A dapp, or decentralized application, is an app that exists on multiple computers within a peer-to-peer network without the need for a central server. They're unlike traditional apps because they are not run by one entity but instead rely on their own internal and immutable code to enforce their rules. Unlike most crypto exchanges, decentralized apps can't be hacked or altered by individuals. They offer more privacy than centralized systems as well as reduced costs due to the lack of any middleman. The most successful dapps currently are peer-to-peer cryptocurrency exchanges like Uniswap and collectibles.
Dapps started to become a popular concept in 2017 following the rise of smart contracts which allow for the creation of dapps that aren't controlled by any third party. These contracts are computer programs that run on their own accord, use blockchain to store data, and the consensus of the network is used instead of a centralized authority to validate information. The Ethereum platform has been instrumental in this development because it acts as a foundation along with being required for all ERC-20 tokens and ICOs since 2016. Ether is used when developing smart contracts with Ethereum Solidity which is programming language for working with smart contracts within Ethereum Virtual Machine.
The types of dapps currently out in production are ERC-20 smart contracts for finance, price prediction, gambling platforms, and marketplaces. There are apps that use the Ethereum network for the purpose of creating decentralized games while others are developing decentralized exchanges like 0x and Bitshares. There are other crypto and gaming dapps that aren't quite as popular yet but still in development such as DemonTime which is hoping to create an open marketplace for trading crypto"ass"ets.
One of the most famous apps built on the Ethereum network is Etherdelta which allows users to exchange Ethereum or Ether (ETH) for other ERC-20 tokens. It's possible to trade anything from ETH-based games to ETH-based collectibles (WINGS).
Techy and Tech Investment Stuff in re dapps
A functional dapp must be able to perform four key functions: store/update information, retrieve/send information, execute code, and interact with other dapps.
In order for a dapp to succeed it needs a strong team of developers who have experience in web development (HTML/CSS), network security and cryptography (Bitcoin/Ethereum), software development (Java/Python), project management expertise, graphic design skills such as UX/UI design as well as marketing skills.
Some of the most important factors to consider before investing in a dapp are the reputation of the team members, how long the dapp has been in development, what is the purpose and main features of the app, what are your goals for using this dapp, can you reasonably expect to achieve those goals with this dapp?
A lot of startups will launch an app without enough time or resources to test its digital foundation. When this happens there is a high likelihood that bugs, flaws, and errors will be discovered all at once at launch which results in poor user experience and negative reviews.
Conclusion
In conclusion, it was very difficult to determine the true value of decentralized apps within the crypto market as they are still in development. Since dapps are a quasi-new concept, so it is still possible for them to create monopolies on their networks.
Dapp is certainly one of the most exciting applications of blockchain technology because they offer users more privacy and security than traditional apps and can integrate with existing services such as banking and social networks seamlessly. A positive side-effect of decentralized apps is that they can greatly benefit from the progress that has been made since Ethereum's inception like better privacy and security features, faster transaction speeds, and API integration.
Disclaimer:
Based on experts and articles one may research independently, cryptocurrencies are highly speculative and risky investments. It is important to do your research before choosing any coins or tokens you want to invest in. This post is by no means meant to discourage anyone from investing in cryptocurrencies and blockchain technology. I am merely trying to convey that there are a lot of unknowns and high risks involved with this new technology. It may take years for cryptocurrencies to catch on, but there is also the possibility that they will never break into mainstream use at all. I am not an expert in economics, trading, finances, or crypto trading and am not providing any advice. These are only my opinions based on my thoughts and research within the technology space.
