The world is evolving and so is the tech world as we know. Have you ever imagined finding apps not exclusively owned by anyone or doesn’t have a central server or doesn’t have any downtime? Sounds too good to be true, right? It’s high time you knew about DApp (Decentralized Application).
But actually, it isn’t just a mere imagination now. You can find such kind of apps these days or maybe you are using any of them but don’t know yet. These newborn apps are better known as the decentralized apps or DApps in short.
Before we jump on to the topic elaborately, you should have the understanding of the technology called blockchain. The blockchain is a technology invented back in 2009 by an unknown entity called Satoshi Nakamoto. Unknown as in no one knows who Satoshi is. Maybe Satoshi is a guy or a girl or any secret society or maybe even alien. Who knows? Could be!
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How DApps Came to Light?
The blockchain is simply a digital ledger where everyone can store and share transactions within the network. You could call it an open book. The main feature of a blockchain is it is decentralized. That means, no one can control it, it’s autonomous.
Bitcoin first used the technology to introduce a decentralized currency that eradicates the need for any banks or third party to validate transactions. Later in 2015, a Russian boy genius named Vitalik Buterin took the technology even further. He invented Ethereum and showed us that the blockchain can have many other aspects than a digital currency.
Thus came DApp. Decentralized Applications don’t have a central server and no one can control or modify or delete the database. To have a better understanding you have to jump a bit deeper.
Consider, websites like Facebook. Facebook has central servers in North Carolina, USA. So, that means, by any chance if any hacker somehow hacks it down, we will lose Facebook. Even any government can’t take it down if they shut down the data center.
But the Decentralized Application is beyond that. It doesn’t have any central server. Instead, all the data are distributed throughout the network of the blockchain. Also, the source code is open for all.
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Here’s a list of DApp features –
- Its source code is available for common users.
- Adopts the blockchain technology and it is decentralized.
- The app has its own digital asset or cryptocurrency.
- Maintains a consensus algorithm for users i.e. PoW or PoS.
Read More: How To Kickstart Career In DeFi?
3 Types of DApps
Vitalik and his team talked about three common types of DApps on the white paper of Ethereum. They are –
- Money Centric DApps
These are the most famous dapps that require digital currency to validate contracts between parties. For example, Ethereum has Smart Contract. A Smart Contract is self-validating when the conditions of the contract get fulfilled. Although, all the nodes within the blockchain network must validate it first.
- Apps Requiring Money and Variable Information
Such kind of apps need crypto tokens as well as some protocols. For example, if you have a product delivery app, you have to consider the price of a product and the distance between two parties. Here, the distance between two parties is the variable information or the secondary protocol.
- Apps Managing Governance and Voting
DApps also introduced another fine technology called DAO. DAO stands for Decentralized Autonomous Organizations. These organizations are formed when two or three parties try to pursue a common goal and are bound by a Smart Contract. The party members have a consensus among themselves and they don’t have any leader. The community members can thus have a clear understanding.
Want to know more about EOS Decentralized Blockchain Applications? Check out this article: EOS DApps Landscape: Complete List Of EOS Decentralized Blockchain Applications
How Could You Develop DApp?
You can follow a simple 3-step guideline to develop DApp yourself and start your own business. You could even check out the DApp Development Guide if you are a hardcore developer. But for now, let’s discuss the simple methodology.
Step 1: Publish a White Paper
First, you have to write a white paper where you will elaborate on the concept, feature, technical POV, the importance of the app you are planning to develop. Give the “how you could achieve your goal” some serious thought and write down the road-map.
Remember, the roadmap is important. This will help you to make your idea more sellable.
Step 2: Launch an ICO
ICO is the new way of fueling start-ups. What you are going to do is sell cryptocurrencies to crowdfund your project. Be specific and vividly clear about your plans and share everything to make your app and ICO more trustworthy.
Also Read: NEO dApps Ecosystem: The Complete List
Step 3: Launch and Implementation
Now you will just have to develop the app and launch it in the market. The more your app is promising, the more money it can gather.
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DApps are modern day solution for launching a new business. You will not have to beg to the VCs to fund your project. Start working on your own project have faith in the common people. Best of luck.