understand Decentralized Application in 3 minutes!

Tools are just as numerous and DApps are growing in popularity. The difference is in their configuration. If a traditional app stores most of its data on the same server (s), a decentralized app will use multiple media. Check in.

DApp – Decentralized Application: Definition

The first thing to know about a DApp is the fact that its operation at the end-user level is similar to the usual app. These are tools that you can find on your Smartphones and tablets (or other terminals) that allow you to access options that you would normally use on your computer.

The difference with traditional apps is in storage in different data. A DApp is built on a blockchain -based infrastructure (Ethereum for the most part). In this sense, there is no monopoly on the operations performed.

  • Everyone can access to the code this type of application (open-source)
  • There is no centralized database associated with a DApp
  • Exchanges are made at peer-to-peer (peer to peer)
  • All operations performed are written in blockchain
  • Every action taken is traced
  • A DApp very difficult to hackor even impossible

What DApps use in DeFi

DApps are especially important within DeFi (Decentralized Finance). As a blockchain -based software application, their advantages are many:

  • Unlimited coverage: possibility to perform different actions via DApps
  • Optimized security for all financial transactions
  • Guarantee transparency in all operations

How does a Decentralized Application work?

Here are the key points to know to know how a DApp works:

  • This software application is open source
  • Its operation is based on a blockchain
  • This program is based on more precise Smart Contracts (intelligent contracts)
  • A DApp operates autonomously, without the intervention of a central body
  • A decentralized application relies on a consensus system that involves immutable proof of network transaction.
  • All transactions are traceable and irrevocable
  • Suitable only for Decentralized Exchanges (DEX)

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Why choose a crypto DApps?

Beyond the characteristics discussed in the previous section, it should also be noted that DApps are often associated with a crypto ecosystem. The use of a decentralized app is then closely linked to the creation of a native crypto-currency. In this way, users are encouraged to dive into the world of digital currencies.

In practice, the cryptocurrency associated with the DApp is necessary for the proper operation of the latter:

  • He is essential to access services offered in the decentralized app
  • It is given by reward to contributors ensuring the security of the DApp and allowing it to grow

These different specificities mean that a DApp is able to exist independently and to offer truly decentralized operation. In addition, the most expensive altcoins involved in decentralized applications are also possible is in centralized exchange like Binance, but most remain accessible on exchanges like PancakeSwap.

Advantages and Disadvantages of DApps

Here is a summary of the benefits of DApps:

  • autonomy
  • Security
  • Transparency
  • There is no mediator
  • Very wide range of applications

These applications still exist some limitations which should be emphasized:

  • Sometimes random execution speed
  • Lack of popularity
  • Users are still limited

Conclusion: DApps is an extension of DeFi

the DApps are essential to DeFi today and contains a real extension of it. In fact, these standalone apps allow DeFi seriously compete with centralized traditional finance with the same variety of operations, but safer with guaranteed transparency of all operations. It’s a safe bet that DeFi will one day replace traditional finance, if it doesn’t match up yet!

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