What is Dapp? The concept of Dapp and their classification

In recent years, open source software that leverages blockchain technology has grown, among them dApps. So what is the concept of dApp, let's learn with us some basic decentralized applications in this article.

What is Dapp?

Dapp is an acronym for Decentralized Application, which means decentralized application. Dapp is a new model created by blockchain technology and smart contracts. Although dApps do not currently have a widely recognized definition, they are generally considered open source applications and do not have a single point of failure.

Although dApps can run on a number of platforms, in this article we will explore how decentralized applications are used on the Ethereum platform.

Applications today can be found on your computer, mobile phone or the internet. Typically, today's applications rely on an intermediary to verify information or facilitate requests. For example, Google relies on its private servers and processing power to provide Gmail. Gmail, then, is made available as a free service to the public and collects, analyzes data from email exchanges, and uses mail for advertising aimed at consumers worldwide.

This is one of the types of concentration; While Google can provide a great service, users don't always have explicit control over their data. While the Internet itself was originally designed to be a distributed web connecting users around the world, 'centralised' middlemen such as Google, Microsoft or Amazon – have emerged to provide the software. much of the backbone of the Internet.

Thanks to the Internet, users can request information stored on servers around the world. While this is convenient, this principle is based on a foundation of trust between the user and the server provider; The information is stored confidentially, in worst cases like hacking or tampering – which can use that data for nefarious purposes.

In recent years, platforms like Ethereum using blockchain technology have emerged to replace internet providers as well as third parties in the matter of data storage or tracking of complex financial instruments. .

While servers and clouds handle the most complex requests a user can conjure up on the internet, Ethereum essentially allows users to decentralize a number of functions that they can rely on for a middleman. time to perform and create those functions in a peer-to-peer environment.

According to the Ethereum whitepaper, decentralized applications, or dApps, are categorized into three archetypes – apps that can manage money, apps that involve money, and 'other' mechanisms such as voting systems. .

In summary, it is difficult to generalize DApp by definition with only 1-2 lines, in short, if an application does not meet all these criteria, it is not a DApp:

+Open Source – The source code of the application is available to everyone.

+Decentralization – Uses blockchain-like encryption technology.

+Bonus – The app has crypto/digital assets to fuel itself.

+Algorithm/Protocol – Generates tokens and has an inbuilt consensus mechanism.

DApps depend on smart contracts

In the context of blockchain technology, smart contracts enable the execution of trusted transactions on a decentralized network that is both traceable and irreversible.

Today's smart contracts make it possible for crypto users to transact anything of value in a conflict-free path and without relying on a middleman.

Basically, users can use dApps in many different ways. Perhaps the simplest method is that a user can exchange Ether (the currency of the Ethereum platform) to settle a financial contract with another user.

Other forms of dApps involve information that is not just stored on a blockchain. For example, an insurance application can verify and adjust the terms of an agreement, but it depends on a number of factors to verify the authenticity of an insurance claim.

To do this effectively, some dApps use smart contracts based on external information provided by “Oracles” – a trusted provider of specific information to inform how and whether the contract is performed.

In recent years, a number of interesting dApps have emerged. Project Golem aims to create a marketplace where users can rent, use or lease spare computing to form a decentralized global supercomputer. Augur intends to create a decentralized forecasting engine for traders. CryptoKitties – a game in which players can own, breed and sell virtual cats for Ether.

Finally, perhaps the most ambitious form of dApp is that of a decentralized self-governing organization (DAO). In a DAO, users around the world use Ethereum to form a leadershipless organization. In the past, DAOs were used as a form of decentralized venture capital, in which users could vote to release funds for specific projects.

The term dApp will continue to evolve as developers will create new technologies within the blockchain platform and aim to decentralize everyday services found on the internet.

Advantages and disadvantages of Dapp


Censorship resistant: Dapps exist decentralized so it is difficult for governments or individuals to control the network.

No Downtime: The peer-to-peer system ensures that Dapps are continuously up and running even when individual computers or departments experience network problems.

Open Source: This encourages widespread development of the Dapp ecosystem. Enables developers to build better Dapps with useful functionalities in the future.


Can be hacked: Running on open source smart contracts is an advantage but also an opportunity for hackers to find security holes to attack.

Usability issues: A lot of Dapps have poor user interfaces and are difficult to use, but this is improving over time.

User-dependent: The more users the Dapp has, the more efficient it will be. In contrast, decentralized applications will struggle if the number of users is low, making them less secure.

Classification of some basic decentralized applications

Dapp applications can be divided into 7 main groups:



Betting Apps



Social Network


Other Dapp Running Networks

If Bitcoin leads the development of the cryptocurrency market, Ethereum has shown the real application potential of Blockchain technology. Ethereum is the biggest platform with a lot of Dapps launching on Blockchain. However, there are still some other potential Dapp networks such as:

EOS: Founded by STEEM Dan Larimer, EOS is one of the most notable projects today. The main aim of EOS is to provide developers with a highly scalable platform that overcomes what Ethereum has failed to do so far.

TRON: Quickly leverage the scalability of this platform to attract a large number of users and developers. Even so, Tron is better known for its aggressive marketing and is promoted by founder Justin Sun.

The future of Dapp

Dapp is still in the early stages of development. As of Q2 2020, the total transaction volume on Dapps has reached $12 billion, up $4.5 billion from the previous quarter. While these are remarkable numbers, Dapp still has a long way to go to continue to grow.

Before Dapp really becomes popular, developers and the platforms they are using still have a lot of challenges to solve, such as: Scalability, security, and user experience. We believe that the current problems will be overcome in the future to take decentralized applications one step further.

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