What are Decentralized Apps(DApps)?

Updated: Feb 22

In today’s world we have various apps which contains code which was created by the company that basically help us interact with them. A Decentralized application(DApps) is created for the same purpose but instead of the code reporting back to the companies servers the DApps will report back to the block chain. To put it formally DApps are digital applications or programs that exist on the block chain or any peer to peer network of computers instead of single computer or database or server. This makes app free from the control and interference of a single authority.

To understand this let us take an example of twitter. It can own all the data about you, it can control what you post and decide what it can do with the data. This is an example of a single authority controlling a centralized app. Contrary to this, a DApps which runs on block chain is open source, public, free from such control. For example if a twitter like DApps is created then no one not even the creators of the DApps can delete anything once it is posted.

One thing of importance here is that DApps can only be build on networks which allows smart contracts(programs which will automatically run on the completion of some task). This means Bitcoin can use DApps but Ethereum can since it allows smart contracts. Allowing the smart contracts removes the middle man and the reason for the central authority. When the conditions are met the code will execute result in transfer of data/money etc.

What are the benefits of DApps?

  • Censorship resistant –

Because of the inherent nature of block chain, DApps are resistant to censorship. This means that DApps are not answerable to government authority, organization or group of people or even the creator of DApps. If smart contract is coded to do something then it will execute itself on meeting the conditions. This is powerful in financial space. Since your money cant be controlled by government or the regulatory authority.

  • No Owner

Once DApps is deployed on the blockchain network it cant be taken down and anyone can use the DApp’s features. Even if the team behind the DApps disbanded, it can still be used. Once on the network it will stay there until the network is down which is very difficult.

  • Anonymous

One more benefit is that it helps the user to be anonymous. You don’t need to share your real world identity to be a part of DApps.

  • Data Security

Data stored on the blockchain is immutable and indisputable, thanks to cryptographic primitives. Malicious actors cannot forge transactions or other data that has already been made public

What are the current limitation of DApps?

  • Maintenance

DApps are harder to maintain because once the code is published it is difficult for developers to make changes to the previous code even if there are bugs and security flaws

  • Performance overhead

There is a huge performance overhead, and scaling is really hard. To achieve the level of security, integrity, transparency, and reliability that Ethereum aspires to, every node runs and stores every transaction. On top of this, proof-of-work takes time as well. A back-of-the-envelope calculation puts the overhead at something like 1,000,000x that of standard computation currently.

  • Network Congestion

Once an app uses too much of the computational resources the entire network gets backed up. Currently the network can only transact 10-15 transactions per second. If transactions are being sent in faster than this, the pool of unconfirmed transactions can quickly balloon.

What are applications of DApps?

  • Decentralized Finance(Defi)

This is the strongest application of DApps. DeFi is currently challenging the traditional way of finance by introducing new ways of borrowing, lending and innovative financial services like liquidity minting, token exchanges.

  • Games

DApps games are picking up popularity. Cryptokitties has been extensively popular and one of the first usecase of DApps games. Crypto kittes is a blockchain based game where players can breed, collect, hold kitties that are generated over Ethereum blockchain. It allowed players to earn money by breeding kitties and then selling them marketplace, trading of kitties.


While blockchain technology still has some growing up to do, there is already a strong case for decentralized apps. And as the technology continues to mature, DApps development will only get bigger, enabling more sophisticated applications to be created and new categories of DApps to emerge. It remains to be seen whether decentralized apps will be able to overtake conventional apps, but it certainly seems that they have a significant role to play in our digital future.





1 view0 comments

Recent Posts

See All