There’s a budding array of DApps built on blockchain across a range of industries, from finance to collecting art and gaming.
But what actually are DApps? And what are they used for?
What is a DApp?
A Decentralised Application or DApp is like a traditional app but operates on a blockchain network. They can be created for different real-world use cases.
Open-source: They are usually open-source, which means that their code is publicly available and any user can verify the code.
Smart contracts: They also rely on smart contracts to execute transactions. (Smart contracts are self-executing and key to ensuring transactions between parties are automated and seamless).
Decentralised: As they run on blockchain networks, DApps are decentralized and controlled by users or nodes instead of central authorities.
Cryptographically secured: They are also secured by cryptographic technology. This ensures all data is stored in a public blockchain to ensure there is no single failure point.
DApps are much less vulnerable to technical issues and attacks when compared to traditional, centralised applications. If a single, centralised server is compromised, the whole network could be taken down. (However, it’s important to note that DApps are not immune to hacks.)
DApps are also resistant to censorship and it’s extremely hard for governments or other powerful parties to control the network or block users from using it.
Drawbacks of DApps
A decentralised application’s code is published to the blockchain, making it harder to maintain and update.
Also, DApps may be less user-friendly than their traditional counterparts.
There is a wide range of DApps with a variety of use cases like gaming, crypto wallets, DeFi apps, social media and more. Right now, the most popular Dapps are decentralised crypto exchanges or DEXs.
DApps typically support their own operation through the use of digital tokens based on smart contracts. Tokens may be native to the DApp’s blockchain or unique to the DApp itself.
Popular examples of DApps
Uniswap is an automated token exchange.
30 day trading volume (total incoming value to the DApp): $58,929,071,840.96 or 37,153,466.17 ETH (as of Jan 21, 2021).
OpenSea is the first peer-to-peer marketplace for NFTs including collectibles, gaming items, and digital art.
30 day trading volume: $3,010,634,611.56 or 1,039,486.1 ETH (as of Jan 21, 2021).
Axie Infinity is a play-to-earn blockchain game where players use their cute, pokemon-inspired “Axies” to play various games.
30 day trading volume: $594,509,305.98 (as of Jan 21, 2021).
Read more about Axie Infinity and discover Cryptonary’s take on the project here.
Disclaimer: NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.
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