Decentralized Applications (dApps): Examples, Advantages,

Blockchain technology is being used to practice decentralization fully. A decentralized or distributed application utilizes the surplus processing power of thousands of computers worldwide rather than a single server. It can be controlled by business automation software that ensures that a function can only be performed if a certain condition is met.

It should be noted, however, that decentralized app development can operate on a specific kind of peer-to-peer (P2P) network that is not a blockchain and is not required to do so. Tor, BitTorrent, Popcorn Time, and BitMessage are decentralized applications that function on P2P networks.

Let’s demystify the idea for you and jointly comprehend what decentralized applications mean.

What are Decentralized applications?

Decentralized applications are programs that communicate with the blockchain, which records the current state of every user on the network. The user interface of decentralized applications is the same as that of any existing website or mobile application. A smart contract represents the central logic of a decentralized application.

Smart contracts are building blocks for blockchains that help the blockchain manage the state of every network actor by processing data from external sensors or events. Typically, they are employed to automate the execution of a contract so that all parties can be certain of the result immediately, without the need for any middlemen or time wastage. They can also automate a workflow to move on to the following step when certain criteria are satisfied.

The front end of a decentralized application is what you see, and the back end is all the business logic. One or more smart contracts communicate with the underlying blockchain to represent this business logic.

Decentralized storage networks like Swarm or IPFS could host the front end and files like images, videos, and audio. Traditional Web applications use HTML, CSS, javascript, or a related language to render a webpage. This page contacts a central database that houses all of the data.

A traditional webpage will use an API to process your data and other pertinent information stored on their servers to display on the page. This is the primary distinction between centralized and decentralized apps. User IDs and passwords are used for identification and authentication with low levels of security because personalized data is stored on the service provider’s server.

Decentralized vs. Centralized applications:

A centralized app is owned by just one business. The application software for a centralized app is kept on one or more corporate-owned servers. When using the app, you will send and receive data from the company’s server after downloading a copy.

A decentralized app runs on a blockchain or peer-to-peer network. It enables users to transact with one another. To download and use the source code of a dApp, the user must pay the developer which hires from top blockchain development companies a cryptocurrency fee. Users can conduct transactions using a smart contract, a source code.

List of Top 7 Decentralized Applications

With Bitcoin, the first decentralized application, anyone could download open-source code, connect to a blockchain network, and use a mining algorithm to verify transactions in exchange for virtual money.

Depending on the blockchain platform, small and large businesses use dApps to track and trace goods as they travel the globe and enable cross-border financial transactions without needing an intermediary like a central bank or clearinghouse.

1. Brave
2. Golem
3. TRACEDonate
4. Circulor
5. Aragon
6. KYC-Chain
7. Prism

1. Brave

With nearly 9 million active users, the browser recently gave Chrome browsers a serious run for their money. Brave is attempting to turn the online advertising paradigm on its head by putting the consumer in control. The app establishes a new standard for measuring the value of advertising, favoring “consumer attention” over illegitimate webpage views or clicks.

Because one of its co-founders played a significant role in the development of Mozilla’s Firefox, and in part because of its unique—some might even say parasitical—business model, Brave has received more attention than most alternative browsers.

The browser was previewed in January 2016 by Brave Software, one of the more recent competitors in the browser competition. After leaving Mozilla, Brendan Eich, the creator of JavaScript and a co-founder of that organization, co-founded the business.

Based on Chromium, Brave is an open-source undertaking supported by Google and others. Brave also uses backend components from Chrome, such as the V8 JavaScript engine and the Blink rendering engine.

2. Golem

A decentralized application (DApp) called Golem seeks to establish a global market for surplus computing power. To create a supercomputer that anyone can use anywhere in the world, the project aims to combine the power of PCs and data centers. The initiative distributes the computational load among “Providers” who are ready to rent their computers for computing time instead of relying on a central server farm.

These distributors are willing to share their resources in return for GNT tokens. Because it enables the decentralization of the rendering process, which is quicker and less expensive than centralized solutions, the project has a lot of potential.

3. TRACEDonate

Regarding charitable giving, the “donation sector” struggles with transparency and traceability. With its identity management platform created to enable transparent and traceable cross-border remittances and to give, TRACEDonate fills this need.

The dApp created by AID: Tech links charitable organizations, donors, and recipients. Piekarska-Geater claims that the organization aims to provide donors with peace of mind by guaranteeing that their donations are used by those in need for the intended purposes, such as buying groceries or utilities rather than alcohol.

Blockchain is used to verify the legitimacy of the charitable organization and the recipient of a donation. The donor can monitor how their money is used because the funds are stored in an online digital wallet. Additionally, donors can designate how the funds should be used, such as for food, emergency supplies, or medical care.

4. Circulor

One of the most well-liked decentralized supply chain traceability tools for the electronics and electric vehicle sectors is Circulor. It offers traceability to show that the raw materials used in the latter’s production were sourced ethically and sustainably.

A track-and-trace platform called Circulor lets users, among other things, secure deliveries, control payments, and confirm the provenance of raw materials. Circulor is made to deal with the complexities of the real world.

Decentralized applications (dApps) have emerged with distinct features that enable stakeholders to invest in their creation, potentially making them self-sustaining resources.

Based on their popularity, it is anticipated that more dApps will eventually be available than traditional apps, which are currently available for various uses like payments, storage, cloud computing, and so forth.

Many presently used methods will be rendered obsolete as Blockchain becomes inevitable. Although it may seem impossible right now, soon, banking services will undoubtedly adopt Blockchain and run on decentralized, self-sufficient, and trustless networks. Large corporations are working in this direction to guarantee their position in the Blockchain ecosystem.

5. Aragon

A significant addition to the DApps series is Aragon. Decentralized organizations can be founded and managed using the Ethereum Blockchain platform. The Aragon Foundation oversees the open-source Aragon project.

By enabling people to manage entire businesses and organizations using the Ethereum Blockchain, the project aims to do away with the need for human commerce. The platform allows users to establish and oversee decentralized autonomous organizations (DAOs).

Aragon also contains ANT, the platform’s token, which provides voting privileges for choices made regarding upcoming product development. The Aragon DAO model applies to any company, nonprofit, or foundation. It is anticipated that this will improve the governance of these organizations in terms of transparency and efficiency.

By substituting them with smart contracts based on the Ethereum Blockchain, Aragon also aids in the elimination of pointless third parties. The program promises to function as an incredibly specific digital jurisdiction for everyone by eliminating geographical restrictions and red tape.

6. KYC-Chain

Businesses use his app to streamline the onboarding process and verify customer identities in a way that complies with KYC regulations. It can instantly check individuals and corporate and institutional business clients for criminal or prohibited activities using partner sanctions and watchlists database covering more than 240 countries.

Thanks to a self-sovereign identity dApp from partner company SelfKey, KYC-Chain enables users to store their certified identity details on-chain and control public access to their credentials by providing public keys when a permit is required.

Through dApp, users can pay for specific services like accredited investor screening, crypto fund screening, ID verification, and document authentication. Users can use the service to comply with anti-money laundering laws by comparing client crypto wallet spending to known-risk indicators.

Prism

Prism is built on the Ethereum Blockchain. It is an unreliable, decentralized asset portfolio market. It develops custom market portfolio management tools using EDCCs or executable distributed code contracts. Anyone can invest in another cryptocurrency through Prism and choose the holding percentage.

Prism eliminates the need for intermediaries and the time-consuming process of managing numerous wallets and private keys. The project is based on Ethereum smart contracts, so there is no need to remember multiple exchange passwords and keys. Additionally, it has an interactive user interface that tracks everything and displays a person’s investment portfolio in real-time.

What are the Top Advantages of decentralized applications?

The following are some benefits of decentralized apps:

• The core of the program is the capacity of dApps to safeguard user privacy. Decentralized apps do not require users to provide personal information to use their features.
• DApps use smart contracts to carry out transactions between two anonymous parties, decentralized authority-free.
• dApps can be created as substitute social media platforms, in the opinion of free speech advocates. A decentralized social media platform would resist censorship because no single participant on the blockchain can remove or prevent messages from being posted.
• Since Ethereum is a flexible platform, developers can concentrate on developing new and creative uses for digital applications. This could make it possible for dApps to be quickly implemented in several sectors, including banking and finance, gaming, social media, and online retail.