What is decentralized application?

What is decentralized application?

Blockchain has profoundly impacted the financial sector by making it possible to create peer-to-peer payment systems. Note that this technology provides much greater opportunities than the development of cryptocurrencies. Decentralized applications are an equally important component. Unlike digital money, they provide opportunities for efficiently solving a wide variety of tasks: from the trivial ordering of food with delivery to information processing. Below with Unicsoft – dapp development company you will find out what properties decentralized applications (dApps) have, and what are their advantages.

The blockchain stores data on all transactions with tokens carried out through a peer-to-peer payment system. Digital wallets, that is, customers, make transactions with records. They form keys, control balance, and perform a number of other functions. Digital coins are referred to as dApps. They run on the blockchain, using a distributed ledger as a tool for transferring and storing data.

By including in the system environment for executing code, we will have a decentralized computer. It will become as reliable as electronic money.

Why are smart contracts needed?

By means of smart contracts, for example, you can create an additional token for service purposes. In Ethereum alone, over 250,000 token contracts were generated using ERC-20 technology. Note that dApps are much bigger than the new coin. It operates on the blockchain and smart contracts, which are essentially software code. Through it, the conditions for performing any operations are set. dApp is a complete product with wide functionality and user-friendly interface.

There are already many such applications. These are online games, investment projects, P2P marketplaces, etc. There is even a B2B sector. ChainLink is one example of such developments. This product makes it possible to process and analyze significant amounts of information from different sources through smart contracts.

Platforms supporting smart contracts

Development of dApps is a complex process that requires experienced specialists, as well as a blockchain platform that supports smart contracts. This is the minimum required to create decentralized applications. Here are examples of blockchain platforms suitable for solving the problem under consideration:

  1. NEO. A platform that supports smart contracts. Initially, it was developed as a tool for digitalizing real assets by means of a protocol for their identification. The platform works with five programming languages, which makes it very convenient for creating dApps.
  2. TRON. Originally developed for the entertainment sector as a decentralized social network. Allows you to quickly and efficiently create dApps, issue new tokens.
  3. EOS. The platform is positioned as a decentralized operating system. It uses an Ether-compatible virtual machine. At the same time, the platform provides a higher level of security an performance. A key plus of EOS is zero transaction fees.
  4. Ethereum. This is the first development to include smart contracts functionality. Solididty was used to write it. Despite the fact that analogues of this platform offer more efficient environments, it remains the leader in the number of coins and dApps created. This platform has great functionality that allows you to implement projects of great complexity and scale.

DApps examples

The first project that managed to attract a large audience of users was DAO. Its goal was to form a decentralized community. Participants in the project were given the opportunity to make decisions about investments in various crypto projects. DAO managed to attract 18 thousand users.

DApps examples

Trending dApps of the past year

The dApps market is booming. New developments emerge. It is rather difficult to identify one leader among them. The following projects received the greatest recognition:

  1. IPSE. A peer-to-peer search engine that provides users with a secure search on a file-sharing network. The application is built on the basis of the EOS blockchain and IPFS protocol.
  2. OpenSea. Marketplace for making trade transactions with rare items from blockchain games with https://unicsoft.com/. Powered by the Wyvern Protocol.
  3. Karma. A social network whose idea is to share positive and original content. The application is based on EOS.

These and other dApps are good at unlocking the potential of the blockchain. We advise you to study them in more detail. Since it is with dApps that the emergence of innovative digital technologies and Web 3.0 is associated. It is clear that in the future this technology will play a key role in many sectors of the economy, including B2B.



IITSWEB is the Chief Business Development Officer at IITSWEB, a Magento design and development company headquartered in Redwood City, California. He is a Member of the Magento Association and an Adobe Sales Accredited Magento Commerce professional. Jan is responsible for developing and leading the sales and digital marketing strategies of the company. He is passionate about ecommerce and Magento in particular — throughout the years his articles have been featured on Retail Dive, Hacker Noon, Chief Marketer, Mobile Marketer, TMCnet, and many others.

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