[Decentralized Applications (dApps)] - Steemit Crypto Academy Season 5 - Homework Post for Task 8

The term dApps, stands for Decentralised Applications. This means that dApps cannot be controlled by any central authority or third party. These applications run either on the Blockchain or on a peer-to-peer basis and as such, no single person or authority is able to exercise control over it.

dApps are very different from other traditional applications because other applications such as Facebook and Instagram are controlled by a central authority, but this is not the case with dApps. dApps operate using peer-to-peer open source networks, in which each node is a key player in the running of the application. This is to ensure that no single authority or person has control over it.

dApps are equally transparent and very secure, because they use cryptographic keys (private and public keys), thereby making the dApps secure and eliminating the need for an intermediary.

There are many dApps in the Cryptocurrency ecosystem. Some examples of dApps include; OpenSea, UniSwap,JustSwap, JustLend

There are many more dApps, which exist in different fields like gaming, social media and DeFi. Applications like Trust Wallet and Metamask helps us to access some of these applications.

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Explain the working system of dApps?

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The working system 9f dApps is very simple and easy to understand. As I mentioned earlier, dApps use a peer-to-peer system on an open source network.

This means when a transaction is initiated,it is verified by validators , and it is then completed. Validators, are qualified nodes who have
satisfied consensus mechanism on the Blockchain where the dApp runs. Once this process takes place, the transaction is then completed immediately. dApps also operate on smart contracts, which makes transactions fast, reliable, decentralised and secure. Therefore, there is no need for a third party or a central authority of any sort. Details of any transaction can be viewed on the Blockchain at anytime, and users can secure their accounts using cryptographic keys. There is no need for a central authority.

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What are the differences between dApps and other applications?

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• Decentralisation:
dApps are decentralised applications, meaning that they operate in such a way that no single person, authority and/or third party can control it. This is made possible by their peer-to-peer transaction system which operates in smart contracts.

With other applications, there is a central authority who maintains control over the application.

• Security:
dApps are very secure and transparent. All transactions are recorded permanently on a digital ledger/Blockchain. It is available for everyone to see, and this makes it impossible for information to be deleted or manipulated.

With other applications, information related to transactions are stored, but only the central authority controlling the application has access to that information. This means the central authority can easily manipulate or change the information.

• Privacy:
With dApps, private information concerning any individual is safe, as it is not in the hands of any third party. Only a particular user has exclusive right to his or her account using the private key. Incase this key gets compromised, the account is lost.

With other applications, private information, keys and passwords are in the hands of the central authority who stores them.

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Explain the advantages and disadvantages of dApps?

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ADVANTAGES

• It is completely decentralised. There is no third party, there is no central authority controlling a dApp. Every user has access to see transactions on the ledger, and it is impossible to delete or manipulate anything.

• With dApps, transactions happen very fast. It ranges from seconds to a few minutes for transactions to be completed. This is because of the peer-to-peer open source transaction system which does not require any permission from an authority for transactions to be executed.

• With dApps, private information and keys/passwords are not in the hands of any third party. Only the user has access to their private information and keys. This makes dApps very secure, as it is highly unlikely that users' security will ever be compromised.

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DISADVANTAGES

• dApps provide a means for fraudulent activities to take place. Since there is no for of identity verification and private information is not kept by any third party, people can use this as an opportunity to engage in criminal activities using dApps, and go undetected.

• For an individual to use dApps successfully, they'll need basic knowledge about Blockchain technology, and so, not everyone can easily adapt.

• dApps are not easy to build. This is because they are built on Blockchain technology, and often requires complex networks and protocols.

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How can dApps developers promote their apps?

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• I think the most powerful tool which can be used is social media. Most of the world is connected via social media. Applications such as Twitter, Discord, Reddit, and Pinterest can help you promote a dApp to a wider audience. dApps developers can also use dApp platforms such as dApp radar to promote their dApps.

• dApps developers can equally create custom tokens for their dApps. This tokens can be traded. This will make more people aware about the dApp. dApps developers can equally reward people using this token for doing basic tasks such as referring other users.

• Developers can also run ads on social media, as well as other media, just to create more awareness about their dApps and what it has to offer.

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What should we pay attention to when using dApps?

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• The first thing we should always lookout for is security. Always try to ascertain the level of security on a dApp when using it. This is because the more secure it is, the less risk exists of any user loosing their funds. Also make sure that your private information and keys are kept only by you. Also lookout for fake dApps and fake sites which may cause you to lose your assets.

• it is also very important to always carryout research about the dApp you are using. It is very important to know basic information such as the Blockchain which the dApp runs on, and which activities/transactions can be carried out using the dApp. For example, users of steemit can blog, since steemit is a social dApp.

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How do we find the information of a DApp that we want to know? Provide the steps (Screenshot required).

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It is very important to have basic information about a dApp. This will make it more reliable and trustworthy, and will ultimately help a potential user to decide if they want to use the dApp or not. I will be looking for information about the dApp OpenSea which is built on the Ethereum Blockchain.

To find information about a dApp, I went to the site dappradar

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Once the site loaded up, I could see different dApps and categories of dApps. There was categories for NFTs, gaming, DeFi, amongst others. There was also categories for Blockchains, so I went right away and clicked on the Ethereum Blockchain since the dApp I'm looking for was built on the ETH Blockchain.

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Once it loaded up, I clicked on the dApp OpenSea.

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I am now able to see transaction details on different time frames such as the number of users, transactions, volume, and balance. There is also a chart showing me the historical activity of the dApp. If I want to use the dApp, all I need to do is click on open dApp.

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OpenSea is the world's largest market place for the buying and selling of NFts, and to use it, you'll need to link your ETHEREUM wallet to it

CONCLUSION
I think dApps are the future of applications. We can already see that they can be used in many areas such as gaming, DeFi, NFTs, Exchange, Swapping, amongst others. Using smart contracts, they are able to execute transactions at very fast speeds, and they completely eliminate the need for an intermediary or third party. dApps are safe and reliable, and with the current developments in Blockchain technology, they'll become even more popular in future.

I thank the Prof @wahyunahrul for this lecture. I was able to learn a lot indeed.

Thanks for reading....