Get into the fundamentals of dApp to enter into blockchain

Decentralized apps are playing a crucial role in bringing the concept of blockchain-powered applications to various sectors. The blockchain serves many industries like supply chain, logistics, finance, etc. If we consider the global blockchain market, then it is very surprising to know that the market is expected to $67.4 billion mark by 2026.

This statistic is the major reason behind the development of various dApps. What are dApps, their benefits, and functioning; everything will be covered in this blog. If you are eager to know more about blockchain-based decentralized apps, stay connected with this blog.

What are dApps in actual?

Decentralized applications (dApps) are applications that run on the blockchain Ethereum platform or in other words, the nodes in the peer-to-peer network. The biggest thing is that the data is stored on a public ledger that records everything securely and transparently that cannot be altered. The dApps have unique cryptographic hash functions, making them irrevocable in nature. 

The dApps combine smart contracts and frontend user interface. A dApp’s frontend code and user interfaces can be written in any language, but its backend code run only on a decentralized peer-to-peer network instead of central servers. These dApps can be built for gaming apps, finance, social media, etc.

What are the different types of dApps?

Now that you have come ot know about dApps, let’s find its various types as well. The dApps are classified into 3 types that are described below.

  1. Type I: Decentralized applications with their own blockchain fall under this category. Factom is one such example that uses it own blockchain in providing registry services for the mortgage industry. This ensures the validity, security, integrity, and ownership of all the relevant data.
  2. Type II: This type of dApp uses public blockchains, i.e., either type I dApp blockchain or other general blockchain platforms like Ethereum, Hive, EOSIO, etc. Augur dApp is the best example of Type II dApp as it uses the Ethereum blockchain.
  3. Type III: This type of dApp uses the protocol of type II dApps. DeFi dApps are an example of type III because these use Ox protocol which runs on the Ethereum blockchain.

How does dApp function?

As the blog is totally devoted to dApps, let’s not hide the functionality of dApps as well. The working of dApp will make it even more, clearer to you about the term.

As stated above, dApp has 2 important components- frontend and backend. The frontend basically connects with the user and the backend involves smart contracts. The dApp is all about smart contracts as these contracts run on the blockchain network mainly the Ethereum blockchain. These contracts are comprised of specific rules and regulations for successfully working the dApp irrespective of the surrounding environment.

The frontend of the dApp executes the code on the user side and acts as a communication line between the user and the decentralized application. These also include digital wallets to carry out different functions like transactions, buying, or selling assets.

Difference Between a Centralized and Decentralized App

Decentralized appCentralized or traditional app
Based on blockchainOwned and controlled by a single company
The application data is available at different nodes of networkNo such advantage in traditional apps
Peer-to-peer transactionsNo peer-to-peer transactions
No middleman is required or central authorityRequires middleman or central authority
Smart contracts are developedNo smart contracts

Advantages of decentralized apps

The decentralized apps are advantageous in nature and if we start counting on its benefits, then you may be left spellbound with their impeccable offerings. Let’s find the advantages of dApps below:

  • Security

dApps are tamper-proof and highly secured against malicious activities or intrusions.

  • Privacy

With decentralized apps, users do not need to disclose their personal identity to use the app.

  • Zero downtime

Once the smart contract is put on the blockchain, the network as a whole will always be able to serve clients who want to interact with the contract. Thus, eliminating denial-of-service attacks against dapps.

  • Data integrity

Data stored on the blockchain can’t be changed and disputed. Transactions and other data that have already been made public can’t be forged.

  • No censorship

No one on the network can stop users from sending transactions, deploying dapps, or reading data from the blockchain.

  • No trust issues

Smart contracts can be executed at full guarantee without having to trust any central authority. 

  • High transaction speed

The decentralized apps possess high transaction speeds as there is no involvement of any third party.

  • No middlemen

When clients use smart contracts, they don’t have to depend on a third party. 

Factors making the dApp successful

Numerous factors are responsible for making dApp a big sensation. Are you excited to know?

Stay tuned!

  • EVM (Ethereum Virtual Machine)

A platform called Ethereum gives you access to the Ethereum virtual machine. The codes are run by using the nodes in the distributed network. Here, the machine takes care of all the node’s information, such as its address, balance, the price of gas, and information about the block. It’s written in C++, Java, JavaScript, Python, Solidity, Node.js, and many more. This means that anyone on the network can run the guaranteed and deterministic codes.

  • Solidity language

Solidity is the language that Ethereum uses for smart contracts. The main purpose of solidity is to keep track of tokens on the nodes. Programmers who know how to use JavaScript, C++, and Python could also easily understand the language used by solidity. A Blockchain dApp Development Company holding good knowledge of smart contracts can create a program for the Ethereum smart contract easily.

  • Gas

In the Ethereum blockchain, miners process smart contracts, which leads to the addition of new blocks. The rewards given to the miners, through smart contracts on the Ethereum virtual machine costs money in the form of “gas.” In the smart contracts, the miners agreed on how much gas they had to spend. If the smart contract gets complicated, the gas fee goes up as well.

  • Algorithm

In the blockchain, the new blocks are added to the end of the previous block which comes under the “proof of work” process. As the blocks were being added, the hash value is generated and that hash value would be the next block’s value. For example, block 4 will be block 3’s hash value, and block 5 will be block 4’s hash value, and so on. If one of the nodes tries to make a change or any of the data in the block is changed, the hash value for that block will change and data will be updated. 

  • Smart contract

The smart contracts are agreements in which we follow some of the rules and restrictions while doing the transactions. It is a protocol that automatically acts any action based on the trigger. In the Ethereum blockchain, every smart contract address can send and receive ethers from and to other platforms.

  • Consensus protocol

Decentralized platforms use different consensus protocols, such as Proof of Work, Proof of Stake, Proof of Elapsed Time, Proof of Burn, and so on. These consensus mechanisms protect and reward most blockchain dApp protocols. There are more ways to come to an agreement, but these are the most common ones. Thus, figuring out the consensus protocol is good for everyone. 

Finest characteristics of dApps

  • Open source

An open-source dApp’s code is easy to find and understand for users who know what they’re doing. People have faith in the applications because the data is clear and safe. A public blockchain dApp record makes it easy for users or third parties to check information about transactions. A shared database holds information about users, but no one controls it. 

  • No central authority

A decentralized app is completely open-source, where dApp’s data is stored, and no one owns the money or tokens. Users are eligible to connect their user sessions and metadata through public and private keys, enabling them for an easy sign-up or registration process. The dApps are not managed by any single entity because they run on blockchain networks managed by different users or nodes. 

  • Incentivised

People make mainstream dApps to make money. One common goal of dApp development is to give users an incentive, usually in the form of token rewards, to keep the dApp’s security, transparency, and operational performance high. The dApp development can be done by almost everyone, anywhere in the world, through the internet.

  • Protocol compliant

Since the protocol is open source, all network users must agree on any changes. The protocol is in a decentralized stack and is not restricted by any laws. You need a cryptographic token to use dApp, and miners, stakers, and other contributors must be paid in tokens.

What Aspects need to be considered for dApp Development?

In order to develop a robust dApp, there are certain factors that one must keep in mind before initiating the development process. For this, you can get in touch with any company which provides blockchain dApp development Services to get detailed information about the development process.

  • Type of Platform: 

Knowing the platform for your dApp is extremely crucial as it will help in making all the operations easier. Some apps are based on cryptocurrencies, while others use smart contracts or more than one crypto token. 

  • Adoption Rate And Functionality: 

Finding out the adoption rate and functionality of a blockchain, as well as the level of community support is crucial. This rate precisely predicts how widely a particular blockchain innovation has been embraced. A technology with acroos-the-board acceptance is highly preferred.

  • Cryptocurrency: 

Now, focus on the thing that whether you need to use cryptocurrencies in your mobile app or not. This decision is necessary for figuring out which platform is the best.

  • Scalability: 

If you want to build decentralized platforms that are based on blockchain, you should think about how scalable a blockchain is. To do this, you should look at three main things: security, speed, and decentralization. This is called the Scalability Trilema.

  • Public/Private Network: 

Now, consider the type of network for your dApp. If you want a network that is accessible to everyone for making changes, then choose the public network. However, if you want only limited people to join, then you can go with private. Choose a platform and build your own decentralized application (dapp) on that platform.

Role of Wallets in dApps

Wallets play a significant role in dApps workflow. These assist in organizing users’ blockchain address and the cryptographic keys which are required for their identification and authentication. 

The wallets are in charge of starting smart contracts or the backend of dApps rather than relying on HTTP protocols. These smart contracts guarantee the successful execution of transactions by interacting with the blockchain network. The dApps can be used for a variety of use cases because smart contracts are programmable codes that can be customized for particular use cases.

Top Platforms for Developing dApps

Wanna look at some of the popular platforms that are used for building dApps? Find them below:

  • Ethereum

Ethereum is a platform with  a built-in  Turing-complete programming language. An abstract layer in Ethereum enables anyone to create their own rules for ownership, transition functions, and formats of transactions. All this is done through smart contracts, which execute the instructions only upon meeting the conditions. For decentralization and maintaining security, Ethereum, or ETH, is highly recognized. Ether is the native token of Ethereum, utilized for making transactions and trading assets.

  • EOS

The platform EOS is not entirely decentralized. Currently, it uses 21 validators who confirm the transactions using a consensus process called “Delegated Proof of Stake.” The validators are compensated for their votes, which secure the network. Voters may remove validators who don’t do their duties. The procedure is scalable, which has the apparent benefit that adding additional users may go much more quickly when there isn’t network congestion. 

  • TRON

TRON employs a DPoS- “Delegated Proof of Stake” consensus method. Instead of using a sidechain, it scales the main chain to tackle the scalability issue. It may also have a much more clear cost structure. It is not completely secure. If the validators cooperate, users may still be locked out.

Use Cases of Decentralized Applications

Are you excited to know about the various use cases of dApps? Below are few of the niches in which dApps are built.

  • Social media

Blockchain technology brings diversity in the social media apps. Various issues like censorship and privacy associated with social media sites has been resolved with dApps.

  • Mobile games

Decentralized apps offer peer-to-peer gaming where players can easily interact with each other. Games like CryptoKitties are beyond horizons to offer immersive experiences to players.

  • Finance

Finance is another niche where blockchain can do wonders. The capability of blockchain is expanded to the finance sector as well. Through decentralized finance applications, transactions can be carried out in a smooth and seamless manner. There is no involvement of banks, credit card companies, or insurance providers. In addition, Defi offers an additional layer of protection.

  • Streaming music

Decentralized applications also play a fine role in music. With the music dApps, users can stream, earn bitcoin, and pay musicians. One such example of an app is Musicoin. In this way, musicians or composers can receive income from listeners by uploading their own songs in the dApp.

What does it Cost to develop a dApp?

When it comes to the cost factor of developing decentralized apps, there are numerous factors that are responsible for deciding the cost of the project. If the vision of the project is vast, then there would be enormous sub-factors based on which the budget is decided.

The main factor is the selection of the development company. Every firm has a different price range for delivering decentralized applications. Their experience, developers, skills of developers, efforts invested, usage of the latest tools and technologies, and many more contribute to the project price of the company as they build a budget after recognizing all these things.

Apart from these, what else is responsible for deciding the cost of the project? Let us have a look below:

  • Type of platform used
  • Latest tools and technologies
  • Type of security features
  • Complexity of the app
  • Number of features
  • UX/UI design
  • Duration of the project
  • Maintenance and many more


Blockchain technology is evolving everywhere. All industries and organizations chase decentralized apps to make their business more effective and protected. There is no other way to keep the business data as safe as it is possible with blockchain. Knowing the emerging benefits of dApps, it is expected that sooner the world will transform into a decentralization, where the risk of hacking and other vulnerabilities can be kept at bay.

If you are also on the list of businesses that want to enter the blockchain world, then developing dApps is the right decision for your business. Contact any expert blokchain dapp development company and discuss your project needs to convert your dream into reality.

So, dont wait anymore! Act fast to leave a long-lasting impression in the technological world down the lane.

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