Everyone has a smartphone these days, and each of those smartphones has different “applications” or “apps” running on them. An app is a digital tool that runs various types of programs, such as: B. Social media, messaging, banking, gaming and work stuff. All applications run on the operating system of your smartphone – usually Apple or Android. Likewise, your PC or laptop has programs and applications that run either under the Microsoft or Apple operating system.
In the cryptocurrency space, these applications are called “dApps” or “decentralized applications”. These are applications that are based on the Blockchain-Technology and not on the operating system of a smartphone or PC. These dApps are permissionless, trustworthy and transparent, in contrast to conventional applications, which are normally controlled and monitored and can abuse the privacy of the users.
“DApps” are developed by code to create smart contracts on the blockchain. Instead of a single computer running the program on, it is run by a network of hundreds and thousands of computers around the world because it is based on blockchain technology. “DApps” can only be programmed and executed in smart contract networks, such as Ethereum Blockchain. Bitcoin can’t do this since its only purpose is the Cryptocurrency is.
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What are the advantages of dApps?
Since dApps are built on the blockchain, their code is essentially transparent. Practically everyone can look under the hood and read the code of the dApps they are using. Unlike apps like Facebook or Google which are hidden and controlled, you can look at the dApps code and see how the nuts and bolts work.
You may not have been able to log into your banking app because it is performing routine monthly or quarterly maintenance. You may have seen Facebook or Instagram suddenly stop loading new posts from time to time. Applications and programs can go offline due to maintenance work and in extreme cases they can even be closed permanently.
You will never experience this with dApps, as they are built on the blockchain. Thousands of computers around the world that make up the blockchain network would have to go offline first before this could happen. Realistically, it would be practically impossible to turn off all of these computers.
Resistant to censorship
dApps are also resistant to controls from external factors. Since they are decentralized, no government or powerful institution can shut them down. Just recently we saw China bring down game companies and other innovative tech companies along with their billionaire owners. We have also seen the US Federal Reserve, with the help of the US Treasury, overprint money, creating an inflationary environment in the country. As a result, the US dollar is continuously losing value. We also see the major social media networks like Facebook and Twitter directly banning controversial individuals without due process.
None of these forms of control and censorship has a place in dApps. You are in control of what you want to do in the blockchain space. You are in control of your money and the government cannot take it away or print more of the cryptocurrency you hold because they have no power over it. There will be no ban on dApps, as is the case with major social media platforms today. Since dApps are built on the blockchain, they won’t respond to any government, company, or social media mogul. The environment is free from censorship and control.
On which blockchains can you build dApps?
There are several smart contract networks or blockchains in which you can create your own dApps. Here are the topBlockchain-Platforms:
1. Ethereum network
This is the groundbreaking platform in the cryptocurrency space developed by the genius programmer Vitalik Buterin. Most of the dApps you see today were created on this network and as such it is the most active and well known. There is a large community of developers and users who have been using the platform for a long time and it has built a reputation for trust and reliability in the cryptocurrency space.
2. Close to the network
The near network is the next generation blockchain trying to overtake Ethereum. Its goal is to be more scalable and faster than most blockchain networks. It is also characterized by low transaction costs and a flexible interface for faster dApp developments.
Solana has slowly become a favorite in the cryptocurrency market due to its powerful blockchain network. Its technology can process thousands of transactions per second at a fraction of the cost that Ethereum May offer.
Popular industries for dApps
With the advent of dApps in the blockchain, several industries have emerged. Here are the three most popular industries that are thriving on the blockchain:
1. NFT Marketplace dApps
You may have heard of NFTs, or “non-fungible tokens,” on the news as they have grown in popularity this year. NFTs have conquered pop culture, with art leading the way. These NFTs are bought and sold in so-called NFT Marketplace dApps. These are simply marketplaces where you can buy, sell, create, and coin a NFT. The most popular NFT marketplaces are Opensea and Rarible.
Decentralized finance dApps have also become a popular industry today. These dApps have created a completely new digital and decentralized banking ecosystem in the blockchain. You can borrow, lend, and stake your crypto through these platforms. You can become a liquidity pool provider to earn interest, or you can simply invest and trade in various cryptocurrencies on decentralized exchanges (DEXs).
3. Gaming dApps
You might have heard of the game’s sudden popularity Axie Infinity heard. It is an NFT based play-to-earn game that allows you to earn cryptocurrency just by playing the game. This is also a Smart Contracts dApp that is NFT based but with a gaming utility. Similar games like Cryptokitties, Splinterlands, Alienworlds, and Mobox have grown in popularity especially during the pandemic when people mostly sat in front of their laptops and PCs. Gaming dApps are a fun way to experience both blockchain technology and cryptocurrency.
Source: Crypto News Deutsch