Get rid of fees, third parties, and so-called intermediaries. The goal of Dapps, or decentralized applications, is to achieve that. We shall study how they function and how to use them in practice in this post.
What is Dapp?
An example of a decentralized application is a Dapp. They do comparable tasks and are similar to traditional applications, but the fundamental distinction is that Dapps run on a peer-to-peer network like Blockchain.
That implies that these apps are not under the control of a single entity or group.
Dapp can be distinguished by 4 features in particular, including:
- Being Open Source: The Dapp’s base code is constantly accessible for community review and assessment. Additionally, the majority of users must agree on all modifications before they may be implemented.
- Decentralization: To prevent the major risks of centralization, all records of application activity must be maintained on a public, decentralized blockchain.
- Blockchain transaction validators are rewarded with tokens, which encourages them to carry out their task.
- Protocol: To demonstrate proof of value, a Dapp must make a cryptographic algorithm public. For instance, Ethereum uses Proof of Stake while Bitcoin employs Proof of Work (PoW) (PoS)
What systems are Dapps developing for?
#1. Ethereum Network
If Bitcoin is driving the evolution of cryptocurrencies, Ethereum has demonstrated the true potential of Blockchain technology for applications. The largest platform with the most Dapps releasing on Blockchain is Ethereum.
The Ethereum platform enables the launch of Dapps by developers from all around the world. According to the project’s whitepaper, Ethereum’s objective is to design a different protocol for developing decentralized applications with an emphasis on development speed, security, and scalability.
Dapps that are successfully deployed on the Ethereum network, such as Golem, Augur, BAT, etc., have amassed market capitalizations in the millions of dollars.
#2. EOS Network and TRON
Following Ethereum, EOS and Tron are the 2 best-performing platforms with the most developers.
One of the most well-known projects today is EOS, which was started by STEEM Dan Larimer. EOS’s primary goal is to give programmers a highly scalable platform that succeeds where Ethereum has so far fallen short.
Like EOS, Tron has benefited from the platform’s scalability to draw in a sizable user and development base. Even said, Justin Sun, the well-known founder of Tron, promotes the cryptocurrency and is responsible for its aggressive promotion.
#3. The best dapp across all platforms is which one?
- Dapps should be ranked according to their 24-hour user usage.
With 70,610 users over the past day, Tronchain is presently the Dapp with the most users. TronHero, a Dapp from the Tron platform, comes immediately behind it, and Uniswap on Ethereum is rated third.
- Sort Dapps based on their 24-hour trading volume.
Based on this ranking, decentralized exchange Uniswap is in the lead with $358.63 million. Curve, Compound, dYdX, and MakerDAO are among the top 5 Dapps with the highest 24-hour transaction volume, and they all use the Ethereum platform.
Classification and practical use of Dapps
The following 7 categories are used to categorize Dapp applications:
- Exchange: Enables the direct trading, exchange, and storing of currency. Including common exchanges like IDEX, LocalEthereum, MakerDAO, AirSwap, Melonport, ForkDelta, Bancor, and 0x on Ethereum. Pancakeswap, Burgerswap, Swapx.bscex.org, Barkeryswap, Thug.finance, etc. are all available on Binance Smart Chain.
- Wallets: There are wallets for Metamask,…
- Applications used for betting: Like BIG Game, PLAY GOC, TronVegas, Crazy Dog Live, Pixel Farm, EOSbet, Hold’em PokerKing, Tronbet.
- Games: Includes CryptoKitties, Etheroll, Etheremon, Gods Unchained, ETH.TOWN, FunFair, Fomo3D
- Finance: Bounties Network, Gitcoin, Balanc3, Ethlance.
- Social networks: Minds, Numa, Peepeth, Akasha.
What are Dapps used for?
A Dapp’s functionality is essentially unbounded. They might be applications with a focus on finance, blockchain betting games, apps for live video streaming, etc.
The fact that Dapps are intimately related to a cryptocurrency project is another important point to make. Since the majority of Dapp actions necessitate some sort of minor transaction, Dapps are also strongly tied to cryptocurrency-related ventures. because a modest transaction of some kind must take place for Dapp activity to occur.
For instance, there will be a tiny price if you utilize Dapps created for creators to post your material online. These costs are typically in the cent or two range or even less. However, such a modest arrangement would give viewers access to video, text, and other things.
The content that is published by content creators can also be made money from. This will encourage their artistic endeavors or enable them to make money. Whenever there are enough individuals who are interested in what they do.
Some Dapps use the money they receive in exchange for a charge to either continue funding the project’s development or to provide raw materials for the network’s core and system consensus mechanism. Dapps also give users the option to exchange value, which is advantageous to the project and the community at large.
The future of Dapp
Dapp is still in its infancy as a technology. Thousands of different Dapps offer services right now, including gaming, exchanges, finance, etc.
The total transaction volume on Dapps surpassed $12 billion as of Q2 2020, an increase of $4.5 billion from the previous quarter. Even if these are impressive figures, Dapp still has a long way to go before it can continue to expand.
Developers and the platforms they utilize still have a number of obstacles to overcome before Dapps really take off, including: Scalability, Security, and User Experience. In order to further decentralized applications, we think that the existing issues will eventually be solved.