With the explosion of cryptocurrencies and blockchains, we are seeing more and more terminology in this area and one of them is Decentralized application (Dapp).
What is dApp?
DApp - Decentralized Application is a very new concept that confuses many people.
If you want to find the most famous example of Dapp, Take a look at the case of Bitcoin. Bitcoin is a decentralized blockchain solution that allows financial transactions to be made. Bitcoin has proved that it can effectively solve problems arising from unreliable and scalable electronic cash systems using a peer-to-peer ledger - Bitcoin blockchain. Besides being a peer-to-peer cryptocurrency system, Bitcoin is also an application that users can interact with through computer software.
According to Ethereum White Paper, decentralized applications are divided into three main categories:
- Financial applications: These applications provide users with financial management, both in fiat and cryptocurrencies.
- Semi-financial applications: These are applications related to money, certainly, but finance is not the focus of how this application works.
- Non-financial applications: These are applications that do not involve money, such as identity verification, voting systems, administrative tools, or even decentralized file storage systems.
How is the decentralized application?
According to the Theory of Decentralized Applications White Paper, an application is only considered a DApp if it meets the following criteria:
- Open Source: The application must be open source, run automatically, and not have any organization or individual control the majority of its token. The application can adjust its protocol to meet proposed improvements and market feedback, but all changes must be decided by the consent of the users - those DApp shareholders.
- Decentralized: Application data and activity records must be encrypted and stored in a public decentralized blockchain to avoid centralization, easily becoming a vulnerable point.
- Token: The application needs to use an encrypted token. This token is required for access to the application and any valuable contributions will be rewarded with the application's token.
- Algorithm: The application must generate tokens according to the standard cryptographic algorithm to allow mining through network nodes. For example, Bitcoin uses the Proof of Work algorithm.
Based on the characteristic of having its blockchain or building on another blockchain, there are three types of DApps:
- Type 1: Decentralized application has its blockchain (such as Bitcoin and Ethereum).
- Type 2: Decentralized applications use the blockchain of Type 1. Dapps 2 are the protocols and token issuance needed to perform its functions.
- Type 3: Decentralized application uses the protocol of type 2 decentralized application. These dApps are also protocols and have their tokens necessary to perform its functions.
Benefits of dApp
Blockchain has brought undeniable benefits to future technology and finance. DApp helps to develop more industries in the future.
A series of young projects are launched, aimed at addressing many limitations in each industry. Whether it succeeds or not is proof of the continued development of applications
Decentralized applications that use peer-to-peer networks help hand over ownership of the data we own. No third party can monitor, modify, or prevent them.
The cuts in intermediaries will bring huge financial benefits for users as well as large organizations, providing opportunities to earn more income for qualified freelancers, reducing commission fees. Expensive as well as cyber scams for both partners.
Classification of decentralized applications
According to statistics, there are a total of more than 1,838 dApps on Ethereum, with 10,730 users and 71,000 daily transactions.
These applications can be divided into the following 7 main groups:
- The betting application
- Social Network
- Other applications
The use of cryptocurrencies and dApps is largely for gaming. Using cryptocurrencies will allow some unique features that cannot occur with fiat gambling. Instant deposit and withdrawal is an example, in addition to the ability to pay currency on a global scale. There is no need to convert traditional currencies to gamble on websites. “Provably fair” is a term derived from Blockchain and Bitcoin gamblers, and decentralized gambling makes it even fairer than that.
Here is a list of the 50 most prominent dApps on the aggregated platform:
The basic application
1. Metamask: A browser plug-in application that allows connecting your device to the Ethereum network.
2. Status: The browser links mobile chat and social media apps with Ethereum tokenization.
3. uPort: An application that securely manages and stores private information and identity data on the Ethereum platform.
4. Brave: The web browser allows integration with BAT and ERC-20 tokens.
5. Toshi (Coinbase Wallet): Provides a solution for managing crypto assets and accessing decentralized websites as easily as downloading a phone app.
6. Ethereum Name Service: Allows personalization for ethereum address names
7. Civic: An application to store and manage personal identity data securely on the ethereum platform.
8. Augur: The market predicts the results of real events.
9. Golem: Supercomputer fully decentralized globally, open-source for everyone.
10. Ujo: A music streaming platform that allows artists to manage royalties and copyrights.
11. Tokit: The app calls for capitalization by tokenizing artists' activities
12. Aragon: The foundation that provides governance for DAO and applications
13. Decentraland: A virtual reality platform that allows users to create, experience, and monetize content and applications.
14. Gnosis: DutchX event prediction market and protocol for digital asset pricing.
15. RARE: Market for exchanging rare and precious art products, authenticated on the blockchain, and traded in cryptocurrency.
16. ETHLend: Decentralized lending platform, in which loans are secured by digital assets.
17. imbrex: Connecting the real estate market through the global free posting network.
18. AdChain: A management platform for advertisers to optimize online advertising.
19. District0x: Application that allows creating markets for exchanging products as well as creating a community
Applications that look for jobs and receive payments in cryptocurrency.
20. Gitcoin: Provides a means to monetize and accelerate the process of developing open-source software.
21. Bounties Network: Create bounty hunting missions paid with ETH or any other cryptocurrency.
22. Ethlance: Find freelance jobs and receive payments in ETH.
23. Balanc3: The accounting platform for digital assets.
24. Minds: An anti-censorship social network platform integrated with ERC-20.
25. Peepeth: Social networking platform like Twitter, but completely decentralized and tokenized.
26. Akasha: The social networking application platform on ethereum.
27. Numa: The social networking application platform on ethereum.
28. CryptoKitties: For breeding and trading, collecting cats.
29. Etheremon: a world of monsters Ethers, which allows trading, collecting, and fighting among monsters from Pokemon.
30. Gods Unchained: The esports application platform.
31. FunFair: A safe, transparent betting platform.
32. Etheroll: Prize-winning game
33. Fomo3D: A Ponzi-filled gambling game.
34. ETH.TOWN: Acting as real estate traders, buying and selling company apartments.
Decentralized exchanges allow exchange and exchange of cryptocurrencies on the Ethereum platform.
35. LocalEthereum: A fast and easy way to transact ETH through a variety of methods.
36. IDEX: Decentralized exchange on Ethereum.
37. AirSwap: Decentralized exchange on Ethereum
38. ForkDelta: Decentralized exchange on Ethereum
39. Bancor: The platform provides liquidity for low-level tokens, integrated with bounty programs.
40. MakerDAO: DAO with various functions such as OasisDEX exchange, investment products, and stable currency DAI
41. 0x: The protocol for decentralized exchanges is used for applications such as Radar Relay, DDEX, and Paradex.
42. Melonport: Decentralized platform for managing and investing secure digital assets.
43. PLAY GOC: Dice bet on the TRON platform
44. Crazy Dog Live: Animal sports betting
45. BIG Game: Play cards, receive money
46. Hold’em PokerKing: Playing Poker receives money
47. Pixel Farrm: Animal betting receives a reward
48. TronVegas: Playing Poke, rolling dice, lucky draw
49. EOSbet: Use EOS to bet
50. Tronbet: Use Tron to play dial, roll dice to get the reward
VakaFx helped you answer the questions about what is dApp and how does dApp use it? Hopefully, some of these articles will bring you a lot of useful information and after reading this article, you will have a more accurate view of the decentralized application. If you have any questions please leave a comment, we will get back to you as soon as possible.
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