What Is A Dapp: Decentralized Applications Explained 2023


What Is A Dapp: Decentralized Applications Explained 2023

With the rise and increasing adoption of blockchain technology, attention is shifting to a market segment with enormous potential: decentralized appli

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With the rise and increasing adoption of blockchain technology, attention is shifting to a market segment with enormous potential: decentralized applications.

In 2021, daily unique active wallets connected to decentralized applications multiplied by seven, reaching a record high of 2.7 million at the end of the year. Trading volumes were also at an all-time high.

This highlights the type of interest dApps are receiving and why you should notice.

Today, we will examine a dApp and what you need to know about blockchain dApp development.

What Are Decentralized Applications (dApps)?

dApp is an acronym for decentralized applications. A decentralized application (dApp) is simply an application that runs on the blockchain or a peer-to-peer (P2P) network of computers rather than a single computer (or centralized servers).

dApps (also “dapps”) are essentially the same as any other app or game on a mobile device, with the major difference being that dApps are built and run on decentralized networks such as Ethereum.

Due to decentralization, dApps lack a central authority or controlling institution and rely on the community for verification and validation.

dApps are currently being built for various uses, including banking and games, social media, marketplaces, and entertainment.

CryptoKitties is a well-known decentralized application.

Now that we know what a decentralized application is let’s examine its operation in further detail.

Characteristics of dApps

The majority of apps currently available are centralized, meaning a centralized entity administers them. They provide all the necessary data and systems to run operations.

Consider Uber, Instagram, and Twitter. These conventional centralized applications operate on computer networks wholly owned and managed by an organization. Users have no say or control over the app’s functionality.

dApps, on the other hand, conduct their operations through smart contracts, which are easily accessible because they are based on open-source code. This means that decentralized applications operate autonomously without a central authority.

Smart Contracts Explained

A smart contract is an indispensable element of the blockchain. It is a self-executing digital contract in which the terms and conditions of an agreement between two parties are automatically verified and carried out over a computer network. Once deployed on a decentralized network, smart contracts cannot be modified.

dApps can run on a P2P (peer-to-peer) network or a blockchain network, as mentioned previously. BitTorrent is an example of a P2P network in which participants receive, send, and share data without an intermediary.

We have established thus far that decentralized applications:

Are decentralized: Apps operate on open, decentralized public platforms over which no one individual or group has complete control. Decentralized storage is an additional important feature.

Open source: Most users reach a consensus regarding all required changes. This requires that the codebase be accessible for evaluation by all users.

Offer cryptographic security: Decentralized data blocks are validated and proven accurate.

However, there are a few additional factors to consider.

dApps are constructed and executed on a blockchain system, most frequently the Ethereum network. Access to the application requires cryptographic tokens, which are used to validate the app. In Bitcoin, the largest example of a decentralized application, the mining process provides new coins to those who lend their computer’s processing power to process transactions, ensure network security, and keep the network synchronized.

Benefits of decentralized applications

Numerous characteristics make decentralized applications extremely advantageous. They offer the following advantages:


The program’s ability to protect user privacy is one of the greatest advantages of a decentralized app, as users are not required to provide personal information to access the app’s features. DApps use smart contracts to facilitate the transaction between two anonymous parties.


Once a decentralized application is established, it is operated independently by a community of users without external interference or third-party involvement. As the name suggests, decentralized applications do not rely on centralized, hierarchical entities to make decisions or implement changes.

Data Integrity

As a result of the consensus methods utilized by a blockchain, data saved on a blockchain is safe and resistant to modification. Due to a fault tolerance feature that allows the decentralized platform to remain accessible even if just a single node in the network is operational, it is also unlikely that a hacker could target enough nodes to disable a decentralized application.

Zero downtime

Once a smart contract is placed on the blockchain, the network can always serve parties wishing to interact with it. As a result, hackers cannot launch DoS attacks against specific decentralized applications. The Ethereum blockchain is a flexible platform that enables the rapid development of dApps for various industries, providing an infrastructure on which developers can concentrate their efforts on creating innovative digital applications.

Drawbacks of Decentralized Applications

As with any emerging technology, decentralized applications are still in their infancy and subject to uncertainty. The weaknesses and disadvantages of investing in a decentralized environment are as follows:


Compared to centralized networks, the scalability of these kinds of systems is uncertain. This might be problematic if an application demands many computational resources, resulting in significant network congestion.


DApps currently need help to maintain and update because the majority must approve any changes of blockchain network users.


Common digital audiences accustomed to a specific user interface typically find conventional apps simple. These expectations and experiences must be met by dApps, which can be difficult when end users must adapt to new processes, such as using private and public login keys instead of conventional usernames and passwords.


As the data and code published on the blockchain are difficult to modify, it is difficult for developers to implement upgrades, fix bugs, and address security risks.

Examples of dApps

Bitcoin is the most well-known example of a decentralized application. However, there are numerous other Ethereum dApps that provide a more concrete illustration of this type of blockchain application:

Golem: This is a marketplace for computing power that is decentralized. A network of nodes implementing the Golem network protocol. Anyone with idle computing power can donate it to the Golem network in exchange for tokens. It is used for a variety of purposes, including rendering computer-generated animations.

Peepeth: A blockchain-powered alternative to Twitter for social media platforms powered by the Ethereum blockchain. The network intends to “promote mindful engagement, both online and offline,” while providing users with control over their digital legacies by storing their data in the blockchain.

TraceDonate: is a blockchain-powered platform for donations that guarantees complete transparency. Individuals and pleas connected to the forum are eligible for grants. All funds may be traced.

Cryptokitties: CryptoKitties has become one of the most successful dApps on the Ethereum blockchain as a play-to-win game. Breeding and collecting virtual cats in exchange for native tokens that can be exchanged for real-world currency.

How do dApps work?

Not to sound too technical, but there is a simplified explanation of how decentralized applications function:

  • dApps depend on backend code, which is often a smart contract.
  • This digital contract establishes the actions required to run the dApp by the terms and conditions defined within the smart contract.
  • A P2P network activity or transaction is carried out if the contract conditions are met. All relevant information is recorded and preserved in the blockchain.
  • dApps activities are neutralized, and the system returns to its initial state if certain conditions are not met.

DApps are a great deal more difficult than we just attempted to explain. If you are interested in learning more and how to construct your dApp, we recommend you consult resources such as this tutorial and Ethereum’s introduction to dApps.

Bottom Line

Similar to traditional apps, dApps can provide access to a vast number of digital experiences. Social networks and financial organizations currently utilize them, but they may soon be commonplace in gaming, productivity, and marketplace applications.

The benefits of decentralization are surely attracting the attention of organizations and investors who are seeking to capitalize on the next major step in app development by creating applications that are both more secure and more protective of user data.

Consequently, we may anticipate that decentralized applications (dApps) will become an alternative to regular applications as blockchain technology continues to expand and demonstrate its many social benefits.