Decentralized Applications (dApps)_ Examples, Advantages, and Disadvantages

1. Decentralized Applications (dApps): Examples, Advantages, and Disadvantages Intensive decentralization is practiced with the aid of blockchain technology. A decentralized or distributed application does not run on a single server but instead utilizes the excess processing power of thousands of computers worldwide and is controlled by business automation software that ensures a function can only be executed if a specific parameter is met. Note, however, that decentralized applications need not run on a blockchain network; they can also run on a special type of peer-to-peer (P2P) network

2. that is not a blockchain. Tor, BitTorrent, Popcorn Time, and BitMessage are decentralized applications that function on a P2P web. Let's understand the meaning of decentralized applications and simplify the concept for you. What are Decentralized applications? Decentralized applications are software that interacts with the blockchain, which records the status of each network participant. Today, the user interface of decentralized applications is identical to that of any other website or mobile application. A smart contract represents the core logic of a decentralized application. Smart contracts are blockchain components that process data from external sensors or events and aid in managing the state of all network actors. Typically, they're used to automate the execution of a contract so that all parties can know the outcome immediately, without the need for intermediaries or time-wasting delays. In addition, they can automate a workflow by initiating the subsequent step when certain conditions are met. The front of a decentralized application represents the user interface, while the backend represents the business logic. One or more smart contracts that interact with the blockchain represent this business logic.

3. Photos, videos, and audio files could be stored on decentralized storage networks like Swarm or IPFS, which could also host the front end. Traditional Web applications render a webpage using HTML, CSS, javascript, or a similar language. This page communicates with a centralized database containing all data. A traditional webpage will use an API to process your data and other necessary information stored on their servers to display it on the page. This is the primary distinction between centralized and decentralized applications. Low-security user IDs and passwords are used for identification and authentication because personalized data is stored on the service provider's server. Decentralized vs. Centralized applications: One company owns a centralized application. The application software of a centralized app is stored on one or more company-controlled servers. As a user, you will interact with the application by downloading it and then sending and receiving data from the company's server. A blockchain or peer-to-peer computer network is utilized to run a decentralized application. The user will pay the developer a cryptocurrency fee to download and use the program's source code. A smart contract is a

4. source code that enables users to conduct transactions without disclosing personal data. Top 7 dApps: Bitcoin was the first decentralized application, allowing anyone in the world to download open-source code, join a blockchain network, and verify transactions using a mining algorithm in exchange for digital currency. Depending on the blockchain platform, dApps are used by a small and large blockchain dApp development company to track and trace goods as they travel the globe and to enable cross-border financial transactions without the need for an intermediary such as a central bank or clearinghouse. Here are the top dApps available in the market: 1. Brave: Brave, a web browser with nearly 9 million active users, has recently emerged as a formidable competitor to Chrome. Brave is attempting to flip the online advertising model by putting consumers in the driver's seat. The app creates a new value metric in advertising, where "consumer attention" is valued more than unverified page views or clicks. Brave has received more attention than most alternative browsers, partly because one of its co-founders was a key figure in the

5. development of Mozilla's Firefox and partly because of its unusual — and some would say parasitic — business model. The browser's developer, Brave Software, is one of the more recent entrants in the browser wars, having debuted the browser in January 2016. After leaving Mozilla, Brendan Eich, the creator of JavaScript and a co-founder of Mozilla, co-founded the company. Chromium, an open-source project maintained by Google and others, serves as the foundation for Brave. Brave utilizes Chrome's backend technologies, such as the Blink rendering engine and the V8 JavaScript engine. 2. Golem: Golem is a decentralized application (DApp) that aims to establish a global market for surplus computing power. The project's objective is to create a supercomputer that can be rented by anyone, anywhere in the world, by combining the power of PCs and data centers. Instead of relying on a centralized server farm, the initiative distributes the computational load among "Providers" willing to rent their computers for computing time. In exchange for GNT tokens, these suppliers can offer their resources. The project has great potential because it allows for the decentralization of the

6. rendering process, which is much faster and cheaper than centralized solutions. 3. TRACEDonate: Regarding charitable contributions, the "donation sector" lacks transparency and accountability. TRACEDonate's identity management platform enables transparent and traceable cross-border remittances and donations. The dApp created by AID: Tech connects charitable organizations, donors, and recipients. According to Piekarska-Geater, the organization hopes to provide donors with peace of mind by ensuring that their donations are used for the intended purposes, such as purchasing food or utilities rather than alcohol, by those in need. Using blockchain, the identity of the charitable organization and the recipient of a donation is verified. Because the funds are stored in an online digital wallet, the donor can monitor how the money is spent. Donors can also specify how the funds will be used, such as for medical aid, food, or other emergency supplies. 4. Circulor: Circulor is one of the most widely used applications for decentralized supply chain traceability in the electric vehicle and electronics industries. It proves that the raw materials used in the latter's

7. production were ethically and sustainably sourced. Circulor is a track-and-trace platform that enables users to secure deliveries, manage payments, and verify the origin of raw materials, among other things. Circulor is designed to handle the complexities of the real world. Dapps have emerged with distinctive properties that enable stakeholders to invest in developing decentralized applications, giving them the potential to become self-sustaining resources. Based on their popularity, DApps for various purposes, such as payments, storage, and cloud computing, are anticipated to outnumber traditional apps eventually. As Blockchain becomes indispensable, numerous existing methods will become obsolete. Although it may seem implausible now, services such as banking will soon adopt Blockchain and operate on trustless, self-sufficient, and decentralized networks. Large corporations strive in this direction to secure their position within the Blockchain ecosystem. 5. Aragon: Aragon is a significant addition to the DApps collection. It is possible to create and manage decentralized organizations on the Ethereum Blockchain-based platform. The Aragon Foundation administers the Aragon open-source project.

8. The project's objective is to eliminate the need for human commerce by enabling individuals to manage entire businesses and organizations using the Ethereum Blockchain. Individuals can use the platform to establish and manage decentralized autonomous organizations (DAOs). ANT, the platform's token, grants voting rights for future product development decisions. Any organization, business, non-profit, or foundation can utilize the DAO model developed by Aragon. It is anticipated to increase the transparency and effectiveness of governance in such organizations. Aragon also helps to eliminate unnecessary third parties by replacing them with smart contracts based on the Ethereum blockchain. By removing geographical barriers and bureaucracy, the program promises to create an incredibly simple digital jurisdiction for everyone. 6. KYC-Chain: Businesses use his app to verify customer identities and streamline the onboarding process by KYC regulations. Through partner sanctions and watchlists database spanning over 240 countries, it can ascertain individuals, corporations, and institutions for criminal or prohibited activities in real-time. KYC-Chain enables users to store their certified identity details on-chain and control public access to their credentials by offering public keys when a permit is required, courtesy of a self-sovereign identity dApp developed by SelfKey, a partner company.

9. Users can pay for individual services such as accredited investor checks, crypto funds screening, ID verification, and document authentication through the decentralized application. Users can use the service to compare client crypto wallet spending to known risk indicators and comply with anti-money laundering regulations. 7. Prism: Prism is an initiative of ShapeShift built on the Ethereum Blockchain. It is a decentralized and unreliable market for asset portfolios. It creates bespoke market portfolio management tools using executable distributed code contracts, or EDCCs. Prism enables anyone to invest in other cryptocurrencies. Prism eliminates the need for third parties and the time-intensive maintenance of multiple private keys and wallets. Because the project is built on Ethereum smart contracts, it is unnecessary to remember multiple exchange passwords and keys. In addition, it features an interactive user interface that displays an individual's investment portfolio in real time and keeps track of everything. Here are some of the advantages of decentralized apps: 1. The program's core is dApps' capacity to safeguard user privacy. To use the app's features, users of decentralized apps are not required to submit personal information.

10. 2. DApps use smart contracts to facilitate transactions between two anonymous parties without requiring a central authority. 3. According to proponents of free speech, dApps can be designed as alternative social media platforms. A decentralized social media platform would be impervious to censorship because no single participant on the blockchain could delete or prevent the posting of messages. 4. Ethereum is a flexible platform for developing new dApps, allowing developers to concentrate their efforts on discovering novel uses for digital applications. This could expedite the deployment of dApps across multiple industries, including banking and finance, gaming, social media, and online shopping. Disadvantages of Decentralized applications: Here are the disadvantages of decentralized applications: ● As decentralized applications are still in their infancy, it is experimental and subject to several unknowns. There are concerns regarding the scalability of applications, particularly if an application requires a large number of computations and causes network congestion by overloading a network. ● Another concern is the ability to design a user-friendly interface. Most users of traditional centralized institution-developed apps anticipate a level of usability that encourages them to utilize and interact with the app. To convince users to switch to decentralized

11. applications (dApps), developers must create an end-user experience and performance comparable to that of well-known and established programs. ● Another limitation of decentralized applications is the difficulty of modifying code. A deployed dApp will almost certainly necessitate ongoing modifications, either to improve or fix bugs or security risks. According to Ethereum, it may be difficult for developers to make necessary updates to dApps because data and code published to the blockchain are difficult to modify.