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Crypto Dapps

Crypto Dapps

Decentralized Applications

Decentralized applications (dApps) are digital programmes or applications that run on a blockchain or peer-to-peer (P2P) network of computers rather than on a single computer. DApps (also known as “dapps“) exist outside of the control and jurisdiction of a single authority. DApps, which are frequently constructed on the Ethereum platform, can be used for a wide range of applications, including gaming, finance, and social media.


Key Takeaways

Decentralized applications, commonly referred to as “dApps” or “dapps,” are computer programmes that run on a blockchain network of computers rather than on a single computer.
Decentralized applications are free of the control and influence of a single authority since they are decentralised.
The protection of user privacy, the lack of censorship, and the development freedom are all advantages of dApps.
The possible inability to grow, the difficulties in establishing a user interface, and the difficulty in making code adjustments are all disadvantages.

Understanding Decentralized Applications (dApps)

A normal web app, such as Uber or Twitter, runs on a computer system owned and maintained by a company, allowing them complete control over the app and its functionality. On one side, there may be several users, but the backend is managed by a single entity.

DApps can run on either a peer-to-peer (P2P) or a blockchain network. BitTorrent, Tor, and Popcorn Time, for example, are software that run on computers that are part of a peer-to-peer (P2P) network, where numerous participants are consuming, feeding, or seeding content, or doing both roles at the same time.

In the context of cryptocurrencies, decentralised applications (dApps) run on a blockchain network in a public, open-source, decentralised environment, free of any single authority’s control or interference. A developer, for example, could design a Twitter-like dApp and deploy it on a blockchain, allowing any user to post messages. No one, including the app’s makers, can delete the messages once they’ve been uploaded.

Advantages and Disadvantages of dApps

Many of the benefits of dApps are related to the program’s ability to protect user privacy. Users of decentralised apps do not have to provide personal information in order to access the app’s features. Smart contracts are used in DApps to complete transactions between two anonymous individuals without relying on a central authority.

dApps can be developed as alternative social media platforms, according to proponents of free expression. Because no single participant on the blockchain can delete or block messages from being posted, a decentralised social media site would be impervious to censorship.

Ethereum is a flexible platform for creating new crypto dApps, providing the infrastructure needed for developers to focus their efforts on finding innovative uses for digital applications. This could enable rapid deployment of dApps in a variety of industries including banking and finance, gaming, social media, and online shopping.

American cryptographer and computer scientist Nick Szabo introduced the term “smart contract” in 1996 as a graduate student at the University of Washington.1


Because the use of crypto dApps is still in its early phases, it is experimental and subject to a variety of issues and unknowns. There are concerns about the applications’ ability to scale successfully, particularly if an app requires a lot of computations and overloads a network, producing network congestion.

Another challenge is the capacity to create a user-friendly interface. Most users of traditional centralised institution-developed apps have an expectation of ease-of-use that motivates them to utilise and interact with the app. To persuade people to switch to crypto dApps, developers will need to deliver an end-user experience and degree of performance that rivals that of well-known and established programmes.

The challenge of doing code modifications is another limitation of dApps. Once deployed, a dApp will likely need ongoing changes for the purposes of making enhancements or to correct bugs or security risks. According to Ethereum, it can be challenging for developers to make needed updates to dApps because the data and code published to the blockchain are hard to modify.


Promotes user privacy
Resists censorship
Flexible platform enables dApp development


Experimental, may not be able to scale
Challenges in developing a user-friendly interface
Difficult to make needed code modifications

What Are Ethereum dApps?

These are decentralized applications that are powered and developed using the Ethereum platform. Ethereum dApps use smart contracts for their logic. They are deployed on the Ethereum network and use the platform’s blockchain for data storage.

What Is the Difference Between a Centralized and Decentralized App?

A centralized app is owned by a single company. The application software for a centralized app resides on one or more servers controlled by the company. As a user, you’ll interact with the app by downloading a copy of the app and then sending and receiving data back and forth from the company’s server.

A decentralized app (also known as a dApp or dapp) operates on a blockchain or peer-to-peer network of computers. It enables users to engage in transactions directly with one another as opposed to relying on a central authority. The user of a dApp will pay the developer an amount of cryptocurrency to download and use the program’s source code. The source code is known as a smart contract, which allows users to complete transactions without revealing personal information.