Decentralised Apps (DApps)

    Pathik Bhattacharya
    Pathik Bhattacharya
    Published on October 14, 2022 4:29 PM

    Updated on January 16, 2023 1:42 PM

    DApps are decentralised applications built over blockchain without any intermediate body interfering between service provider and consumer. The model is based on a Peer-2-Peer framework service.
    Decentralised Apps (DApps)

    Why pay a mediator for a service from a company when you can use an app that links service providers and consumers directly and doesn't charge a fee? That is the assurance that dapps, or decentralised apps, provide.

    Decentralized apps, or Dapps. They do comparable tasks and are similar to regular apps, but the main distinction is that they use smart contracts to run on a peer-to-peer network like a blockchain.

    Dapps cannot be governed by a single person or entity because they are decentralized. Dapps frequently have the following attributes as well:

    • Since they are open-source, nobody can control them and they run independently.

    • Their information is available to the public.

    • They protect their network with a cryptographic token.

    There are dapps that employ some, a combination of, or none of the above qualities, despite the fact that many in the blockchain and cryptocurrency community believe that dapps should have all of these capabilities. This is because the industry has evolved.

    How Does DApps Work?

    Dapps use a decentralized network rather than a single server to run its backend programming, or "smart contracts." They store data on the Ethereum blockchain and implement their app logic using smart contracts.

    A smart contract functions perfectly in accordance with a set of rules that are visible to everyone on the blockchain. Think of a vending machine: if you give it enough money and the appropriate options, it will give you what you want. And similar to your Ethereum account, smart contracts have the ability to store money. Code may now mediate agreements and transactions because of this.

    Dapps cannot be changed once they are launched on the Ethereum network. Dapps can be decentralized because the logic written in the contract, rather than a person or organization, controls them.

    Benefits of Using DApps

    Apps that run on a centralized network have several advantages over those that are decentralized. The novel smart contract's primary benefit is the absence of a third party. Anyone can receive money using an app like Venmo, but there are fees associated with transferring that money to a bank account. And moving trucks frequently arrive late.

    However, using a decentralized software to send money implies there are either no or very little charges involved. Users save money on fees and time due to the near-instantaneous nature of decentralized transactions.

    The following are some key significance DApps provides to its users:

    • Without a single point of failure, the network is particularly difficult for governments or other strong people to censor.

    • No downtime - By relying on a peer-to-peer network, the dapps are protected from interruptions caused by malfunctioning computers or sections of the network.

    • Blockchain-based apps - Since they are created using smart contracts, it is simple to incorporate cryptocurrencies into the essential features of the dapp.

    • Open-source - Open-source dapps promote the wide expansion of the dapp ecosystem and give developers the ability to create better dapps with more interesting or useful features.

    DApps Short Comings

    While dapps promise to address many of the problems that affect conventional apps, there are some drawbacks as well.

    For instance, the absence of a centralized authority can result in delayed platform updates. One party can simply update their software whenever they want, after all. But even for a small bug fix, a DApp needs 75% approval from the acting governance. As consumers weigh the benefits and drawbacks of any development, this could take weeks or even months.

    Hacks - Since many dapps use open-source smart contracts, hackers have the chance to examine the code and scan the networks for flaws. This has sparked a wave of hacks on well-known dapps.

    Usability - Many dapps have subpar user interfaces, which has turned off many users. On our reviews page, you can read all of our evaluations of these services. However, things are getting better as time passes.

    Users - Similar to many Web 2.0 apps, a dapp's network may serve services more efficiently with more users. The network effect is a common term used to describe this.

    How DApps are Used All Around the Globe

    DApps in the financial sector may seem obvious, but they can innovate across all sectors. Let's take a broad look at some of these advantages in sectors including gaming, banking, social media, and more.


    DApps can be used by both borrowers and moneylenders for business purposes. Lenders with banks receive a set interest rate based on the amount of money they have saved. Saving more money increases both the bank's ability to lend and the amount of interest that both parties can earn. For merely providing a location to store money, the bank, which serves as a centralized institution, takes a larger cut than lenders might prefer.

    Since there is no intermediary involved in a DApp, lenders receive 100% of their interest. Along with having more control over loans, they also get paid in tokens by the platform they chose for their lending.


    The use of DApps in gaming has always been interesting. Currently, characters in video games must be developed over many hours, often with real money spent, only for them to wither away after the player moves on.

    DApps offer a more valuable and intriguing alternative. Consider the game CryptoKitties as an illustration. Players obtain a cat, which is a tokenized asset, in this example. If properly raised, that cat will then develop through time and increase in value. The user can then sell that cat for whatever they want, provided there is a willing bidder.

    Social Media

    Users would gain a lot from social media DApps. First of all, there is no one to filter posts, ensuring freedom of expression for everyone. However, if certain posts start to cause issues, the community might decide to have them removed.

    Influencers can also make extra money. Popular tweets are where the business makes the most money on established networks like Twitter. All the website traffic generates advertising income for it, while the creator receives nothing financially.

    Users can run advertisements and receive their full payments instead of a firm taking a cut while utilizing social media DApps that may have a built-in tipping system using its token.

    Scope of DApps

    Dapp development is still in its infancy. However, there are already tens of thousands of dapps that provide a wide range of activities, including trading NFTs, investing in DeFi, and playing video games.

    There were about 2.4 million daily active users of dapps by Q1 of 2022. But there is still much to be done. Scalability, security, and user experience are just a few of the issues developers and the networks on which they create dapps must address before they become widely used.

    The dawn of the decentralized app will arrive once they do.