Introducing Dapps: a Breakthrough in the Crypto Space
Let us introduce you to Dapps and give you an overview of what these are and how they work.
The term “Dapp” stands for a decentralized app. Similar to regular apps, they have the same functions apart from the main difference — they run on a blockchain, a peer-to-peer network. It implies that no entity or person has control over the network. There are key elements to every Dapp, namely:
- Dapps are open-source, and they operate independently without third-party control
- Dapps’ records and data are meant to be public
- Dapps utilize cryptographic tokens that facilitate the network’s security
As the industry has matured, these features are either used all together, some of them, a combination of, or none by these apps.
The advantages of Dapps
- Dapps are censorship-resistant. Neither governments nor people of power can control the network.
- There is no downtime. In case individual computers or parts of the network go down, Dapps continue to work as they rely on a peer-to-peer system.
- Dapps are blockchain-based. Because these apps use smart contracts, it is relatively easy to integrate cryptocurrencies into Dapp’s functionality.
- Dapps are open-source. This instance facilitates the development of the Dapp ecosystem, as developers are enabled to create dapps with more interesting or useful functions.
The disadvantages of Dapps
- Dapps are prone to hacking. Since the larger part of Dapps runs on open-source smart contracts, hackers have an opportunity to probe the networks for vulnerabilities.
- Some Dapps have issues with usability. Many Dapps have weak user interfaces that repel users. This aspect is improving with time, as far as we can tell.
- Dapps struggle with low user numbers. This instance makes Dapps less interactive. Just like numerous apps in Web 2.0, the more people use a Dapp, the more effective the network is at providing its services. It also affects a Dapp’s security, as it depends on the number of users who use a Dapp.
The potential of Dapps
Dapps are still in their infancy. Nevertheless, thousands of Dapps already exist and offer a wide array of services. Last year, Dapp transaction volume hit 12 billion dollars. Nevertheless, there is still a long way ahead, but more and more companies contact 42 Studio to receive blockchain marketing services. Prior to launching a Dapp, developers face numerous challenges, namely, security, scalability, and UX.