INTRODUCTION TO THE WORLD OF DAPPS!!
Read about what Dapps are and how they are different from DEFI. What are benefits and downsides of Using Dapps.
Even a small technology can have the power to revolutionize our daily lives to a great extent and Dapps fits just right in the category.
First things first, let us understand what is Dapps and how is it different from DEFI;
WHAT ARE DAPPS?
Dapps is an abbreviation of Decentralized application. There is no such great difference between a traditional app and Dapp, besides the system they operate upon. Dapps are moreover backed by smart contracts present on blockchain and are grouped with peer-to-peer network.
There is no interference from third parties as Dapps are branched on a decentralized lane. All the transactions and operations on Dapps are crystal clear and publicly recorded eliminating even a minute possibility of fraud.
Dapps can be used for various purposes. Earlier the use was limited to the finance industry, however with more innovation and invention they are now employed and developed specifically for the gaming industry, and vivid social media platforms.
HOW ARE DAPPS DIFFERENT FROM DEFI?
With the gigantic buzz of Dapps and Defi, many Indvidual’s have misinterpret the meaning of both. Defi is not a synonym of Dapps or the other way around. These two hold specific features and key distinctive characteristics.
DEFI & DAPPS can be considered barks of the same trunk with not so many points of difference but definitely a long list of similarities. To paint a clearer picture in your mind, consider these two factors that separate DEFI from DAPPS.
01 Use cases:
The concept of decentralized finance is based on decentralized applications, which is more appropriate for commercial use cases.
In contrast, the usage of decentralized applications is not limited to financial applications. These applications can also be used for games, web browsers, gambling, education, etc.
02 Network access:
Defi is limited to blockchain networks for its operations.
Meanwhile, Dapp’s work on a peer-to-peer network of computers and employ smart contracts, which need consensus to change once launched.
BENEFITS OF USING DAPPS:
1. Decentralized structure — Each party can run the app without having to rely on the others. As a result, the app is usually adopted faster.
2. Data transparency — While privacy laws and regulations differ from country to country, centralized applications still require users to provide them with their own data. Dapps run on a public blockchain, so this information cannot be hidden.
3. Less downtime — Because Dapps don’t require connecting to a single centralized server, they are more robust and flexible than centralized applications.
4. Data cannot be lost: Dapps are more resistant to changes and restrictions since data is never lost once it’s added to the blockchain.
DOWNSIDE OF USING DAPPS:
1. Slow processing: Occasionally, Dapps take a while to load, and payment processing can be a bit slow. In our instantaneous world, this adds lag time to the processes we expect to occur immediately.
2. Developing and maintaining Dapps infrastructure is difficult — Running in a distributed environment makes maintenance, development, and bug fixing more challenging because every peer needs to update their node software.
3. Bug fixing is difficult: Updating and fixing DApp bugs is difficult since each peer in the network must update all the copies on the network.
4. User Verification is Hard: Most centralized apps are based on user verification, which is straightforward because it is controlled and verified by a single authority. Due to the lack of a single entity responsible for KYC verification, DApps are difficult to verify.
The evolution of apps into DApps is attributed to blockchain technology. The advantage of DApps over traditional apps is their potential to become self-sustaining resources by allowing their stakeholders to invest in their development. DApps will soon replace traditional applications for multiple purposes including payments, storage, cloud computing, etc.
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