Blockchain technology got famous due to the rise of BitCoin and several applications of this technology started becoming visible. The blockchain is a distributed technology where there is no single entity which controls the network and works on the built-in mechanisms to keep the network secure and truly decentralized. This also gave rise to a concept called DApps – Decentralized Applications
What is DApps?
Decentralized Applications i.e. DApps (pronounced as “DeeApps”) are the applications built on distributed technology like blockchain where the application resides on several nodes on the network but no single entity owns or controls them. These apps fulfill following criteria:
- Open-source: The application needs to be open-source so that anybody can see what the application does. It is essential to building the trust. It also helps in allowing the community to contribute, which in turn helps the app itself.
- Decentralized – the app should work on several nodes across the network. No one entity can shut it down or own the app.
- Incentive – The app should have a built-in mechanism to incentivize the good deeds by contributors such as running nodes or verifying the contributions etc. These incentives are typically in the form of app-specific tokens.
- Algorithm/Protocol – The app has an algorithm or protocol to generate the tokens which are used to incentivize the contributors.
Bitcoin itself is a DApp. Other examples of DApp include Ethereum, SAFE network, project Augur, Storj etc.
You can read about various types of DApps in this excellent article.
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Related Keywords
Blockchain, Cryptography, Proof Of Work, Proof Of Stake, Smart Contracts, Ethereum
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