Decentralized Applications (dApps) || Steemit Crypto Academy Season 5 - Homework Post For Task 8 by @yakeen20
Introduction:-
Question 1
What are Decentralized Applications (dApps)?
First of all, let's look at the word decentralized. Decentralized refers to something or anything that is not harnessed or controlled by a central authority or a third party. Decentralized applications (dApps) are digital applications that operate on a blockchain network or a peer-to-peer network that is interconnected with many computers. Decentralized applications make good use of the technology of blockchain by providing access to users to fully have control of their data without the interference of any third party. Through this the system becomes decentralized. Social media applications such as Twitter and Instagram are both centralized platforms and they do not grant users the access to manage and control their own data.
Decentralized applications also make good use of peer-to-peer networks in their operation. This indicates that the nodes are directly connected to each other such that no central authority or individual has control over them. Transactions performed in Decentralized applications utilize a consensus mechanism that processes data when nodes are being approved.
In decentralized applications blockchain networks, users have access to applications codes recorded on the blockchain network by providing a well-trusted and secured platform. The following are different decentralized applications that operate on different blockchain networks.
Decentralized applications are also used as social media platforms and a good example is the steemit platform. Decentralized applications are again used for other purposes such as DeFi and exchange, gaming, etc.
| ETH | TRX | BSC |
|---|---|---|
| MetaMask | Sunswap | Bogged finance |
| Open Sea | Social swap.io | Crypto mines |
| Sushi | JustLend | Deri protocol |
| Polygon bridge | JustSwap | BNB matrix |
The Working System of Decentralized Applications
Decentralized applications have a very simple and comprehensive working system which I would be elaborating more on that in this article. The working system of dApps uses a peer-to-peer transaction method which indicates that transactions can only be verified by validators on the blockchain once the transaction is executed after which it then completes. Transactions performed are fast and quick and take less time to complete. Validator on the other hand is termed as one who satisfies the necessary requirements of the blockchain's consensus mechanism in which the dApps operate.
The working system of decentralized application utilizes smart contract technology and this aids to make transactions more secured, reliable, decentralized, and fast. Taking for example the UniSwap decentralized application can be used to process a transaction of swapping an Ethereum cryptocurrency to other currencies such as INCH cryptocurrency through the smart contract. The working system of dApps is done without any interference or without the involvement of any other third party in controlling the process. The decentralized application users fully have control and access to their account keys and this makes it very difficult and impossible for any central authority to have access to their account or to block them.
Differences Between dApps and Other Application
| Decentralized Application (dApps) | Other Application |
|---|---|
| Decentralized applications are less faster or slow in processing transactions | Transactions speed of other applications are much faster than dApps |
| Decentralized applications are more secured and immutable | Other applications are not secured as compared to decentralized applications |
| Decentralized applications are more trusted because users fully have access to their own data | The other applications are also more user-friendly |
| Decentralized applications usually come with a fee for their usage | Most of the other applications are free and do not require any fee for their usage |
| Decentralized applications operate on a peer-to-peer blockchain | Other applications are mostly controlled by a central authority |
Advantages of Decentralized Applications
High Security:- In decentralized applications, the user's keys are not being controlled by any third party but rather the user is fully in control or has access to the keys which makes it very difficult for users to hack them. As a result, provides a secured and safe platform for users.
Decentralized applications are open to development:Decentralized applications have provided the opportunity for users to create or build new tools and products on decentralized networks.
It is less Censorship:- The decentralized application networks are less censorship to the extent that government finds it very difficult to censor traffic on the network. This helps to keep messages secured and private when communicating on the decentralized network.
It is decentralized:- Decentralized applications as the name suggests are all decentralized such that every user has total access and control over the transaction performed on the network.
Disadvantaged of Decentralized Applications
There is difficulty in updating decentralized applications and or fixing bugs in dApps due to the pressure of updates on the network by the peers.
Decentralized applications are costly due to the duplication of function it employs
Decentralized applications are difficult to build or develop due to the implementation of many protocols.
In dApps, there is a bit of difficulty in maintaining a uniform function on the network due to the usage of different methods from that the various organizations.
How dApps Developers can promote their Apps
The following can help dApp developers in promoting their applications;
Availability of Tokens: A dApp developer should have a token available through which others can purchase via ICO and later sell them to make profits. Through this, more awareness of the application would be promoted and this would help many investors to join and invest in it.
Make good use of attractive features: Developers can also promote their applications by making good use of attractive and beautiful features.
Rewarding users with native tokens: The available native tokens on the platform can be used by developers to award users that participate on the platform. This would help encourage members as well as others to join the platform.
What Should We Pay Attention To When Using dApps?
The cost of transaction:-the transaction fees of decentralized applications should or must be considered first before using the application.
The Security:- One must ensure that he/she knows the status of the decentralized application's security before use so as to get affirmed of the security of the dApp he is using. This is to avoid unwanted losses or attacks.
Research more on the dApp Blockchain:- It is very necessary for one to research and know the blockchain on which the decentralized application runs so as to know the type of coin or currency to transfer.
How Do We Find The Information Of A DApp That We Want to know? Provide The Steps [Screenshot Required]
In order to find information about decentralized applications, the following website would be explored.
Step 1:- First of all, visit the website below DappRadar.
Step 2:- Click on Explore Dapps and More as shown below
The list below indicates the various categories available on the platform;
DeFi with Katana as an example
Gambling category with TTGuess as an example
Socials category with steemit as an example
Exchange category with SunSwap as an example.
Step 3:- From the top blockchain dApps I would then click on Tron
Step 4:- From the list of top Tron Dapps I would then click on SunSwap application.
Step 5:- From the Sunswap application window we can find the following information:
Transactions
Balance
Total number of users
Total volume of the market
HIstorical activity of Sunswap, and many more as shown in the screenshot.
Step 6:- From the Sunswap homepage interface, I would then click on Open Dapp which would immediately direct me to another link.
This then directs me to the SunSwap page which is requesting me to connect my wallet as seen below.
Conclusion
To conclude, I would like to summarize what we have done so far in this article. First of all, we discussed what decentralized applications are and how the system works as well. We also looked at the differences between decentralized applications and other applications.
Furthermore, we discussed the advantages and disadvantages of decentralized applications and we also looked at how Dapps developers can promote their applications. We again looked at what to pay attention to when using decentralized applications. Finally, we also looked at how to find information on a decentralized application.
I would like to say thank you to professor @wahyunahrul for such a wonderful lecture taught this week, and I look forward to participating in your subsequent homework tasks.
To the attention of professor @dilchamo.
Thank You.