Easy… They’re like apps, but better.
What are dapps, or decentralized applications? In simple terms, a dapp is but an ordinary application that runs, not from a single server like traditional apps. But from thousands of computers, called nodes, that underpin the blockchain. To further explain, a dapp operates from a peer-to-peer network and not from a single server. Meaning no one entity has control over it.
In the same way that mobile devices needed apps to make them a necessary item for everyday life. The blockchain needs the same fuel to get it into the hands of everyone. Dapps provide that fuel in the shape of applications traversing separate categories such as games, finance, gambling, and exchanges.
Apps, with benefits
Ethereum is the current market leader and home to 2138 of 4294 or just under 50% of the dapps tracked by DappRadar. The reason for this dominance is mostly down to a strong first-mover advantage and lack of viable alternatives – until now.
In 2020 and early 2021 more and more direct and layer-2 competition to Ethereum has arrived to meet customer demand for speed and efficiency. Blockchains such as Binance Smart Chain, Polkadot, and Matic. As a result, decentralized applications are looking more vibrant and exciting than ever as developers vie for users’ attention.
- Decentralized applications allow users to cut out the middle man and transact with vendors directly.
- With no single point of failure, dapps are censorship-resistant.
- Relying on a peer-to-peer system ensures dapps work even if parts of the network go down.
- As they consist of smart contracts, they can easily integrate cryptocurrencies into the functionalities.
- Dapps are open-source. Encouraging broad development of the decentralized application ecosystem and empowering developers to produce more useful or attractive functions.
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