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What is Decentralized Dapp (Decentralized Application)

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What is decentralized dapp? In the field of blockchain technology and cryptocurr

What is Decentralized Dapp (Decentralized Application)

What is decentralized dapp? In the field of blockchain technology and cryptocurrency, we often hear a term called “decentralized dapp”, which refers to a type of application where the code or system needs to be maintained by one or multiple entities.

This term sounds similar to Bitcoin, but in reality, it is not a very good term. Simply put, it means translating this phrase into “DAPP”. This is actually a concept: you can connect smart contracts to a specific environment by running a software and vote, perform tasks to earn profits. Then users can use smart contracts to automatically perform certain operations (such as transfers) without the involvement of any third party and update their smart contract addresses at any time. This is what decentralized dapp refers to. It ensures the security of users’ assets by letting everyone know if they have control over their ownership, thus achieving true decentralization. So, is it a false proposition? Actually, it is not. Why do we emphasize understanding what decentralized dapp means? Personally, I prefer to talk about some definitions:

1. No one controls your account/transaction history/behavior; 2. You must have enough information to obtain rewards instead of being preempted by attackers to obtain this information; 3. Only a few people can fully control your funds or value; 4. It only exists in the network and not on servers, so no profit can be gained from the network; 5. It is impossible for someone to do anything and get rewarded with certain value. So how can this be achieved? First, remember that the most important thing for users who do not want to disclose information is not to provide data for everyone to view or post messages, but to show the data of the application you are building to the whole world and respond to some of those data. Because if you have the ability to analyze your user information, you will not lose all their features, just like Google search index. However, if someone wants to spend a lot of time and effort to purchase a large amount of content, it definitely cannot meet the requirements, and due to the lack of transparency, even if he is willing to spend several weeks, he may not be able to find the ideal answer. But if a person wants to collect as much knowledge as possible, then his efforts become very difficult. Therefore, in order to become smarter, we are not only developing new tools, but even creating a new way to make money. (There are many perspectives here)

Currently, the current situation of decentralized dapp mainly reflects one aspect: people no longer believe that pure wallets will bring profits, and ignore the interaction between all social media platforms and wallets. Instead, users rely more on chat records and payment devices on their mobile phones, rather than blockchain-based protocols or products. This makes most dapps have almost no motivation to explore user needs because communication between users is often expensive and difficult to confirm. At the same time, this situation also affects user experience.

Let’s take a few examples to illustrate.

What does Decentralized Application mean

In the traditional internet industry, user experience and usage habits are the most important. However, with the development and popularization of blockchain technology, people’s understanding of decentralized applications is constantly improving.

Currently, most cryptocurrency wallets, smart contracts, digital asset management, etc. belong to the non-custodial or open-source type. Decentralized dapps, also known as “DecentralizedApps”, allow developers to create applications based on the Ethereum network (such as Coinbase, Uniswap, and Sushi), and then sell tokens to users through these tools. These projects are community-driven, and they hope to create value for their services and be rewarded.

DeFi is actually an example – users can invest funds into a protocol, such as the lending platform MakerDAO, to provide loans; or they can put funds into other DeFi ecosystems for investment, such as Aave or Uniswap, which makes the total amount of locked funds in these platforms more than 10 times higher than traditional financial products. (Note: “DecentralizedApp” refers to a Dapp application that can operate without the need for a third party).

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