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Decentralized Apps – What You Must Know In 2020

You would have heard of decentralized databases, but have you heard of decentralized applications?

Yes! I am referring to applications with decentralized properties. Surely, you would not have heard of such applications, but you have heard of blockchain.

You may have come to this blog to know “how to develop a blockchain application”. However, there is much more to know before moving on to the development phase. So, I will explain all aspects of blockchain application development.

Decentralized applications and blockchain applications are similar in that blockchain has the main role in decentralized application development.

In fact, the use of blockchain is growing rapidly among various industrial sectors. Additionally, blockchain has been proven to provide high-grade data security. Therefore, its use in any way possible is gaining popularity. The following representation shows the growth of its use in different sectors.

If we talk about mobile applications, some cryptocurrency wallets are already based on this technology. Although complete decentralization has not been achieved, in this article, we will catch up on ideas about blockchain / dApps. So, stay tuned with me here.

What are dApps or Blockchain Apps?

D stands for “Decentralized”, hence the term coined as DApps. This new category of applications is still in its infancy. Explaining this category of applications in one line is difficult since there is no specific definition that can explain all the characteristics of decentralized applications. These are some of the characteristics of DApps that specify the nature of decentralized applications:

  • Open source: it is essential with Dapps that your source code is open source. It is the main feature that distinguishes dApps from others. Furthermore, the focus is also on autonomy and unanimous consensus. Modifications must be made with the consent of the majority of users and each user must have the right to verify the code.
  • Decentralized Data Storage: As its name means the property of being decentralized, it is clear that everything must strictly follow decentralization for data storage. Therefore, it is essential that everything is stored in a technology that cryptographically secures data such as blockchain. Since the centralized authority has been perceived as having the right to moderate the data, this property emphasizes autonomous nature.
  • Incentive – Another feature is that your app must-have digital assets like a cryptocurrency or Fiat to add value and feed.
  • Protocol / Algorithm: The consensus mechanism is essential in decentralized applications that integrate real value in the cryptographic system. Basically, the consensus protocol is an aspect that all users agree on.

So it is clear that decentralized apps are completely different from other custom apps. While these applications require a PtoP network to run, there is no central authority that governs them. Therefore, there is very little chance of data being tampered with, including cryptographically protected data packets that provide high-grade security.

According to the App Development Agency, DApps fall into three main categories:

> Type 1: Applications that have their own blockchain.

-> Type 2: Application platforms that use type 1 blockchain and are protocols by nature with necessary tokens.

-> Type 3: Applications that use the type 2 protocol.

So it’s clear that dApps have a very rigid architecture that makes them exceptions. However, questions arise: how can they help industries? In what scenarios can these applications be useful?

Finding answers to these questions is just as important as finding how to make a blockchain application.

Therefore, let us collect information and understand the use of these applications in the market.

Since blockchain application development is gaining significant traction in the market, the technology is expected to solve various problems related to data storage and security. However, decentralized applications can be revolutionary. These are the ways they can offer solutions to businesses and consumers in various circumstances.

How will dApps reshape the future?

  1. To manage business processes

While it is essential for all companies to accelerate processes and generate more value, the use of decentralized applications can streamline processes and solve critical problems. For example, companies in the supply chain can track products end-to-end and obtain essential information related to the product in real-time. Getting information in real-time on your mobile phones or tabs can reduce the need to keep data in a centralized system.

The healthcare industry can use these applications to acquire critical information from patients. Furthermore, patients can also access the records without obtaining permission from any authority. Records transparency can be achieved and loopholes in the system can be filled.

Improved money transfer

Today, online money transfers have become the backbone of various economies as consumers around the world use wallets and other platforms to make purchases and payments.

In such scenarios, decentralized applications will emerge as a boon to consumers. These apps will not only smooth out the money transfer but also make it cheaper if you keep using cryptocurrencies.

Everyone knows that there is a very low transaction fee or sometimes no fee on crypto money transfers. While the dApps will be based on blockchain and crypto-token, the management and transfer of money will be cheaper and more fluid. In addition, the security due to the consensus protocol will be more consolidated and impenetrable.

  1. Boost the culture of Gig Economy or DAO

Did you hear about the concert economy or DAO? The gig economy is basically a reference to a market where workers offer their services and receive payment, although they are not included in a list of employees of organizations, however, they provide services to the organization. DApps can drive this practice by making the contracts between the service provider and the recipient more transparent.

While the concept of DAO (Decentralized Autonomous Organizations) would also emerge stronger and could even replace current practices. DAO is a completely new way of working in an organization or corporation. Basically, a corporation in this system runs according to the rules of a defined computer program, that is, blockchain. Transparency is the basic feature, while everything is operated by blockchain, including the business segment, operation, currency exchange, and more.

In short, decentralized applications will introduce a new platform where corporations, employees, and consumers will interact with each other in a more transparent and efficient way.

How to create a Blockchain application?

The roadmap for creating a decentralized application is not as simple as centralized applications. You must plan a strategic and sequential development with a set time frame. Here are some steps to help you understand how to develop blockchain or decentralized applications.

  1. Post a WhitePaper that specifies the purpose, features, scope, and more. This will allow you to inform investors about your plan and help you gain significant traction.
  2. Launch an ICO (Initial Coin Offering): Crypto is critical to powering your application and adding value. So launching an ICO would implement the foundation for the application.
  3. Begin development: after winning investors and securing a fuel cryptocurrency base.
  4. Time to start core blockchain application development. Make sure it is intuitive and easy to use.
  5. Launch the product and collect user feedback for improvements.

Surely now you would have got the answer to all your questions. Also, I would suggest hiring developers from an innovative mobile app development agency well versed in blockchain and ICO implementation. To find out more about decentralized apps, stay hooked with me.

Rakesh Bisht

Author Bio: Rakesh Bisht is an Innovative Marketing Professional and Technology Whiz who closely follows the latest mobile application development technologies. He explores new technologies, and shares his knowledge through writing.

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