What is Decentralized Applications (dApp)

Decentralized Applications (dApp)

Decentralized applications (dApp) are distributed open-source software applications that operate on a blockchain network rather than a single computer. DApps appear similar to other software applications available on a website or mobile device but are P2P enabled. Identical to a standard web app, such as Uber or Twitter, it runs on a computer system owned and operated by an organization, giving it complete control over the app and its operations.

At the backend of every app, a single organization controls it for multiple users. DApps are decentralized; once a developer releases a dApp’s codebase, others can build on top of it. The app is entirely free. A decentralized application (dApp) helps to create various applications for decentralized finance, web browsing, gaming, and social media. Their bases are on a decentralized network and a blockchain-distributed ledger. The use of blockchain allows a dApp to process data and execute transactions across distributed networks.

In the following paragraphs, we will discuss

  1. Functioning of Decentralized Application
  2. History of dApps
  3. Advantages of dApp
  4. Examples of dApps

How does a dApp function?

Decentralized apps share three key characteristics and characteristics:

They are free and open source. Second, the majority of users agree upon all necessary changes. Third, it necessitates making the codebase available for evaluation to all users.

DApps are stored and executed on a blockchain system, most commonly Ethereum. The app is validated using cryptographic tokens, which are required to access the app. DApps are similar to traditional apps because they use the same front-end code to generate a web page. However, the backend code of a dApp is distinct in that it runs. It is what makes dApps free from the control of a single authority.

History of Decentralized Applications

The Web was not as valuable in its early days as it is today, with its plethora of services and apps that do everything, but it did have a more DIY distributed feel. From the beginning, the Web was reasonably decentralized. The HTTP protocol linked everyone who owned a computer and an Internet connection. According to the HTTP protocol guidelines, a set of trusted servers converts the web address you enter into a server address. HTTPS also adds a layer of trusted servers and certificate authorities. People would host personal servers to which others could connect, and everyone would own their data. However, application servers quickly took off, and the centralized data model was born. Why did it happen this way?

The straightforward answer is that it was simple, both conceptually and programmatically. It was the simplest solution, and it worked. One person or group pays for the upkeep of a server and profits from the users who use the software on it. MySpace and Yahoo! were among the first widely used centralized apps. Recent apps like Uber and Airbnb decentralize a company’s “real-world” components by providing a centralized and trusted data store. They are among the first to allow participation in a single money-making venture from all sectors of the economy. Their decentralized business model foreshadows the creation of even more decentralized applications.

Advantages of dApps

Many of the benefits of dApps revolve around the program’s ability to protect user privacy. For example, users of decentralized apps do not have to submit personal information to use the app’s functions. In addition, DApps use intelligent contracts to complete transactions between two anonymous parties without a central authority.

Proponents of free speech point out that dApps will be good alternatives to social media platforms. Because no participant on the blockchain can delete or block messages from being posted, a decentralized social media platform would be immune to censorship.

Ethereum is a versatile platform for developing new dApps, providing the infrastructure required for developers to focus on discovering novel uses for digital applications. It could allow for the rapid deployment of dApps in industries such as banking and finance, gaming, social media, and online shopping.

Examples of Decentralized Applications

Since they are distributed across the network rather than controlled by a single central server, dApps have been introduced in various fields over the last few years. This includes finance, online games, trading exchanges, etc. Following are some of the decentralized applications:


PopcornTime, similar to Netflix for torrents, uses the BitTorrent protocol to stream videos between users in real time. It is the Motion Picture Association of America’s worst nightmare (MPAA). No regulator can shut it down; everyone now has free movie access. PopcornTime proved to be an effective decentralized version of Netflix. The creators claim that people are downloading Popcorn Time in every country, including two that do not have Internet access. PopcornTime has no internal currency and no need for decentralized consensus, so a blockchain was unnecessary. It simply streams movies, which proved to be very useful.


The goal of OpenBazaar is to create a decentralized version of eBay. No intermediary has the authority to tell sellers what they can and cannot sell or to set the fees for using the service. Its bases are on the BitTorrent protocol, but the sellers must host their stores. They must have their server and keep it running for users to see their items. Ideally, sellers could simply upload their store data to the network, perhaps for a small fee, and get it done. It necessitates a decentralized system of incentivized storage miners. OpenBazaar transfers data using the BitTorrent protocol and accepts Bitcoin as payment for transactions between sellers.

1 Inch

1 Inch began as an Ethereum-based decentralized exchange, but it has evolved significantly over the last two years. Following its remarkable growth and expansion, the platform functions as a multi-network trading DEX. It enables users to tap into the liquidity of hundreds of other decentralized exchanges based on various blockchains. 

1 Inch is the preference of the traders who exchange large amounts of cryptocurrency to ensure transaction security and to obtain the best prices for their trades. Furthermore, it includes some advanced trading tools, such as limit orders. The flexibility and variety of options have earned 1 Inch the reputation of being the industry’s best DApps.

The native token, 1INCH, provides even more benefits to holders. It, for example, significantly reduces the Ethereum gas fee and makes the trading experience even more efficient.


OpenSea is the market leader in the NFT trading market. It was the first NFT marketplace to gain mainstream attention in December 2017. The Ethereum network initially aided the building of this network, but it was later integrated with the Polygon blockchain to reduce transaction fees.

OpenSea currently hosts over 10,000 different NFT projects. It includes some of the most well-known names in the NFT industry, such as Bored Ape, Yacht Club, Crypto Punks, The Meebits, and others. There are over 200 NFT categories on the site, including in-game possessions, skins, collectibles, real estate, metaverse objects, etc. OpenSea has over 1.5 million active users and supports up to 150 cryptocurrencies.


The 2014 Hong Kong democracy protests became a famous use case for FireChat. China’s infamous “Great Firewall” is notorious for blocking IP addresses for content deemed pro-democracy or not in its interests. Protesters feared that the government would try to block access to various social networks to stifle collaboration, as is possible with the HTTP protocol. So instead, they used FireChat, an app that took advantage of a new feature in iOS 7 called multi-peer connectivity, which allows phones to connect directly without using a third party. Because there was no single point of failure, the government manually shut down each node, allowing protestors to communicate effectively.


These smart contracts, similar to Kickstarter, allow people to donate money to specific projects. After completing the project goal, you can retrieve finds from the backer’s lighthouse wallet. Pledgers can cancel their pledges at any time without involving the project creator. Lighthouse is an excellent example of building your app on top of existing Bitcoin infrastructure. It is simply a user interface with some Bitcoin intelligent contracts constructed as a wallet. It has decentralized consensus, is open source, and has no single point of failure, but it doesn’t issue its currency; instead, it uses Bitcoins. It’s a valuable dApp, but it’s not profitable for the creator.


MakerDAO is an Ethereum-based DApp that provides credit services. Users can use the platform to lock their ETH tokens as collateral and receive DAI tokens in exchange. DAI is a stablecoin with a value tied to the US dollar.

Stablecoin is essential to the DeFi space because it enables traders to quickly swap assets while incurring minimal transaction fees. Otherwise, they must rely on centralized organizations, such as banks, and pay exorbitant prices for every transaction.


The industry of decentralized applications is still in its infancy, having been around for less than a decade. Nonetheless, we can see it expanding into various entertainment and business sectors. 

Developers and programmers use blockchain innovation to bring positive change in the current tech world. It’s exciting to see new projects emerge daily with proper planning, each to provide better solutions to different problems. 


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