Descentralised Applications (dApps)
A dApp is a type of application that does not rely on control points or central servers to function, but rather operates on a decentralized network.
What does it mean? It is built on a decentralized network, such as a blockchain, using smart contracts, which are autonomous and self-executing programs, to automate the processes of the operations carried out in the application.
Differences between dApps and traditional centralised applicationsTo better understand the concept of dApps, let’s look at several examples
In a standard chauffeur-driven car hire application, a company controls and manages the network and contacts between drivers and passengers. It is the intermediary.
In contrast, in the same application, but decentralised, drivers and users could connect directly through a blockchain network, without the need for a centralized entity to manage them. Smart contracts would be responsible for managing payments and evaluating drivers and users.
Another example of a traditional centralized application could be a social network. In this case, user data is stored on the company's servers and controlled by the company. The company can decide what content is displayed on the platform, who can see it and who cannot, and can modify user data as necessary.
What is the origin of dApps?The first dApp to be created was Bitcoin. Since then, numerous dApps have been created on different blockchain networks. These dApps can be used for a wide variety of purposes, from online gaming and entertainment to e-commerce.
Different types of classification of dApps
There are several ways to classify dApps and these are some of the most common:
- Depending on its architecture: dApps can be classified as decentralised applications such as Bitcoin and Ethereum, or hybrid applications, which have decentralised and centralised components.
- Depending on its purpose: for example, decentralised finance dApps for games, digital identity, or social media, among others.
- Según su tipo de blockchain: such as dApps on Ethereum, dApps on EOS, among others.
- Depending on its permission level: they can be classified as open permission level dApps, in which anyone can join and participate in the network (Bitcoin, Ethereum), or restricted permission level dApps, in which authorisation is required to join and participate in the network.
- Depending on its economic model: dApps can be classified according to their economic model, such as dApps with a tokenisation model, dApps with a subscription model, dApps with an dvertising model, among others.
Limitations of dApps
Decentralized applications (dApps) have some significant limitations, including:
- Scalability: Blockchain-based dApps can be slow and limited in terms of processing and storage capacity, which hinders their scalability. Blockchain transactions can also be expensive, limiting the ability of dApps to handle large numbers of transactions.
- User interface: dApps can be difficult to use and navigate for the average user. The interface can be confusing and unintuitive compared to traditional centralised applications.
- Dependence on the blockchain: dApps rely on blockchain technology to function, which means that if there is a problem with the underlying blockchain, there may also be problems with the dApp.
- Lack of specific regulation: Currently, the lack of specific regulation can cause problems for users, as they may find themselves with a lower level of protection against possible cases of fraud. However, regulations are evolving with the aim of ensuring an adequate level of protection for users of this type of decentralised applications.
- Lack of technological maturality: blockchain technology and dApps are still in the early stages of development and may be susceptible to bugs and vulnerabilities. This can create risks for users and limit the adoption of dApps.