Decentralized tech has made the technical world more upsetting, and it’s not because of their hard-to-get concepts, but because of their name conventions that confuse normal people.
Dapps are among those decentralized techs which are confusing to even business professionals. Still, the fact is Dapps are beneficial to businesses in a number of ways. Today a business can hire a Dapp development company to get their solutions decentralized in weeks.
And it promises long-standing benefits with a rich feature that makes users stick to a particular business need. This article sheds light on the term Dapps and mentions some of its benefits, use cases, and adoption to justify whether it actually makes sense in business.
So let’s get things going.
Apps and Dapps
When mobile platforms started dominating the world, applications made their way to users giving access to important services at a single click. Such as ordering any item from the comfort of their home.
An app is software that could be installed on a handled mobile platform to access its services and fulfill some tasks. Most of these have similar functionalities such as a login system to let users configure apps based on their preferences, and a payment gateway governed by a financial body/institution to make transactions.
The only thing here to remember is that traditional apps operate via a single server with some security protocols.
Fast forward to 2016, when Ethereum emerged as a revolutionary blockchain the first Dapp made its way to the world of decentralized systems.
Dapp is nothing but a combination of two terminologies, D stands for decentralized, and the rest is the app- an application that possesses decentralized characteristics, hence the name D-Apps.
These however operate over a network of computers, data centers, and servers to reduce downtime with nearly impossible-to-breach security protocols. With such and other benefits few companies have started to master the nuances of decentralized app development services and have emerged as a decentralized solution provider.
A Dapp and Its Characteristics
A Dapp is a revolution in decentralized systems with the potential to uplift users’ data privacy. A Dapp stands out from a traditional app in a number of ways, mostly by the characteristics it possesses.
A Dapp possesses the following characteristics
- Open source build and network peers to implement changes
- Token generation with consensus mechanism such as proof of stake
- A token (cryptocurrency) to use apps and reward the users involved in Dapp’s ecosystem
- It must not have a governing party, it should be decentralized to reduce downtime
- Record transactions must be public.
Apps Vs Dapps
Software applications whether mobile-based, web-based, or desktop based have dominated for years and this trend is still intact with future technologies to secure long-term service.
Microsoft lost the war of smartphones just because it didn’t support and had many applications to provide users with specific services. This is how crucial apps are crucial in our world.
But there are a few downsides to the traditional app technology, let’s compare both for a clear idea.
For example, social apps; infamous for their user privacy, user account removal, and data breaches. These points are still considered a common issue today which puts users and their data at risk.
In contrast, Dapps are decentralized over a network of computers- no central authority controls their functioning which results in flawless functioning and clear of all vulnerabilities preventing any attacker from getting a hold of users’ personal info and data.
Moreover, traditional apps require all middle entities such as banks, institutions, and central governing authorities to complete transactions or any other tasks, and it takes time to complete the process; it may even fail due to technical intricacies or any other biased reasons.
Whereas Dapps does not depend on any third party or central body to complete tasks, it relies on its resilient smart contract that automates the process when defined conditions in the contract are met.
Another thing is that traditional apps require a ton of personal details to get hold of their offered services, name, gender, bank details, identification, etc. which can get stolen and sold for advertisement purposes. In contrast, Dapps doesn’t require any personal details to opt for any of its services, Dapps such as OpenSea and UniSwap lets users log in using a cryptocurrency wallet.
Why Should Businesses Consider Dapps?
Decentralized solutions are built with concepts like cryptographic hashes, layers of encryptions, blockchain infrastructure, etc., and the sole purpose of these concepts is to build solutions that guarantee robust privacy, unbreakable security, automated operations, and pseudo-anonymity.
And Dapps is no exception to these, it gives both users and businesses the things they need to improve their overall usability and operations.
Some Prime Benefits of Dapps To Business
Costs Cuts
Dapps automates processes at all levels, eliminating the dependency on intermediate parties like banks, and institutions that take a fair cut to permit transactions or to perform tasks. By avoiding the dependency Dapps allows businesses not to waste extra on these entities and proceed with their operations flawlessly, saving huge chunks of money.
Reach To Unexplored Territories
Dapps run on a network of services that gives businesses decentralized pseudo-anonymity making it hard for governments to track their operations and put a halt to or completely ban companies from their country. Hence businesses with the help of Dapps get to expand their market without worrying about pressure from any government.
Greater Data Security
Cybersecurity is the most evident challenge for businesses as cybercriminals try different techniques to steal info worth millions. In such cases, they have to ensure they are using top-of-the-line security implementation to safeguard their critical details and clients’ information to avoid any possible loss.
Dapps operate over a distributed network of computer nodes, if a hacker wants to steal info then he has to hijack all the connected network devices which is nearly impossible, hence using Dapps over traditional solutions makes sense as hijackers may find a new way to steal info with some existing vulnerabilities.
These benefits have forced many to adapt to decentralized solutions and make greater use of Dapps for business operations. To get more ideas let’s take a look at some of its real-world use cases
Dapps and Their Real-World Use Cases
The Dapps became widespread when a Dapp game crypto kitties gained worldwide attention. From there Dapps popularity spiked and soon it was used by many different domains to advance their business operations and overall functioning.
Decentralized Finance
Decentralized Finance (DeFi) is a newly emerging term that aims to revolutionize finance technology and improve finance operations in a multitude of domains.
Traditional finance operates by relying on different intermediates bodies such as financial institutions and others to make transactions, lend money, and others. DeFi eliminates all these middle parties and introduces total automated operations for easier finance operations.
DeFi platform can provide similar benefits that of today’s finance with a hassle-less experience from all ends, and these include
- Assets and derivative trending
- Market predictions
- Automatic transactions and contract settlement
- Reserve banking
- Lending
DeFi could change the landscape of finance, for instance, it can be used by insurance firms to automate policy claims by programming the smart contract with certain conditions. This could reduce the friction in critical times of policy claims to save lives at stake and provide customers with a smooth experience.
Cloud Storage
Businesses rely on different types of cloud storage platforms to get access to their data on the cloud. Google Cloud and Dropbox are among the big players which offer cloud storage, however, as the data is stored on a single server there is a possibility of losing data due to vulnerabilities and other lower-safety protocol implementations. This could lead to data breach causing a company to lose millions in a day.
Decentralized clouConsider hiring a security token specialist to guarantee that you don’t run across all of these concerns.
STO advisers or consultants are knowledgeable individuals who can walk you through the processes required to create a STO. Look for a team of professionals that can assist you not only with advice but also with end-to-end STO launch services.
With an adviser or specialists at your disposal, you will be able to provide significant value to the business.
Though ICOs have assisted businesses in raising millions of dollars, they have always lacked regulated procedures and security. As a result, the security token offering circumvents this issue by adhering to regulatory requirements.
This is the definitive launch sto guide. STO is aimed for inventors and entrepreneurs who wish to launch a business.
d storage is built on a decentralized platform blockchain which is nearly impossible to break into and steal data because of its wide network of servers and clouds that divides data into chunks and spreads it across the network.
This makes it hard for cybercriminals to get a hold of businesses and their data for any malicious activity. FileCoin, MaidSafe, and StorJ are some of the decentralized cloud storage platforms for secure data storage.
Here Comes The Downsides
Indeed there are a few compromises to Dapps that a business should consider before making use of it, let’s look at each.
Harder Maintenance
When it comes to maintenance Dapps are the worst, because even if a developer changes some of its codes it needs to be implemented by each peer on the network, which is really hard.
Scalability Concerns
Traditional apps are built over an MVP or trial product and are improved time after time with new functionalities on top of it, which makes them easy to scale. Dapps however, are not so easy due to their complexities and dependency on the distributed network.
Not the Most Ideal Performance
Traditional apps use a single server that can process any demand instantly and provide the most optimal performance. It’s not possible when it comes to Dapps, because of the dependency it has on the distributed ledger and the complex architecture it possesses.
One more thing that slows down its performance is the blockchain and consensus mechanism they use as these verify transactions with a minting process. Most blockchains can handle 10 to 20 complex transactions per second, more than this and it will slow down drastically.
Final Words
Dapps are not for every business, rather those who only require such as finance can take full advantage to streamline their operations.
Indeed its revolutionizing technology that eliminates the dependency on intermediate parties and automates task execution to simplify business operations, but when adapting to this volatile technology a company should always work on its requirement to understand whether this is the solution they need. That being said, rapid advancements in Dapps will force various sectors to opt for its agile functionalities that serve a multitude of benefits.
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