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Ethereum Dapps: All you need to know before using

  • Unlike any other digital app found on a smartphone or a laptop with the added feature of employing blockchain technology, Dapps keep the user’s data secure from the organizations behind it

What is Ethereum DApp?

In the crypto-verse, a lot of attention is paid to Bitcoin. But don’t let that overshadow the rising interest in Ethereum, which is transforming the way we think of applications. So what is DApp? A DApp, or decentralized application, is a software application that runs on a distributed network. The difference is that it’s not hosted on a centralized server but instead on a decentralized peer-to-peer network. That’s just the shorter version, we have a lot to learn here. With this article, we will dive into the world of DApps, more precisely, those built on the Ethereum protocol.   

What is Ethereum? 

When we hear Ethereum, we typically only associate it with cryptocurrency. While that characterization isn’t entirely incorrect- it’s essential to understand that Ethereum is much more than just a simple cryptocurrency. It is an open-software platform built on blockchain technology that allows developers to build and deploy decentralized applications. Now, other protocols are used to build DApps, like EOS, Stellar, NEO, Tron, and Cardano, but Ethereum is on top. 

Ethereum is a network protocol that allows users to create and run smart contracts over a decentralized network. A smart contract contains a code that runs specific functions and interacts with other smart contracts written by a developer. While bitcoin stores a number, and Ethereum stores executable code. 

Why Ethereum? 

Because Ethereum removes the need for the third party to handle transactions between peers. Since the middle man gets replaced by code, other costs reduce, including time and effort. Just how Bitcoin eliminates the need for someone to hold the money, Ethereum eliminates the need for someone to broker the deal. Ethereum has been the prevalent host for DApps so far. At its premise, one of the main goals of the network was to make the process of creating DApps easier.

Now the question is, where all these smart contracts are? They get hosted on multiple computer nodes all over the globe. These nodes comprise all the information of the world’s smart contracts, including codes, transactions, and more. They are working round the clock to keep the information up to date, so they all have the exact copy. This is how smart contracts and cryptocurrencies decentralize in general. Since all the nodes have the same information and are laid out worldwide, removing a node won’t hinder the execution of any smart contract.

What is a DApp?

A decentralized application or DApp is like any other digital app found on a smartphone or a laptop with the added feature of employing blockchain technology to keep the user’s data secure from the organizations behind it. Just as cryptocurrency is decentralized money, DApps are decentralized apps. The blockchain helps store copies of its expanding data on several participating computers called nodes.

These computers are not owned by the creators of DApp but by their users. DApp users may feel more secure knowing that the creators of the applications cannot control how it is used- at least not in a traditional sense. For example, the creator of a social network DApp has no control over removing a post or excluding a user. Another upside is that they cannot sell the users’ data to other entities because DApps run autonomously once launched. You are thinking, how is this possible? It is all down to the use of smart contracts - computer programs that are present and deployed on a blockchain designed to execute the rules of a contract without any need for human participation. For instance, a smart contract could be coded to issue a loan once a user deposits enough security into it. DApps are also usually open source, so anyone can view and use the underlying code. 

When someone is creating their Ethereum smart contracts, they are writing a piece of backend code for their DApp. While their DApp can have a user interface of a traditional app, all or some part of the backend is built with the Ethereum DApp development. DApps are as diverse as conventional apps; they can provide social networks, entertainment, games, productivity tools, and more. Most are designed to help consumers access Decentralized financial services or DeFi. The development of DApps is another step toward the future of the internet, referred to as Web 3.0 .

Ethereum DApp development- a cornerstone for Web 3.0

Since the onset of the internet, the amount of information and human interaction has been at its peak. We’re able to create and consume information at near infinite levels. But the ability to control this information has become centralized with time. This contains information about your social life,  health, finances, and more. Those who own and manage this information are the ultimate owners of the information, which they can use to their will. 

They act as middlemen that hold your information on their centralized servers so they can provide you with services like storing your money, hosting your website, connecting with family and friends, etc. And with a few clicks, they can remove you entirely from accessing this information and all related services. Fortunately, Web 3.0 changes all that, and Ethereum DApp development plays a crucial role. Web 3.0 dabbles with a lot of things but at its core is a technology based on decentralization. 

By decentralizing information and services, large companies and governments won’t be able to control internet users through monopolistic and dictatorial methods. Ethereum DApp development, with the ability to decentralize services and information, gives Web 3.0 a platform to deliver a completely free and accessible internet for everyone. There will no longer be a central authority to control because no middlemen are present to expedite the flow of information and services. 

Using a DApp

Gaming DApp
There are thousands of DApps out there, but let's start with gaming DApp as they are the most prevalent. A quick search on the internet showed that Axie Infinity was the top Ethereum game, confirmed by 24,310 users. To play you have to buy Axies - whimsical creatures that battle, breed, and trade with your Ethereum on behalf of the players. One can build a collection of these Axies and also buy upgrades and extras throughout the game, just like any other traditional role-playing game. 

But unlike traditional video games, most gaming DApps provide complete control over their in-game assets to players. They also let players monetize certain items outside of the game. For instance, in Axie Infinity, features, game characters, virtual land, and gaming items are monetized as NFTs

DeFi and DEXs
Traditional finance depends on financial institutions to act as middlemen. Using DApps, everyone can utilize financial services without any central authority and continue complete control of their assets. DeFi can also benefit low-income individuals, offering them access to a wide range of financial services at significantly lower costs. Decentralized exchanges (DEXs) are another vital example of financial DApps. These platforms facilitate peer-to-peer trading by removing intermediaries like centralized crypto exchanges. Users do not have to give up control of their funds. Instead of transferring their assets into an exchange,  they can trade with another user directly with the help of smart contracts.   

DApps can entrust users to play a prominent role in the governance of online organizations by presenting a more community-centric decision-making mechanism. Using smart contracts, users that hold governance tokens of a specific blockchain project can create proposals for the community to vote on and cast their vote on others’ proposals anonymously. 

Entertainment will always be a vital part of our lives. With DApps, daily activities that people like to do are getting transformed into digital experiences that can also yield economic activities. For instance, Audius, a blockchain-based decentralized music streaming platform, eliminates the intermediaries that exist in the traditional music industry to connect artists and fans. DApps are also handling issues users face on social media platforms. Centralized social media giants like Facebook and Twitter often get criticized for censoring posts and mismanaging users’ data. With decentralized social DApps like Steemit, the community can interact easily and express their opinions with fewer restrictions and censorship while appreciating better control of their personal information. 

How can we help 

Since the rise of Bitcoin, the Crypto space has seen massive growth. DApps are expanding the functionality of the Web by enhancing regular applications with blockchain technology. Decentralized applications could bring even more creative use cases to the market in the future. A decentralized development can increase transaction volume, drive more customers to the company, and even reduce costs with accounting. 

Evon technologies, our software development company in India, helps you accomplish these use cases. We offer a complete development cycle for decentralized applications (DApps). Our expert team of DApp developers will help you develop a DApp with blockchain technology to unlock tangible outcomes for your business and potential users. Get started and contact us or email at This email address is being protected from spambots. You need JavaScript enabled to view it. if you are looking to take your first steps toward Ethereum DApp development.

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