The interest in decentralized applications is constantly growing. It is a trending topic now, just like CBDC and NFT. DApps appeared a long time ago and at first were actually ignored by the cryptocurrency community, but now the situation has changed.
In addition to Bitcoin, which has risen in value dramatically over the past few months, DApps have attracted the attention of the cryptocurrency community. Decentralized applications are dramatically transforming the way a business operates today, and this is very important.
DApps are Decentralized Applications, which represent a new category of blockchain-based applications. DApps applications are decentralized, they are not controlled by anyone's central authority or company. DApps applications use blockchain technology and operate over a peer-to-peer network as opposed to a computer network.
In a peer-to-peer network, information is continuously distributed among its participants, rather than stored on a central server. Although a large, decentralized network suffers from lower speed and performance compared to a central server, the large number of participants makes the peer-to-peer network optimally resilient.
One of the earliest examples of DApps was Bitcoin, which sparked a wave of innovation. Since then, thousands of new DApps have been created. Today, the Ethereum blockchain is the most popular platform for building DApps, supporting almost 2000 such applications.
Among the most widely used Ethereum DApps are decentralized exchanges, cryptocurrency trading applications, and even games. The ability to use smart contracts on the Ethereum blockchain is one of the most important building blocks for DApps.
DApps can have a wide range of functionality that goes beyond the simple transfer of digital currencies. DApps can transfer all types of digital data and have a variety of use cases. These applications are much more powerful than traditional applications.
Many popular programs and related services may become decentralized in the future due to their inherent flexibility, security, and transparency. The only downside to decentralized networks is that they are harder to scale for application use.
While centralized servers, managed and coordinated from a central location, can be easily upgraded for specific uses, the computing power of a decentralized network fluctuates in more than just the number and power of nodes. Power is influenced by many factors. This makes it difficult for developers to predict network capabilities.
As of March 21, 2021, the DApps ecosystem has 3,809 applications with over 145,000 active users. More than 2,000,000 transactions worth more than $ 400,000,000 were carried out in 24 hours.
Most of the decentralized applications are based on Ethereum - 3075, then EOS - 336, and Tron - 71. Ethereum is the undoubted favorite among developers of decentralized applications due to its versatility and flexibility. However, the situation will change when DApps are fully developed on the basis of the Free TON blockchain, after the adoption of the corresponding proposal on the forum.
In total, as of March 21, 2021, out of 3809 decentralized applications:
1. More than 1800 - live/active.
2. More than 1100 - closed/inactive.
3. Are in testing (are in beta tests) - 292.
4. In development - 246.
5. There is a prototype - 178.
6. Broken - 58.
7. Only the concept has been developed - 42.
8. Hidden - 11.
Decentralized applications based on Ethereum are used daily by more than 90,000 active users, EOS - 30,000, Tron - 10,000. In December 2018, there was a surge in the number of new decentralized applications - 172.
This is the highest rate of new decentralized applications in the entire history of this market. as of March 21, 2021. Main events on the DApps market for February 2021:
● BSC (Binance Smart Chain) has overtaken Ethereum in terms of transaction volume and unique active wallets. Blockchain has generated over $ 700 billion in transaction volume.
● Venus, powered by Binance Smart Chain, had $ 400 billion in deals.
● Ethereum posted the largest Total Value Locked (TVL) in February at $ 40 billion.
● The NFT sector has performed the best ever. The top 3 NFT dapps have grown from $ 71 million to $ 342 million. The NBA Top Shot accounted for 67% of the transaction volume.
Ethereum's scalability problems persist, with the result that other solutions (blockchains) have begun to strengthen their position in the market. At the same time, the NFT sector began to show its real potential. Not only well-known projects have achieved record-high sales, but the industry's newcomers have shown impressive results.
Categories/types of DApps
For an application to be considered decentralized, it must be open source and standalone, with no organization controlling most of the application's tokens. The application must be decentralized, and data and records must be stored on a public blockchain.
Decisions to make changes to the DApp are made based on user consensus. Tokens can also be distributed through ICOs.
There are 3 categories/types of DApps:
1. DApps that have their own blockchain.
2. DApps that use other dapps with their own blockchain to function - these DApps are protocols and have their own tokens required to operate.
3. DApps that use protocols of the second type to function, but are also protocols that issue and require tokens.
Users must use tokens to access the application. Validators (miners) are incentivized by rewarding their activities with application tokens. Ethereum is by far the most popular DApp platform and a great example of the first type of DApp.
Other popular platforms of this type are NEO, EOS, and Bitcoin. Many Bitcoin DApps are moving to other platforms like Ethereum due to their faster speed and more flexibility to use. DApps built on top of the Ethereum protocol are examples of the second type of DApps. An example is the 0x protocol, which was built on top of the Ethereum blockchain to support decentralized exchanges.
DApps of the third type are built on top of existing protocols of the second type, and the obvious example is the DDEX decentralized exchange, which runs on the 0x protocol. The question arises whether the development of new DApps can affect the price of Bitcoin or the price of Ethereum. There is no definite answer.
On the one hand, the demand for cryptocurrencies increases the price, on the other hand, pressure on the networks can slow down transaction times and hurt prices. It is unlikely that Bitcoin will have enough DApps that will affect the volume of transactions and the demand for the coin. Due to poor scalability, DApps could migrate to the Free TON blockchain, which has much better scalability.
Now there is no such possibility, but it will appear very soon. The transition of DApps from other blockchains to the Free TON blockchain will greatly affect the value of the TON Crystal token and the popularity of the project. The potential for using DApps is endless.
Virtually all industries can benefit from DApps by enhancing application security, integrating with cryptocurrencies, and without outside interference. A large number of startups unreasonably ignore the benefits and possibilities of decentralized applications.
By developing the ideal environment for DApps, you can take decentralized applications to the next level. Free TON, by the way, can do it.
Benefits of Decentralized Applications (DApps)
The popularity of DApps has grown along with the popularity of cryptocurrencies. Blockchain is as secure as cryptocurrencies (TON Crystal, POLS, SNVT), but the human factor is not safe. Protecting your own cryptocurrencies and tokens requires a thorough understanding of the essence of decentralized systems and the fact that in many respects the security of funds depends solely on a person.
A large number of people do not understand this, so they bypass DApps and refuse to use them in everyday life. However, decentralized applications have far more pros than cons.
For example, open-source - contributes to the broader development of the DApps ecosystem, allowing developers to create much more ideally designed DApps with more useful or interesting features. In fact, decentralized applications have almost the same benefits as blockchains. Below are the obvious benefits of DApps.
Since a decentralized application stores all of its data on the blockchain, once the network is verified, the data is immutable and completely secure. Even the DApp creator himself cannot tamper with any data after it has been added to the blockchain.
This includes financial transactions performed by smart contracts, as well as user data or anything else. The way numerous blockchains discourage cyberattacks is through the Proof of Work or Proof of Stake protocol. Moreover, since applications are decentralized, there is no centralized governing body, so it is very difficult for monopolists, governments, or millionaires to control both the network and the applications themselves.
Because applications rely on smart contracts, DApps do not need an administrative authority to keep them running or serve as the custodian of sensitive data. User data is not stored on a centralized server, which is most often the main target of hackers in centralized applications.
Data is spread across multiple "nodes" or individual client computers that provide the processing power of the network. Thus, even if one node is attacked and compromised, the entire network remains completely protected, since network configurations and all data are protected on the blockchain on other devices, rather than being in one place.
This also means that the company cannot sell or incorrectly process your data - because it is smart contracts that control it, and not the administrators - people.
At the core is blockchain - DApps are made from smart contracts and can easily integrate cryptocurrencies into their work. A decentralized network is more resilient than a centralized server because only a massive cyberattack can cause a network the size of Bitcoin or Ethereum to be completely shut down in one go.
As long as even one node on the network is up and running, the centralized application remains available - performance will of course be significantly degraded, but the network will continue to exist. The DApps network cannot stop working - since the network relies on a peer-to-peer system, it continues to work even if individual computers or parts of the network fail.
A decentralized application is a relatively new concept for managing our online data. A key component of the explosive growth of DApps is the goal of building a self-sustaining system.
Such a decentralized system does not require intermediaries and instead directly connects users and providers. Using DApps allows a person to publish something on the blockchain that cannot be deleted or changed by anyone, not even the company that created the system.
Ethereum-based DApps are created using smart contract technology. These are programs that work like real contracts but differ in several key aspects. The most important of these differences is the fact that smart contracts only code, and do not require a third party to rule on the contract.
Once implemented, they are fully automated and completely unchanged. This is because smart contracts are, at their core, simply an “if / then” algorithm that executes as soon as a set of preconditions are met.
For example, if you rent out an apartment to someone, you can formalize the terms of your contract into a smart contract that will be executed automatically - for example, providing the tenant with access to the apartment if he paid the rent. This will protect both parties to the contract from fraud.
Decentralized applications are open source. This allows you or your trusted representatives to ensure that the application is fully functional. Everything that the application does is set out in open source code, which is available to each of us.
Moreover, anyone can edit and make changes to it, or use it as a base for their own application. For example, if you take the example above for renting an apartment, you could create an open-source AirBnB-like site that anyone could test or improve.
Only the backend is different, the frontend may be the same
An important difference is that, to the end-user, a decentralized application can look just like any other centralized application. This is because the only difference is the backend where the application data is stored.
Thus, DApps provide the unique benefits that accompany blockchain technology (privacy, security, transparency) across a variety of use cases: games, financial applications, and utilities. Everyone benefits from decentralization.
Decentralized applications vs smart contracts
Those new to decentralized applications might say that DApps are like smart contracts, they are simple systems. Yes, in part they are very similar, but there are a number of things that are very different.
However, this does not mean that decentralized applications and smart contracts are not related to each other. DApps are websites and applications connected to the blockchain, and smart contracts are what allows them to connect to the blockchain.
Than? Using an API that links a site or application to a centralized database. Smart contracts are an internal component and play a small role in the functioning of DApps. Simply put, building a DApp based on smart contracts requires a system of many smart contracts. In addition, the creation of an external interface can only be done with the help of external software.
Decentralized applications can accept an unlimited number of participants from both sides. This distinguishes DApps from smart contracts, which have a limited number of participants.
Decentralized applications can also be used outside the financial realm. If you've ever used the Tor network or downloaded a torrent, you've used a DApp. DApps are at the forefront of the cryptocurrency world.
Nobody owns DApps. They never have downtime. Moreover, their decentralized nature means that no entity will have the right to censor or shut them down. This is why DApps are very important.
At the moment, DApps are not fully implemented on the basis of the Free TON blockchain, but this moment is already trying to change the community. We have the capabilities and advantages that Free TON possesses, the revolution is coming.
The Free TON blockchain is more scalable than Bitcoin, EOS, Ethereum, NEO and others. The transition to the Free TON blockchain significantly increases the speed of functioning of decentralized applications. Free TON's throughput reaches 1,000,000 transactions per second.
The blockchain uses a secure and reliable Failover Byzantine consensus based on delegated POS, as well as smart contracts written in different programming languages.
Due to scalability through sharding, decentralized applications can reap many benefits. The transition to the creation and creation of new decentralized applications will significantly increase the popularity of Free TON, as a result, and the cost of TON Crystal.
The rapid influx of new members and an increase in demand for TON Crystal will positively affect the price of coins and the market capitalization of the Free TON project.
Take advantage of the transfer of blockchain to the system. Free TONs have everything - and applications that provide great popularity from the cryptocurrency community.