Dapps have come to eliminate brokers and third parties.
For example: an application can be used to connect between users without the need for an intermediary who organizes the process and takes fees for it, rather it takes place directly between users.
This is the goal that Dapps seek to deliver.
In this article, we will review what decentralized applications are, how they work, and some of the challenges facing these new types of applications.
What are dapps?
Decentralized applications are similar to regular applications, and offer similar functions, but the main difference is that they operate on a peer-to-peer network the same as relying on a blockchain network.
This means that there is no single person or entity controlling the app.
There are major advantages and conditions for the decentralized applications:
The application has to be open source and run on its own without any entity controlling it.
Data and records must be public.
You should use a specific digital currency to help keep the network secure.
While these are beliefs that many in the blockchain and crypto community believe should be upheld, as the industry matures, there are many dapps that use some or a combination of the features mentioned above, and some of them only carry the label without any reliance on the above.
What are the benefits of dapps?
Dapps contain many interesting aspects which can be summarized as follows:
Resist censorship: It is very difficult for governments or individuals to control the network on which the decentralized application operates.
No downtime: Relying on a peer-to-peer system ensures that dapps continue to run even if individual computers or parts of the network crash.
Dependence on blockchain technology: Since decentralized applications are made from smart contracts, they can easily integrate cryptocurrencies into the core functions of the Dapp decentralized application.
Open source: This encourages the widespread development of the environmental dapp decentralized application system that enables developers to build decentralized applications with more useful functions.
Challenges and weaknesses in dapps decentralized apps?
While decentralized applications promise to address many of the main problems faced by regular applications, they also have negative aspects, and these negatives are as follows:
Hacking: Since many of the decentralized applications are run under open source smart contracts, this gives hackers an opportunity to explore applications for vulnerabilities, and this has already led to a series of hacks that hit the famous Dapps decentralized applications.
Difficulty to use: Lots of Dapps have poor interfaces, which has caused many users to stop running them.
Small number of users: Like many applications in Web 2.0, the more users of a decentralized application, the more effective the network in providing those services, this is often referred to as the network effect. For decentralized applications, they suffer sharply from low numbers of users, making them less Its effectiveness, and it can also make it less secure, as the security of an application can often depend on the number of its users.
Best Ethereum-Based Decentralization Applications:
MakerDAO tops the list of the best Ethereum decentralized apps, as this app provides a smart contract that allows users to interact with the “Dai” stablecoin system.
At the time of writing this article, "MakerDAO" has more than 5,000 daily users, and according to the "DeFi Pulse" website, MakerDAO has $ 1.9 billion in total booked and closed value.
There is also an app “Uniswap” that rotates in first place with “MakerDAO”, according to “ Defi Pulse ”.
With more than $ 2 billion in total closed value, the "Uniswap" automated cryptocurrency exchange currently maintains more than 3,000 users per day, according to the "State of the Dapps " website .
Best Tron-built DApps:
Games dominate the decentralized applications space built on the BlockchainTron.
IOI , the world's first real-time cryptocurrency trading game, is being used by more than 1,400 daily users at the time of writing this article.
There is another game called “ECO Game Center” which is used by more than 100 daily users.
This game is based on a unique approach based on smart contracts, giving players an opportunity to generate income.
Best EOS Based Decentralization Apps:
The community of DApps built on the EOS blockchain is still relatively young.
However, this does not mean that there are no prominent decentralized applications built on EOS, but rather there are several of them, such as:
Yup, Upland, and Chain Clash.
"Yup" aims to create social consensus on the Internet by rewarding content based on user interaction.
How about CryptoKitties?
CryptoKitties is one of the most popular decentralization apps, and it went viral soon after its launch in 2017 when high levels of transactions began to slow down the Ethereum network.
In CryptoKitties, users buy digital cats and see them as unique, non-exchangeable glyphs, which means that no one can copy or steal them.
In May 2020, it was announced that the CryptoKitties app will migrate from the Ethereum network, where it was originally created as ERC-721 tokens, to a game's blockchain called “Flow”.
For your information, the most expensive "CryptoKitty" was sold for 170 thousand dollars, while the value of the cat "Vulcat" was estimated at one million dollars, who was born on September 12, 2018.
The future of dapps:
Dapps are still in their infancy.
However, there are actually thousands of dapps out there that offer a myriad of services, whether those related to playing games, exchanging money or raising digital cats.
By the second quarter of 2020, the volume of decentralized applications transactions reached $ 12 billion, an increase of $ 4.5 billion from the previous quarter.
Nevertheless, there is still a lot for decentralized applications to do, as developers and networks that build decentralized applications on them still have many challenges to work on, including scalability, security, and user experience.
