By now, it’s safe to say that blockchain is here to stay. As it becomes more prevalent around the world, new developments are constantly being added into the mix to improve efficiency and convenience for users and organizations alike. One of these is the introduction of decentralized applications, or dApps.
A typical software application is stored on a centralized server or network. It receives data from various sources, which it processes, computes, and manipulates based on frontend requests . A dApp has its backend code on decentralized technology such as blockchain, where it receives and computes data provided by the blockchain, i.e., smart contracts. dApps aren’t controlled by a single server or entity, which means they don’t have data silos or a single point of failure.
There are currently around 4,000 dApps worldwide, ranging in category from gaming and gambling to health and insurance. While the leading categories in Ethereum dApp activity are games and exchanges, finance apps have been gradually gaining traction over the past few years. Still, growth isn’t what you’d expect. After all, dApps have been around since 2015 – so why aren’t they being developed at a faster rate?
Developers need to create applications that attract users, but there aren’t enough enterprises and consumers using blockchain-run networks to begin with, which makes it difficult to drive an app to success.
But given the constant upsurge of blockchain, edge computing and mobile computing, distribution of control is unavoidable and the emergence of dApps is already a steady trend. Therefore, now is the time for enterprises to pay more attention to what’s happening and how it affects them and their target audience.
Everything has pros and cons, and dApps are no exception. Let’s start with the advantage of decentralized applications:
It’s not all roses when it comes to dApps; there are a few issues that should be addressed:
Blockchain technology has changed, and is still changing, the world. It brought innovation to many different industries, and enables companies to introduce new and exciting services and capabilities. dApps are just one of the byproducts, offering secure open-source software for everyday users and businesses. As with all advancements, it is inevitable that numerous practices currently in use will become obsolete, as evident by the growing number of finance-related dApps indicating more blockchain adoption in the industry. As dApps continue to grow in number and more innovations enter the playing field, it is always important to understand the good and bad of each application and technology as we adopt and adapt.
Valid Network’s blockchain security platform provides complete life cycle security for enterprise blockchains from initial development to active deployment and management. Based in Be'er Sheva, Israel, the company’s solutions enable enterprises to innovate with blockchain faster, providing complete visibility and control over their distributed applications and smart contract governance, compliance, and security posture through advanced platform capabilities.
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