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Why Build Decentralized Applications?

 

Decentralized applications (dApps) are applications that run on top of blockchain networks. They can be designed for several real-world use cases. Although dApps can appear similar to web applications in terms of user experience (UX), their back-end processes differ. Decentralized apps eschew centralized servers to transact in a distributed and peer-to-peer (P2P) fashion as opposed to using the central HTTP protocol to communicate.


DApps run everything from games and marketplaces to decentralized finance (DeFi) lending platforms. Everything has pros and cons, and dApps are no exception. Let’s start with the advantage of decentralized applications:


Simple to develop:


dApps use very complex protocols to achieve consensus, the greater complexity the great abstraction provided for the developer looking to implement specified business logic.


More control:


Enterprise blockchain-based applications are usually designed to connect different organizations or trading partners. If even a part of the solution is centralized, each organization must trust the entity controlling that part. Fully decentralized applications don’t have this problem, because a decentralized structure allows each party to run the app without having to trust any other party. This usually results in faster adoption of the application.


Safer data:


dApps are based on a shared database that replicates stored information across all other nodes. This means that hijacking a single node doesn’t restrict the organization’s ability to access its critical data.


Open source:


All dApp code is supposed to be open source, which means it’s transparent and can be viewed by anyone who wants to verify the developers’ claims on what it does.


Transparent data:


While privacy laws and regulations differ from one country to the next, centralized applications still require users to ask them for their data. Since dApps are on a public blockchain, this information can’t be hidden.


Less downtime:


dApps are more robust and flexible than centralized applications since they don’t require connectivity to a single centralized server to run. This means that enterprises can ensure minimal interruptions and downtime for maximum business continuity and resilience.


Data is never lost:


Once information is added to the blockchain, it’s stored permanently, which means dApps are more resistant to modifications or restrictions.


Can’t be blocked:


dApps aren’t hosted on any particular IP address. Since there is less authority owning a dApp’s network, it is much more difficult for external authorities to block a dApp.


Cost reduction:


dApps offer a higher transaction speed, which translates to cost reduction. Unlike centralized systems, organizations don’t need to install heavy servers and hire experts to manage and maintain their servers and data.


DApps Are the Building Blocks of the Future


DApps are not just for simple applications. Developers can design decentralized autonomous organizations (DAOs) that operate as apparatuses governed through code democratically voted upon by users. The emerging marketplace of Ethereum dApps is being built with composability in mind, which means that different services can be used interoperably to fulfill a near-limitless range of intended use cases. Sometimes referred to as “money legos,” dApps can be stacked on top of each other and are highly modular, yet intuitive and simple from an end-user perspective.


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