What are dApps (Decentralized Applications) & Examples of dApps

what is dapps

Do you know how your phone can have a bunch of different applications there’s Facebook and Instagram and Gmail and youtube? They’re all applications that run code that was created by the company so that you could interact with their company. Well, the dApps or a decentralized application is very similar in how it works except instead of reporting back to Facebook servers or tick-tock servers. This app reports back to the blockchain you’re simply interacting with the blockchain through the application.

We are going to explain exactly what a dApp or decentralized application is how they work and why they might hold the key to the future of the technology. First, we’re going to go over some of the benefits of dapps, and then we’re going to cover the different types of them including a bunch of specific examples.

The first thing you need to know is that dapps can only be built on smart contract networks which means a blockchain like bitcoin cannot utilize dapps bitcoin was designed to only allow the sending of its native coin Ethereum however can utilize something called smart contracts.

What is Smart Contract?

They allow two people to make an agreement written in code so that they don’t have to trust a third party to follow through they can simply

Just trust the code another benefit is that since the code is out there to be run it is what we call open source which means anyone can look at the code this allows a lot more trust to be given to the application we can’t look at how Facebook recommends us friends to interact with or how to google knows what we ate for dinner but with any smart contract we can look at the code and see how it works this is a big benefit over centralized applications

Benefits of dApps

dApps Are Also Censorship-Resistant

This is a fancy way of saying they don’t have to answer to governments or corporations or even specific people.

It’s really important for financial applications this way nobody can control your money

Never Go Offline

Another big benefit of decentralized applications is that they will essentially never go offline now there have been times where I’ve seen Facebook or even youtube down maybe their servers have a bug or there’s an outage or they simply just do not work it’s

usually for a very short period because there’s a lot of money involved

but technically the government could come in and just shut them down since dapps run on the blockchain they will never go down because they are run by hundreds of thousands of computers all around the world, it would be infeasible to turn them all off if not

Types of dApps

  • Financial dApps
  • Decentralized dApps
  • Game dApps

Financial dApps

defi financial dapps

Picture Credit Goes To Youtube Channel Named Whiteboard Crypto

There are many decentralized applications that provide a way for people to invest in something called decentralized finance. Decentralized finance or DeFi is a new monetary protocol that uses blockchain to allow investors to do new things and even some old things with their money. With a ton of new benefits let’s go over some of the ways adapt may use your money number one borrowing and lending. 

AVE is a platform that allows a user to deposit their Ethereum or Matic tokens to certain smart contracts whenever you deposit these coins and tokens you can receive an interest rate on them allowing you to invest with them AVE also lets you borrow tokens.

Decentralized Exchanges

Exchanges are decentralized applications that allow traders to take some of their tokens and trade them for another token usually with really low fees almost instantaneously and without needing any background checks or identification verification that was a mouthful but what it means is that you can sell a million dollars of Ethereum without anyone blinking an eye or asking any questions by the way these exchanges are called dexes which stands for decentralized exchange. Examples are PanCakeSwap, SushiSwap, and many more.

Game dApps

game dapps

Picture Credit Goes To Youtube Channel Named Whiteboard Crypto

Now of course there’s going to be games that mean programmers are the ones creating these daps. They’re going to find a way to gamify space number one is cryptokitties

Cryptokitties is a decentralized application that allows you to buy these little cute kittens. Technically what you are buying is the NFT data of rights to that certain token that represents the kitty. However, the fun part of this game is that you can collect a bunch of these kittens and even breed them to create more kittens in the community. The older generation kittens are usually the most valuable and you can actually sell them for a profit or maybe sometimes a loss. If you play the game long enough even more so you can rent out your kitten to breed with someone else’s kitten as a strange form of passive income on the blockchain.

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