[Decentralized Applications (dApps)] - Crypto Academy S5 - Homework Post for Task 8
What are dApps? Explain the working system of dApps? What are the differences between dApps and other applications? Explain the advantages and disadvantages of dApps? How can dApps developers promote their apps? What should we pay attention to when using dApps? How do we find the information of a DApp that we want to know? Provide the steps (Screenshot required).
WHAT ARE DAPPS?
DApps is a short form of Decentralized Applications. These kinds of apps are based on the blockchain system and are also open source. Unlike some apps like Facebook, twitter, and the likes which are highly centralised and controlled by a central authority who can suspend or close an account, DApps are decentralized and are not controlled or governed by any centralized authority which means every user is in total control of their account without any interference from any third party and works on a per to peer system.
DApps source codes are open sourced which implies that it is accessible to everyone, it allows other users to take part in making decisions on the platform. Security is very well guaranteed on these platforms due to their decentralized nature. DApps do have some sort of a reward for its users who have the responsibility to validate transactions, they are known as validators or miners.
EXPLAIN THE WORKING SYSTEMS OF DAPPS
DApps operates in a way that resembles the functions of a blockchain system. Nodes on DApps are the users and each has a unique responsibility for the development and growth of the network.
Transactions are processed through smart contracts; these are contracts that those transactions follow to be executed and they are predefined and stored in the network already. With the smart contracts users operate on the platform and transactions are also executed in accordance with the set rules. Those transactions are recorded on the platform automatically without the need for any human effort. Smart contracts set the environment for validating transactions.
DApps works with nodes and all nodes must agree at all points in time for the continuous operation of the platform so all nodes are updated whenever there is an execution of an operation. This ensures the smooth running of the platform.
Their peer-to-peer function also allows transactions to be confirmed or validated without third parties. DApps have progressed much when they adopted the operations of blockchain technology. It has ensured their safety and privacy.
WHAT ARE THE DIFFERENCES BETWEEN DAPPS AND OTHER APPLICATIONS?
| DApps | Other Applications |
|---|---|
| There is no central authority that presides over the platform with rules and restrictions | there are central authorities or nodes that control the platform with rules and restrictions |
| They function on blockchains | they do not function on blockchains |
| Comparatively high security | relatively low security |
| They make use of tokens | no tokens involved in its operations |
| Less expensive to maintain | highly expensive to maintain |
| No one owns the platform | there is an owner of the platform |
| They perform functions that are alike | the perform different functions |
EXPLAIN THE ADVANTAGES AND DISADVANTAGES OF DAPPS?
ADVANTAGES
• They are immune to censorship. DApps are not controlled by any central authority, this makes it difficult for any government or authority to place restrictions on the platforms.
• Data once recorded on the platform cannot be altered or manipulated by any person.
• They are highly secured. DApps operates on blockchain systems which guarantees their security.
• Users are autonomous of a central authority. Due to their decentralized nature, users are free to operate as compared with centralized apps which impose a lot of restrictions on its users.
• The platform performs all round as the failure of a single node does not halt the operations of the platform.
DISADVANTAGES
• New users find it difficult to navigate their way on DApps as they are mostly not user friendly.
• Transactions are irreversible. In case of a wrong transaction, there is no central authority to help in the reversal of the transaction. This leads to loss of funds of users.
• They are open sourced and makes them vulnerable to hacks.
• User verifications are difficult due to their decentralized nature.
WHAT SHOULD WE PAY ATTENTION TO WHEN USING DAPPS?
Crypto could be risky and most people do not however, it could also be very beneficial. A lot of people do not research deep before investing in it. there are DApps known as High-risk DApps, they have reasonable terms and conditions.
Most of them deceive people by claiming to be decentralized and very transparent. People who give out referral links are also promised some tokens when people register through them. Some might be true and some might not. That is why it is very important to have enough knowledge of the DApp before trying to invest in any of them.
HOW DO WE FIND THE INFORMATION OF A DAPP THAT WE WANT TO KNOW? PROVIDE THE STEPS (SCREENSHOT REQUIRED).
Here are the steps to finding information on a DApp
• First, go to https://www.dappradar.com/
• There is a search box where you can search for the DApp you are looking for.
• Enter the name of the DApp and select it.
• Click on the DApp to see all information on it. Some of the info you can find are Transaction, Volume, Users, Balance, Historical activity
• You can go to advance data to see more comprehensive analysis on the DApp.
• Description of the DApp can be also be found there.
• Also, you can click on Ranking on the Top menu to find your DApp.
list of DApps in Ranking
CONCLUSION
Much gratitude to Prof. @wahyunahrul for this Task. I learned a lot.