Once again, thanks for tuning in. Holly Shields here for Kalkine Media. Lets
talk Decentralised Applications or DApp. Before we get into it,
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Decentralisation means independence or having separate control from a group.
A decentralised application (DApp) is therefore built on an independent peer-to-peer network
blockchain. A DApp has its own backend code, frontend code and user interface.
Its' frontend can be hosted on a decentralised storage. DApps do not need a central authority to
function. They allow direct interaction between users and application providers. DApps perform
irrespective of their network environment. It means giving the required computational resources,
DApps can perform any action individually. Even if there is a bug in the operational network,
it won't affect the functioning of the DApp. DApps are decentralised because of the inherent
coding logic. Therefore, DApps require careful designing and testing.
Generally, DApps have some common features: Decentralised Applications run on a blockchain
network. The backend code of a DApp runs on a blockchain.
DAPPs also store all their data on a blockchain. Often, they have open-source code.
DApps operate autonomously without any person or group controlling majority tokens.
DApp tokens are created and used to provide value to the contributing nodes.
Users can exchange tokens; access is granted to them.
DApps facilitate decentralisation along with secure blockchain data. Because of this,
they can have various use cases. A few utilities of creating a DApp are:
It facilitates money management; users of DApps can transact with each other over a blockchain
network, using the blockchains intrinsic cryptocurrency. For example, the CTSI token
of the Cartesi blockchain network can be used for money management and transactions over it.
Users can even mine for more cryptocurrency or trade them for other tokens or fiat currencies.
DApps also allow payment processing. There is no need to integrate with a bank or a fiat
payment provider to process payments. Users can transact directly using cryptocurrencies they
have mined or traded on the blockchain. Anonymous transactions are facilitated.
Verification of user credentials is not needed on DApps.
They use a system of public and private keys, with which users can transact transfer data easily.
The degrees of anonymity may vary for each DApp. However, they end lengthy registration processes
earlier required for transactions. It facilitates data security and audit
on the blockchain. DApps provide users with a way of incurring secure, auditable transactions
or transfers. The open-source DApp code is easily accessible and very much understandable to users.
It has inherent transparency and security of the enclosed data. Since it works on blockchain,
the data is even auditable and easy to access by third-party auditors.
DApps do have some advantages over regular applications.
They are fault-tolerant as they do not have a single point of failure
and are distributed by default.
DApps prevent violation of net censorship since no central authority can govern it.
Blocking a DApp's domain or IP address is impossible,
as DApps are not accessed via a particular IP address or domain. Though governments can track
individual nodes in the network and shut them down, a DApp has numerous dispersed nodes.
It is easy for users to trust DApps as they are not controlled
by a single user who could cheat others.
But, DApps cannot be termed foolproof.
Like every other system, even DApps have certain disadvantages. As for a few of these:
It is challenging to fix bugs or update the DApp since all peers on
the network need to update their node software. Some DApps may require identity verification.
The level of identity secrecy varies, but there is no central authority doing so.
It is challenging to build DApps since they have complex protocols for consensus. Part by part
building and implementation of an idea is difficult due to the reasons mentioned above.
Scaling the DApp is also not easy as security, transparency, and trustworthiness are needed.
Every node runs and stores every transaction on a DApp,
which makes processing a bit time-consuming.
Now that you’re up to speed, check out some of our other videos to boost your financial IQ.
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our website kalkinemedia.com. This has been Holly Shields for Kalkine Media.