Over the past few years, decentralized applications have become a game-changer in the blockchain industry.
It’s exciting to observe how powerful decentralized applications can be developed to improve the business environment. Additionally, one can find some intriguing decentralized application examples that can serve as a guide.
A study by the Blockchain Examiner found that by 2025, the market for dApps will be worth about USD 21,070.2 million.
We will debunk several myths about decentralized applications in this blog post. And how companies can use them.
What are Decentralized Applications (DApps)?
The fact that blockchain is the underlying technology of dApps is among the first things to comprehend. Thus, it will aid in understanding Blockchain dApp Development if you are already familiar with its functions.
Blockchain dApp Development, or dApps for short, are digital applications that operate on a distributed or peer-to-peer network. They don’t have a centralized authority. Thus their user community is the only source of performance.
Another important consideration is that every transaction is visible to everyone in the loop and is permanently preserved. Here are some significant characteristics of dApps to have in mind.
- Open Source: The dApp’s codebase is accessible to everyone for review because it is an open-source project.
- Decentralized: One benefit of dApps is that they are not subject to centralized control. Why does this matter? It indicates that the centralization aspect is avoided when all operational records for a dApp are kept on a public, decentralized ledger (blockchain).
- Protocol: To provide proof of value, the community developing the decentralized app must agree on a cryptographic method. So, for instance, Proof of Work is now used by both Bitcoin and Ethereum (PoW). Ethereum is working on a hybrid Proof of Work/Proof of Stake system (PoS).
- Incentive: Those familiar with Blockchain dApp Development operates knows that the application must use and offer particular tokens, much like the technology. Additionally, the apps provide users on the network with digital assets as payment for validating blocks on the chain.
Ultimately, with the development of Blockchain dApp Development, dApps are starting to blossom. You will want to unlock the full potential of dApps as C-suite executives.
Different Types of DApps
It will be useful to be aware of the different types of DApps because they are inventive and feature-rich.
Decentralized apps, or dApps, are frequently divided into the following three groups:
1. Based On The Blockchain Type Used
- The dApps in Type 1 have their blockchains, such as Bitcoin.
- Type 2: The dApps use the Type 1 apps’ blockchain in this category. The apps are protocols and therefore require tokens to work. The Omni Protocol is an excellent instance (a trading platform developed on the Bitcoin blockchain as a layer.)
- Type 3: In Type 3, dApps employ the Type 2 application’s protocol. The SAFE Network is a prime illustration (Secure Access for Everyone). By facilitating the issuance of SafeCoins, which may be used for its functional elements, it optimizes the Omni Protocol.
2. Based On Their Purpose
Decentralized apps can also be categorized based on their intended use.
- Users will find options to manage their fiat and cryptocurrency finances in these financial apps. The users of the dApps can also control their money, wills, and other things.
- Decentralized finance, also known as DeFi, is a good illustration. DeFi refers to financial apps built using blockchain technology. In recent years, crypto fans’ interest in the DeFi market has increased, attracting investors from all around the world.
- Apps in this category are partially financial and include managing money. That, however, is only one of the objectives. Examples include bonuses and point structures in loyalty programs and gambling applications.
- Non-financial apps: In this category, the programs are unrelated to finances. Examples include decentralized file storage, polling and voting services, personal identification services, and more.
3. Based On Popularity
It’s worth investigating some of the most fascinating and well-liked dApps. Here is an early look.
- Exchanges: Decentralized Ethereum-based exchange IDEX enables users to link their current wallets, such as Metamask or Ledger hardware, and trade ERC-20 tokens.
- Gambling: Decentralized gambling apps are a common subset of dApps. The EOS and Ethereum Blockchain dApp Development are both used by the applications. These dApps enable quicker, more smooth transactions with little costs for casino operations.
- Virtual Reality: An outstanding illustration of an Ethereum-based virtual reality platform is Decentraland. Users of this platform can develop and sell applications.
DApps nowadays have the potential to change the game. As a business entrepreneur, you should keep a close eye on the fast-expanding dApp scene. You can implement dApps to enhance your business and assess how it will affect yours.
How Can Businesses Leverage the DApps?
So, the crucial query is: How might dApps benefit your company? Let’s look at some important numbers first.
2. Security and Identity Protection
Security was just brought up; therefore, let’s stress its importance again. You can anticipate safeguarding people’s identities with a secure identity platform that uses blockchain technology.
Now that online or mobile app access requires a secure login and registration, you can relax knowing that only the right people have access.
3. Business Intelligence and Invoicing
The employment of dApps in invoicing is yet another intriguing area. Decentralized blockchain apps, in this case, provide business intelligence and invoicing services to their consumers.
As a result, performance benchmarking, scenario analysis, trend identification, and other activities are now possible. Additionally, all data is recorded via blockchain, guaranteeing its confidentiality and correctness.
4. Zero Downtime
When smart contracts are implemented at the blockchain and app’s core, dApps enable improved client facilitation and zero downtime.
5. Complete Data Integrity
Data can now be stored on the blockchain and enjoy indisputability and immutability thanks to cryptographic primitives. Additionally, harmful acts like falsifying transactions or other data cannot be taken once data is made public.
6. Cost of Development
One must consider several elements when creating a typical app, including the price of cloud server fees, maintenance costs, and more.
Blockchain developers don’t have to consider these issues with dApps, as the cost of a dApp includes deployment, upgrades, and development.
What Does the Future Hold for DApps?
DApps will keep expanding rapidly through 2021 and beyond. Therefore, anticipate the dApp ideal to stay the same. You may expect it to develop and broaden its uses, transforming the commercial environment.
Let’s briefly look at two examples to understand how decentralized applications might aid the sector.
Let’s examine a resource essential to our daily existence: electricity. The energy industry is largely under the hands of big businesses, all of which have the same goal: to maximize profits.
People, therefore, have little choice except to acquire electricity at exorbitant prices. Here comes Power Ledger, a blockchain company that creates a dApp to address this issue.
Power Ledger hopes to enable users to sell their spare electricity through a peer-to-peer marketplace.
The project encourages using renewable energy sources like solar electricity and ensures that customers pay a fair and upfront price. Additionally, the strategy anticipates eliminating the need for middlemen (big corporations), who would generally take a substantial profit share.
Voting in a government election is yet another area, which is a crucial human right for everyone. Threats, violence, and voting fraud are all things that are frequently reported. Decentralized apps would be very advantageous for politics.
A great example is a team of programmers who created FollowMyVote.
Through the app, users can cast their votes on the Ethereum blockchain. Elections can now be held safely, securely, and transparently thanks to a decentralized application that can verify voters’ identities.
The voting process can continue to be free of fraud, thanks to FollowMyVote. Additionally, each vote is independently confirmed on a public blockchain and is unchangeable.
Conclusion: Decentralized applications will continue to make their presence felt in the commercial world, bringing down prices and eliminating third parties.
Additionally, dApps can advance automation and transaction security. Additionally, the increasing number of dApp releases will create new opportunities for business owners in various industries.
Notable Real-World Examples of DApps
dApps are intriguing due to the potential for lowering development time, boosting security, and enhancing scalability. One can always look at some well-known apps to learn more. Here are a few notable real-world instances.
Golem is a decentralized, open-source supercomputer that anybody can use. The combined power of all the computers that run Golem gives it its strength.
People can rent out their enormous computational capacity to other users. What does that suggest? It implies that the network might establish a global computing power market.
Another excellent example is Augur, a dApp that aids in developing a forecasting tool to increase trading profits. How does that function? Prediction markets and a decentralized network are thus combined in the dApp.
Digital asset administration is made easier with the exciting decentralized program Melonport. Technology allows users to build or finance competitive digital asset management strategies.
Additionally, the application guarantees a transparent and auditable history, enabling a whole new asset management method.
Consider decentralized tweeting if you like using Twitter. The unique microblogging platform EtherTweet utilizes the Ethereum blockchain.
However, the posted content on EtherTweet enjoys immutability because it is a decentralized application (dApp). Hence posts cannot be removed.
The Lightning Network
By moving transactions off-chain and boosting the throughput capability of the Bitcoin network, the Lightning Network was developed to address the scalability issue with Bitcoin.
Users can design their internal payment channels thanks to the framework. Because these channels are formed between two users, it is anticipated that the transactions made through them will be very quick and inexpensive.
Factom is a fascinating decentralized platform that functions as a top layer of the Bitcoin blockchain.
The platform has been created to store an infinite amount of secure data. Additionally, it may save contracts, papers, applications, and more.
Everipedia is a wiki-based public, all-encompassing online encyclopedia. It has continued to carry out its aim to make knowledge accessible to everyone and on-chain through the IQ token, even after transitioning to the EOS blockchain platform in 2018.
A decentralized platform for producing and hosting digital entertainment content, TRON is a blockchain initiative. The venue is a global entertainment network that runs on the blockchain without a central authority. 888 TRON is one of the most well-known TRON gaming platforms. The decentralized gaming platform wants to be the largest online gambling site on the TRON blockchain.
A non-custodial scaling method is the OMG network (formerly OmiseGo). Users can send ETH and ERC20 tokens much more quickly and cheaply than they can on the Ethereum network.
Here are some additional excellent applications to keep an eye out for:
- Uniswap—a decentralized financial protocol used for cryptocurrency trading.
- IDEX—an advanced exchange for cryptocurrencies.
- MakerDAO—a premium decentralized stable cryptocurrency that is impartial.
- CryptoPunks—using the Ethereum blockchain to offer non-fungible tokens.
With such notable success tales, it’s time to consider investigating dApps.
The business environment will drastically shift as dApps become more popular. There are several use cases for decentralized apps today, which forgo centralized servers in favor of distributed and peer-to-peer (P2P) transactions.
As business owners, you will be eager to grow your enterprises while enhancing dApp capabilities. Blockchain-based apps will advance quickly with Blockchain dApp Development as it continues to evolve. It’s time for you to prepare yourself to explore this area and reap the rewards!
- The dApp market capitalization was estimated to be $10.52 billion in 2019 and is projected to grow at a CAGR of 56.1 percent to $368.25 billion by 2027, according to Emergen research.
- DApp usage has increased by 626% during the past year.
If we examine the numbers, it is clear that there is a growing need for dApps. dApps are superior to standard mobile apps in terms of transparency, dependability, adaptability, and scalability.