What is a DApp (Decentralized App)?

3 min readJul 18, 2022

Hey Newbies,

Let’s learn about DApps! Applications that operate on a blockchain are referred to as DApps (Decentralized Applications). Due to their wide definition, these apps can be identified according to certain features they possess.

  • DApps are Open Source: Anybody can access the source code since it’s available to the public to verify, use, copy, or alter.
  • Decentralized: DApps are not under the jurisdiction of a single person or authority for they operate on blockchain networks that are managed and maintained by multiple users or nodes.
  • Cryptographically Secure: All the data in a cryptography-protected app is maintained in a public blockchain, which means the absence of a single point of failure, that is a centralized server.

Why are DApps Important?

DApps try to solve issues faced by users of regular legacy apps that have a centralized architecture. The latter stores and maintains data on servers controlled by a single party. This renders them vulnerable to technical issues and attacks.

Hacking or compromising a centralized server may lead to the failure of the entire application network, leaving it permanently or temporarily damaged. A hacked centralized server may bring the application’s whole network down, rendering it useless momentarily or permanently. Aside from that, centralized systems are frequently subjected to data leakage or theft, putting businesses and users at risk.

DApps come in a wide range of forms and uses. Gaming, social media, cryptocurrency wallets, and decentralized finance (DeFi) applications are just a few examples. DApps also power their activity by digital tokens from smart contracts forming the tokenized system. Tokens can either be unique to a DApp or to the native blockchain that hosts it.

For instance, the $UNI token is used on UniSwap while EmiSwap uses $ESW, a governance token that allocates all holders 0.05% of the daily transaction volume on the decentralized exchange and makes them eligible to vote on the future of EmiSwap. It is also used as compensation for ETH gas spent while using the DApps on Ethereum. Learn more about the benefits of hodling ESW here.

DApp Pros

  • User privacy: DApps do not need users to reveal real identities to build or interact with them. Information about users is maintained in a shared database over which no authority has control. Only the user can decode the information.
  • Costs: DApps can be more cost-effective since they operate without the need for a middleman to benefit from transactions.
  • Content guidelines: DApps cannot be censored by a central authority. The ability to submit transactions, build DApps, and read data from the blockchain cannot be restricted. As a result, users are responsible for any legal or regulatory ramifications associated with the material they post or consume.

DApp Cons

  • Difficult to maintain: Once a DApp code has been put on a blockchain, it cannot be removed or modified, making it difficult for developers to make updates or correct issues.
  • Difficult KYC process: Verifying client identities is difficult since users are not required to disclose genuine identities to deploy or engage with DApps.
  • Network Congestion: Current DApp networks can handle 10–15 transactions per second due to network congestion. When a single DApp consumes too many computing resources, the network as a whole becomes overloaded.

DApp Prospects

After Bitcoin, Ethereum has become the dApp ecosystem’s main growth driver, due to employing the use of smart contracts, disrupting the network, and maintaining a user base. As the DeFi market tackles more use cases, DApps deploy user interfaces that mimic traditional web apps to attract new audiences while gaining access to the blockchain’s unique features, thus making the internet more functional through blockchain.

DApps are gaining traction quickly — and it’s only the beginning. Financial transactions, gaming, online shopping, and social media platforms are all likely to become blockchain-based dApps as blockchain continues to grow at a rapid rate.

To sum it up, DApps are open-source apps that operate on a blockchain network. These networks offer transparency, decentralization, and resistance to attacks, as a result of their distributed structure. Join our global decentralized community to learn more about the EmiSwap AMM DEX and never miss an update:

Website: https://emiswap.com/#/pool

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GitHub: https://github.com/EMISWAP-COM/




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