I’ve recently come across the term DApps in discussions about blockchain and cryptocurrency. I understand that it has something to do with decentralized applications but I’m unsure what exactly that means. I’m particularly interested in understanding how DApps function, and how they are different from regular apps that we use on our phones or computers. I’ve tried reading some articles about it, but the technical jargon and complex explanations often leave me more confused.
Furthermore, I’m curious as to how this concept of DApps ties in with cryptocurrencies and the wider blockchain technology. Does the creation or function of DApps require the use of specific types of cryptocurrencies? What’s the significance of DApps in the context of blockchain technology? I’d really appreciate if someone could simplify these concepts for me.
Sure, I can help clarify this for you. DApps is an abbreviation for decentralized applications. These are applications that run on a peer-to-peer (P2P) network of computers, and not on a single computer. This is unlike typical apps that run on centralized servers. A DApp, once it enters the network, is not under the control of any single entity which makes it resistant to censorship.
DApps play an important role within blockchain technology because they use its decentralized, secure base layer to run applications. Cryptocurrencies are integral to this system. They incentivize individuals to maintain the network that the DApps are built on. For instance, the Ethereum blockchain supports many DApps and Ethereum itself is a kind of cryptocurrency used to pay for the computational efforts that hosting these applications require. The significance of DApps lies in their potential to democratize the digital world, reducing the power of centralized authorities, while improving transparency and accessibility.