After introduction of smartphones and other gadgets, almost everyone is familiar with the term apps. People used phone apps for a wide range of purposes like games, social media like Instagram and Snapchat, entertainment like YouTube, etc. User’s all needs could be satisfied with mobile apps. Nowadays, a new form of apps is gaining popularity Decentralized apps.
What is a (Dapp) Decentralized app?
A decentralized app uses blockchain technology and has fundamental differences from web apps. Normal apps run on centralized servers belonging to that company. Whereas, decentralized apps (Dapps) are developed on the blockchain technology. It has decentralized peer-to-peer (P2P) networks.
The most important advantage of the blockchain is that it is a distributed ledger. IT means every participant of the blockchain has a copy of the transaction. There is no single computer or organization with exclusive access to the data stored on the blockchain network.
The data blocks on the blockchain are immutable, which means it is not possible to change the data stored. Because of this feature, blockchain is more secure and enhances transparency, as it does not hide information.
Categories of Dapps:
Even though Dapps manage and generate tokens, it is unnecessary that they are transaction apps like Bitcoin. Tokens generated by these Dapps are simply used as a reward system for encouraging nodes to add value to the app.
Type 1: DApps: Dapps with their own blockchain system fall under type 1. A popular example is Bitcoin, Litecoin blockchains. We can compare their functionality with operating systems like MAC OS, Windows, etc.
Type 2 Dapps: Type 2 DApps use the underlying blockchain of type 1 apps. They have their tokens and necessary protocols for their functioning. The best example of type 2 DApps is Omni Protocol. It is a distributed trading platform based on the Bitcoin blockchain and ensures trustless, peerless, and effortless exchange of assets or value between transacting parties.
Type3 Dapps: Type 3 DApps are based on the protocol of type 2 applications. The best example of Type 3 Dapps is SAFE NETWORK (Secure Access For Everyone). It is a communication and data storage network that replaces data servers and centers with some more facilities for users.
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This article is first published on www.blockchainshiksha.com
Written By: Shubhada Pande