DApps or decentralized applications are a promising new phenomenon in the world of cryptocurrencies. But what do they mean for the future of the technology industry? Will the development of dapps change the world, like Facebook or Twitter, turning you into a billionaire , or is it just a fad that is not meant to happen? The answers will surprise you!
What is DApp?
DApp is an abbreviation for Decentralized Application (decentralized application). Dapps are applications that run on a decentralized peer-to-peer network, which means there is no single point of control or failures. Also, any dapp must meet the following criteria :
- Open source – the application code is available to everyone
- Decentralization – application of cryptographic technology comparable to blockchain
- Motivation – application use crypto-tokens / digital assets to stimulate users
- Algorithm – creates tokens and has a built-in consensus mechanism
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In this article, you will learn what advantages DApps development provides, what the principle of operation of decentralized applications and in what areas they are used, and also understand how to develop DApps on your own.
Why is DApps development so useful?
DApps are the future of app development. They offer a unique set of features that can help businesses and entrepreneurs bring their ideas to life. The development of dapps is so useful because it has a number of characteristics:
- Censorship Resistant : A decentralized application is censorship resistant because it is managed by a network of computers rather than a single central server.
- Zero Downtime : DApps are always available and never experience downtime.
- Blockchain-Based : DApps are built on blockchain and rely on the underlying technology for security and transparency.
- Open source : The code of all DApps is in the public domain for everyone, which ensures that no one interferes with its work.
In addition, there are various frameworks. They will allow entrepreneurs who want to create a dapp to develop blockchain-based applications from scratch in just a few minutes.
How do dapps work?
Dapp is a combination of a front end user interface and an internal smart contract . The front end user interface is what people see and interact with; an internal smart contract manages all the logic behind it.
Decentralized applications are often released on the Ethereum or Binance Smart Chain blockchains. Let’s take a look at how dapps work on the Ethereum blockchain.
The architecture of dapps includes several components :
- Blockchain Ethereum;
- Smart contracts;
- Ethereum virtual machine (EVM);
- External user interface.
Below you can see exactly how the DApp architecture works:
The Ethereum blockchain is a decentralized, public ledger that stores transactions and data . Thousands of computers around the world are running software that checks and processes this data .
Smart contracts are a set of data that run on the Ethereum blockchain. They are written in high level languages such as Solidity and Vyper .
The Ethereum Virtual Machine (EVM) is a shared computing machine that is responsible for implementing the logic specified in smart contracts , and handling state changes that occur on the Ethereum network.
Front-end is the component of DApps that is visible to users and with which they are able to interact. The front-end also provides interaction with the application logic defined in smart contracts .
Relationship between front-end and smart contract on Ethereum
For dapps to work effectively, communication between the front-end and smart contracts on Ethereum is necessary. However, the Ethereum network consists of many nodes distributed over a decentralized system. Each node keeps a copy of all smart contracts and their associated data, as well as the state of the virtual machine in which each smart contract runs.
To interact with the blockchain, you need to connect to a node . The node sends a request for a transaction in order to implement it on the Ethereum virtual machine (EVM). Miners register a transaction and propagate the resulting state change to other nodes in the network. Transferring a transaction can occur in two ways :
- Do it yourself , by setting up software that runs on an Ethereum blockchain node;
- Third party services .
Third party services may offer assistance in creating, configuring , and provisioning nodes .
Why use third party services?
Third party services can be used to provide various blockchain features without the need to run a full node. Installing a new Ethereum node on a server can take a lot of time and money , and as the DApp scales, the number of nodes will constantly increase .
The nodes that a user connects to to work on the blockchain are often referred to as ” providers “.
The Ethereum provider implements the JSON-RPC standard. This creates a common set of tools that allows the front-end to interact with the blockchain.
Once you have connected to the blockchain with a provider, you can process the state that is on the blockchain.
But if you need to write to the state log before sending the transaction, you need to fulfill one more condition – ” sign ” the transaction using the private key .
Every time the front-end requires the user to sign , it contacts Metamask . Here Metamask acts as a signer .
Role of Metamask in Dapp architecture:
To connect to the Etherium network, we need a special browser extension , which is Metamask . Metamask allows you to link the blockchain to your personal account.
The user’s private keys are hosted by Metamask in the browser , and when they want to make a transaction, they need to “sign” it using this key.
Metamask acts as both a provider and a signer.
The Ethereum blockchain is one example of a platform that allows the development of dapps . There are also other examples like:
Today, there are many areas in which dapps are used, and there are those that are still just ideas waiting to be developed.
What types of DApps are there?
The scope of DApps is wider than almost any other application. Blockchain is used in a wide variety of industries, such as decentralized finance or the gaming industry, and each of them has its own specific needs.
Let’s take a look at the most promising types of DApps.
DApps in DeFi
DeFi is a decentralized financial system that uses dapps to provide users with access to financial services.
The main purpose of DApps in DeFi is to provide an alternative to centralized systems . This means that many DApps are designed specifically for use in the DeFi ecosystem , giving users more control over their finances. For example, the Uniswap financial platform allows users to trade cryptocurrencies without any involvement of a centralized third party .
DApps in GameFi
The use of DApps in GameFi allows you to add a new level of interactivity to games that was not possible before.
You can use dapp to allow players to create their own virtual environments and then interact with them. DApps can also be used as an alternative payment system for in-app purchases , allowing players to pay for virtual assets with cryptocurrencies instead of real money .
For example, the online video game Axie Infinity allows its players to purchase digital pets , called Axes, and use them to fight, explore, and breed with other Axes.
How to develop a DApp yourself?
The blockchain world is creating a huge number of new business opportunities . If you’re looking for more transparency, security, and efficiency, DApp development is sure to grab your attention.
Building decentralized applications is quite different from developing other custom programs, so let’s go through the main steps of DApps development below.
Define the problem
First, you need to define the problem you need to solve , or in other words, the use case for your future DApp . Start by describing the challenges you are facing and assess whether a decentralized application can help solve them.
Do you want to exclude third parties from your transactions? Or maybe you want to distribute information and services away from a central location? Either way, the first step is to figure out what problem DApp can solve for you.
Create Proof of Concept
Proof of Concept (PoC) is the process of verifying that an idea has potential in a real-life situation. Its purpose is to determine if the project is feasible and will function as planned.
All in all, it will help you test your DApp with minimal resources before spending a lot of time and money on the dapp development process . Take this step seriously as it can help you identify pain points and areas of improvement.
Choose DLT Platform
If your PoC has been successful , it’s time to think about implementing the project . Because there are different platforms for developing a DApp, you need to determine which one is best for you.
Currently, Ethereum is probably the most suitable option due to its smart contract capabilities. However, be sure to do your own research to choose what is right for you.
Develop and test DApp
After choosing a DLT platform, you can start developing and testing a decentralized application . Whether you use custom app development services or build your own app with your own team, make sure your DApp goes through rigorous testing.
Launch your DApp
Finally, after testing, your DApp is ready to go! It is very difficult to make changes after the application has been deployed, so take your time with this process.
Application launch is the most important stage of DApp development, so approach it responsibly.
We have covered the main stages of dapps development. Whether you are a beginner or an expert, you can use this approach to build your own decentralized application by taking advantage of the unique power of the blockchain.
Conclusion: Is there a future for DApps?
Dapps are constantly improving and will soon be able to provide their users with features and functionality that were previously not available in other applications . However, the future of decentralized applications (dapps) depends on several important factors :
- First, they must be able to scale efficiently to support large numbers of users .
- Second, they must be more secure than their centralized counterparts, which are vulnerable to hacking and other security issues.
- Third, they must be able to provide a user experience that is superior to that offered by centralized applications such as Facebook and Google.
In the near future, dapps development will reach a new level . Dapps will be able to do all three things and offer an improved user experience at a competitive price compared to existing solutions from traditional companies.
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