Get to know Dapps, Peer to Peer Applications in Crypto
You must often come across the word “decentralized” when surfing the blockchain world. “Decentralized exchange” (DEX), “decentralized finance” (Defi), and “decentralized apps” (dApps) are just one of the many glossaries in the cryptocurrencies and blockchain metaverse.
If cryptocurrencies are decentralized money, then dApps are decentralized applications (dApps). Just like application software, dApps is a platform that can connect users between users. The difference is that dApps work peer to peer (without intermediaries), so users have full authority to manage them.
Another thing that is unique selling point of decentralized apps (dApps) is the system that is not easily down and is always online. While blockchain works by copying all data from a collection of computers called “nodes”, dApps serve as a liaison between users on the computer network. This collection of computers is owned by each user, not the owner of the DApps.
Why Decentralized Apps (DApps)?
24 hours online
DApps work actively even if the computer or network is down. This makes dApps will not experience down. Users also don’t have to worry about the system being offline or experiencing interruptions at certain times. The decentralized system makes dApps accessible at any time because they do not use a centralized server.
DApps users feel more secure using dApps because of their decentralized nature. All transaction data in the system cannot be deleted or censored by non-users, even by the application developers themselves. No authority agency can censor dApps, all transactions are recorded in the system and supported by data.
The open-source system of dApps provides stability and transparency to dApps users. Everyone can view transactions by accessing the unique transaction code.
Crypto DApps are made with a blockchain-based system that makes the application control controlled by the user, not a corporation. DApps also use smart contracts, making it easier to integrate cryptocurrencies into the basic functions of decentralized apps. What is a smart contract? In simple terms, a smart contract is a collection of code that functions as a contract and works automatically in executing orders when a condition is met.
Disadvantages of Decentralized Apps (DApps)
Slow app updates
The absence of centralized authority makes crypto dApps slower to carry out various updates and changes in the system. Updates in dApps can take weeks to months as updates require the consensus of many users.
DApps require node, user, and governance code (the DAO community of a set of users involved in dApps) to run their operations. For example, to transact in a dApps wallet, users must download a browser that supports the dApps application, and send the required crypto tokens or coins to the dApps wallet. For people who are used to the speed of technological transformation, this is certainly an easy thing to do. However, some new users may have difficulty adapting to the dApps system.
Code sample limitations
Sample code for developers who want to innovate is still limited, so
they have to find their own way to build dApps.
Examples of Decentralized Apps
After reading an explanation of the pros and cons of using dApps, let’s talk about examples of dApps on the blockchain!
Solana is the best dApps with the fastest blockchain network. Solana is able to process transactions up to 50,000 TPS (transactions per second). Solana is widely used as an ideal platform for projects such as Defi and DEX features.
Ethereum launches the world’s first dApps that are pioneers in smart contracts and blockchain. Many crypto projects use Ethereum’s blockchain network and smart contracts. The high demand in the use of the Ethereum network of various crypto projects has an impact on the stability of Ethereum. Expensive processing fees, scalability problems, and slow transactions did not make this European blockchain developer off guard. Ethereum will soon release an updated version, namely Ethereum 2.0.
Binance Smart Chain (BSC) dApps
BSC is a dApp that uses smart contracts to make it easier for users to transfer assets between blockchain networks (cross-chain). BSC can process transactions up to 160 TPS (transactions per second) and is compatible with EVM (Ethereum Virtual Machine). BSC is also one of the most widely used blockchain networks after Ethereum.
This blockchain may not be as popular as ETH and BSC in terms of utilization. However, Polygon (MATIC) excels in terms of effectiveness and efficiency. Polygon, which is part of the Ethereum Foundation, can work faster and at a lower cost on the Ethereum network by using Layer 2.
Polkadot is the next generation of blockchain that makes it easy for all forms of data to be transferred to various types of blockchains. Polkadot excels with a multi-chain blockchain system with advantages in scalability, dApps that are always up-to-date (upgradeability), transparent community (transparent governance), and cross-chain compatible.
Do you know of any other examples of blockchains that use dApps? Feel free to let us know! Share your opinion in the comments column and follow our medium to find out about the world of blockchain and cryptocurrencies. Don’t forget to visit the Litedex website, Instagram, Twitter, YouTube and TikTok to keep getting updated information from us.