralized applications may not satisfy users, there are definitely applications that can meet the needs of each user.

Most popular uses of decentralized applications are:

Trading

Decentralized applications such as Uniswap and Aave allow users to trade their currency passwords securely and anonymously.

Social media

Social media has also contributed to decentralized applications. One of these is the popular Steemit social blogging platform.

Gaming

There is a wide range of decentralized app games on the market, including AnRKey X, Blockchain Cuties, and My Neighbor Alice.

Entertainment

The decentralized software industry has its own version of YouTube called DTube. Ditube is a video sharing platform with blockchain technology.

Unlike regular applications, which usually require download and installation before use (unless the application is web-based), decentralized applications are generally accessible through a decentralized application browser (such as Metamask or Browser) and do not need to be installed.

The future of decentralized applications

Currently, the number of decentralized applications is increasing rapidly. By the first quarter of 2021, more than 3,500 decentralized applications had been registered on the website. At the same time, the decentralized software industry is in its infancy. For now, we can only speculate about the industries that decentralized programs will turn to. Some of these industries are:

• Banking
• Gambling
• Real Estate Advisor
• Energy
• Elections and voting
• social media
• Internet of Things
• identity confirmation

In conclusion

Decentralized application (DApp) can have a wide range of applications in the world of digital currencies and blockchain. Applications that play a very important role in increasing the acceptance of digital currency projects. It goes without saying that the development of these programs is not just a few years longer and they are at the beginning of their path.