What is a Decentralised Application?
Now decentralised applications have entered the industry, they are making many headlines. A decentralised application (dApp) as described on BlockchainHub, is an application that runs on a whole network of computers Peer-2-Peer (P2P). The dApp is programmed to run on the internet without any control from a central authority.
Bitcoin is a popular emerging dApp which has led innovation of the technology. It is an open-source protocol that operates autonomously with no single central authority controlling most of the tokens. Selling Bitcoin through BC Bitcoin will be subject to the network’s consensus and cannot deviate from the protocol. Though a dApp will have set parameters, it should be able to adapt and innovate under the consensus of the network.
DApps work in a similar way to conventional web applications. Both have a front end that is viewable by customers, but the backend is different. A traditional website’s front end will request information through an API to a database. A dApp will feed a request such as to sell Bitcoin from the front end to a smart contract that will autonomously pull information from the blockchain. The transaction to sell Bitcoin will also be recorded permanently on the immutable ledger.
A traditional website will run the backend code on a centralised server whereas the backend code to a dApp runs on a P2P network. The application’s data and records of a dApp must be cryptographically stored in a public blockchain for security. The application must also use a cryptographic token native to the system.
Though a dApp can be used to safely sell cryptocurrency, processing and logging financial transactions and data is not its only use. dApps can also be used for data processing, file storage, Identity & Reputation and governance such as online voting.
As companies further develop their dApp we are certain to see more diverse applications as businesses incorporate it with traditional systems for security and efficiency. We are yet to realise the full potential dApps can bring.
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