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Decentralized Apps (DApps): A Comprehensive Guide

Decentralized apps, or Dapps, function very similarly to normal apps, but instead of being deployed to the App Store or PlayStore, they run on either a blockchain network or a peer-to-peer (P2P) network like a blockchain. They come in various shapes and sizes. Often, these DApps will create a native utility token to help create interactivity.

So, what sets DApps apart from traditional apps? You’ll soon discover there is no “universal” definition of what exactly a DApp is. In fact, most people you ask will just begin to describe it or name actual DApps.

In 2014, a whitepaper called “The General Theory of Decentralized Application, Dapps. The Emerging Wave of Decentralized Applications” was published, outlining four criteria that help to define what a DApp is.

Decentralized Apps (DApps): A Comprehensive Guide

Source: Leeway Hertz

#1 - Blockchain-Based

Since the DApps are deployed on a blockchain, they are built off smart contracts, which allow for seamless integration of cryptocurrencies into the DApps basic functionalities.

Think of a standard web app, like Facebook, Twitter, Uber, Venmo--all of which run on a computer system, owned and operated by a central organization or authority. In other words, the backend of that app is controlled by a single organization.

In contrast, DApps can run on both a P2P network and a blockchain network. In this ecosystem, a developer can essentially create a Facebook-like DApp and put it on a blockchain, where any user can post or tweet messages. The difference, however, is that once a message is posted, nobody, including the app creators or back-end, can delete those messages.

Remember, an immutable ledger that forever preserves that original message or tweet.

#2 - Open-Source

By having an open-source network, this encourages and enables developers to build better, useful, quality DApps for the ecosystem. There is no one organization, entity, or individual that owns the network. For this reason, any changes to the network are voted on through a consensus mechanism.

#3 - They Don’t Crash

One of the more useful characteristics behind DApps is that they don’t crash, as you would expect to see at some point with traditional mobile apps.

By relying on a P2P network, DApps will continue to run and function, even if part of or the entire blockchain network goes down. Talk about useful!

#4 - Decentralized

Remember, in a decentralized system, there is no censorship, making it very difficult for governments or other individuals to control the network at any one time.