With the development of Blockchain, many projects called DApps have emerged. So what are DApps? What makes them special? Let’s learn about the characteristics of DApps through the article below
What are DApps?
DApp (Decentralized Application) is a decentralized application built on a decentralized network that supports Smart Contracts and has a frontend interface for users. These applications will focus on solving problems in a specific area.
Since decentralized applications are built directly on Blockchain Platforms, the nature of these decentralized applications will depend on those Blockchain Platforms. For example, transaction speed, TPS (transactions per second), scalability, stability, etc.
The first Decentralized Application appeared on Ethereum on April 22, 2016.
Characteristics of DApps
The common characteristic of DApps is decentralization. Therefore, no one can control the activities of users on these projects. In addition, the trend of decentralized applications in Crypto is usually open source, the community can create other projects from the code of existing decentralized applications.
Besides, in order to build a decentralized application, the Blockchain platform must have Smart Contracts. Contrary to the belief of many people that any Blockchain can create an ecosystem with hundreds of applications, only those Blockchains that support Smart Contracts can support the development of these applications.
An obvious example is Terra. Before 2021, Terra was just a Blockchain for payments. But since Terra supported Smart Contracts at the end of 2020, the Terra ecosystem exploded strongly in 2021.
The next characteristic is that decentralized applications usually share common development steps, including ideation, publishing a Whitepaper, creating a token, distributing tokens, etc.
Classification of DApps on Blockchain
If classified by application, DApps can be divided by purpose of use, such as: exchange, games, finance, gambling, etc.
If classified by Blockchain, DApps will be divided into 4 types:
- Type I will operate on their own blockchain. Examples: Bitcoin and Ethereum.
- Type II are protocols that operate on the blockchain of Type I. These protocols themselves have tokens necessary for their function.
- Type III are protocols that operate using the protocols of Type II. Similar to Type II, Type III also has tokens necessary for their function.
Applications of DApps on Blockchain
DApps are created to solve specific problems. For example:
- To solve the payment problem, we have applications that serve payments like Kado on Terra.
- To solve the trading problem, we have DEXs like Uniswap, PancakeSwap, etc.
Some projects work on more “abstract” areas, such as Oracles used to bring data from the real world into Crypto, or those working on infrastructure, etc.
Speaking of practical applications, there are also some DApps working in the medical field, or serving charity, such as Angel Protocol on Terra.
