DApps

DApps, or decentralized applications, are applications that run on a P2P network of computers rather than a single computer. These applications exist on a blockchain, which is a decentralized platform that supports the DApp.

The characteristics of DApps include:

1. Open Source: Ideally, the application should be governed by autonomy, and all changes should be decided by consensus, or a majority of users. Its codebase should be available for scrutiny.
2. Decentralized: All records of the application’s operation should be stored on a public and decentralized blockchain.
3. Incentive: Validators of the blockchain should be incentivized by rewarding them with cryptographic tokens.
4. Algorithm/Protocol: The application community should agree on a cryptographic algorithm to show proof of value.
5. No Central Point of Failure: DApps are typically immune to single points of failure. If one computer goes down, it won’t affect the network or application.

The motivation behind DApps is to create a model where no central authority has control, thereby increasing transparency and reducing the risk of censorship. The users maintain control of their own data, and the application functions by consensus. This is significantly different from traditional applications which are controlled by a single entity.

DApps can be developed on various blockchain platforms such as Ethereum, Tron, EOS, etc., each with its unique coding requirements and capabilities. The most commonly used platform is Ethereum, which uses a coding language called Solidity. The majority of DApps are currently related to finance and are often known as DeFi, or Decentralized Finance, applications.