The applications we are familiar with, the ones we use daily, are centralised. This means that each application is owned by a certain company, and the entire processing of user data and storing of software for the app takes place on a server or several servers of the company.
Tiktok, Twitter, Uber, or DoorDash – each of the well-known apps has an owner and is controlled by a company. What’s more, banking applications today enable you to complete money transfers, which is much more convenient than visiting a bank.
However, most centralised applications collect personal data about users, such as names and contact details. Often the data is used by third-party resources for promotional mailing, personalised marketing, and other options for creating profit. In contrast to this, decentralisation eliminates the majority of the negative sides of the centralised apps.
Decentralised Applications – What Are DApps?
DApps’ meaning is clear from their name: decentralised applications are not centralised, that is, they are not under the control of a single company. DApps are open-source application software built on a blockchain, a decentralised network. The main difference from conventional applications is that DApps use smart contract technology, and their server code runs on a peer-to-peer blockchain network. Such an environment cannot be managed or interfered with by any authority. Meanwhile, the end user still interacts with a friendly interface. The most famous examples of DApps in 2022 are Uniswap, PancakeSwap, MakerDAO, CryptoKitties, Step App, and Grapherex.
Regular Apps vs DApps
Let’s explore the differences between Apps and DApps.
Unlike conventional applications that are managed by a centralised regulatory authority, Dapps run on a peer-to-peer blockchain. The advantage of blockchain-based applications is that user data cannot be changed or used for advertising or other purposes of the organisation.
Privacy and Security
Dapps usually do not require any information about your identity, so all your personal data remains secure. DApps do not violate your privacy. In such applications, user identification is possible by electronic or cryptocurrency address. For example, one of the fundamental principles for the financial DApp Grapherex is the security of its users – it’s not threatened by hacking.
Compared to traditional apps, DApps are slower in processing transactions or loading. However, today we witness a boom in this sector, and new technologies will provide decent speed in the near future.
The creation of decentralised applications has become more profitable for developers today. Previously, with apps, they needed to think about various factors, such as the cost of a cloud server or a service fee. In contrast, in the case of DApps, developers using the existing blockchain as a basis do not need to worry about the cost of development, deployment, and even updating.
Cost of Use
Users need to pay a small fee when using DApps, while most of the apps are free. After all, you won’t have to pay a lot, but you will get your security and privacy.
Takeaway: Reasons to Build a DApp
Originally, DApps appeared on the Ethereum blockchain. Decentralised applications can be used in several online industries such as finance, DApps crypto projects, various games, and even fitness.
The main reason to create a DApp for your business is to use all the advantages of decentralisation, including privacy and a simple development process. Modern blockchain platforms allow building apps on top of their network. For instance, by gradually introducing application templates, development kits, and a MetaMask, the Ethereum blockchain provides an increasingly user-friendly interface for developers.
Moreover, in a hyped-up industry, it is easier to succeed with your new application. It has more chances to become influential in the blockchain or crypto space thanks to innovative contemporary technologies. Increased transparency, reliability, privacy, and scalability – are the factors that stimulate the unprecedented growth of the DApps market worldwide.