What are DApps?

Contents

1What are DApps?
2What makes it a Decentralized Application?
3Confused? Think of it differently.
45 Interesting Examples of decentralized applications

Decentralized applications (DApps) run right at the top of blockchain technology and integrate with it.

Bitcoin is itself a decentralized application. Bitcoin is a distributed block solution that enables financial transactions. In this case, you can probably get an idea of what defines a DApp.

The Ethereum White Paper defining the old Ethereum network divided DApps into three main categories:

Financial applications . With which to provide users with methods to manage finances, both fiat and crypto, including savings, wills and even “some kinds of large-scale employment contracts”.
Semi-financial applications . They involve money, but finances are not their main focus; the example given is for “self-implementing rewards for solutions to computer programs.”
Non-financial applications . They do not involve money at all, they come to be like an identity verification process, a voting system, a government tool or even a decentralized file storage system.

What makes it a Decentralized Application?

According to The General Theory of Decentralized Applications White Paper , an application is only considered a DApp if it meets the following criteria:

Open Source: The DApp must be completely open source, operate autonomously, and not have a single entity controlling its tokens. Its adaptation and improvements are possible, but all changes need the consensus of the stakeholders in that DApp.
Decentralized: Cryptographically storing all data on a publicly accessible decentralized blockchain.
Tokens: Offer a token / currency native to the blockchain that allows both access to the network and the contribution of value by miners and users.
Algorithm: Uses a standard cryptographic algorithm to allow mining across the node network.

Once again, Bitcoin provides the easiest example for a decentralized application. While there is some discontent with the direction of Bitcoin’s development, it still continues to check all the boxes to follow. The whitepaper continues, explaining that there are three types of DApps:

Type I: The DApp has its own chain of blocks or blockchain
Type II: The DApp uses the blockchain of a type I DApp. Type II DApps are protocols that issue the necessary tokens for their execution.
Type III: The DApp uses the protocol of a Type II DApp, but they are also protocols that issue and require tokens.

Confused? Think of it differently.

A type I DApp is like an operating system: Windows, macOS, Linux, etc. Type II DApps applications are similar to “general purpose software programs” such as a word processor or spreadsheet program. Type III DApps are similar to specialized programs that use one of the types of procedural software, “like a mail tool using a word processor.”

5 Interesting Examples of Decentralized Applications

Now that you understand the definitions and characteristics of a DApp, let’s consider some examples. These examples will give you a better understanding of how DApps work and how to use them.

The following example also illustrates the three categories above.

1. Augur

Augur combines decentralized networks and financial forecast markets to create powerful forecasts. It is built on the Ethereum blockchain. In its current form, Augur allows you to make predictions about real-world events that are not limited to financial markets. The platform turns your prediction into “stocks” that other users can buy or sell.

Augur is a type II DApp.

2. Golem

Golem was one of the first global markets to allow its computing power to be used. The platform sees itself as a “global, open source and decentralized supercomputer that anyone can access.” What does that mean? Well, it means that if you have unused computing power, you can lend it to the network. In turn, that unused or idle computing power is available for purchase on the Golem network as part of a combo package.

Any user can share their computing power and earn tokens from the Golem network. Golem’s first use case is for GCI rendering, allowing artists to render computationally intensive Blender and LuxRenderer scenes.

Golem is a type II DApp.

3. Aragon

Aragon is an ambitious decentralized management platform, also built on the Ethereum blockchain. You want to break down the traditional barriers that restrict the creation and maintenance of organizational structures. In other words, Aragon wants to facilitate the creation of private Decentralized Autonomous Organizations (OAD), along with everything necessary to be successful. This means arbitration, token management and transfers, role assignment, fundraising, and much more.

The Aragón Network Token, ANT, allows users to participate in the operation and decision-making processes of their network.

Aragon is a Type II DApp.

4. Sia

Sia is a promising decentralized storage platform leveraging “underutilized hard drive capacity around the world,” creating a one-of-a-kind blockchain-based data storage market. The platform turns those empty hard drives into cheap cloud storage that almost anyone can use. The prices are cheap, especially when compared to other big cloud storage providers.

There are still some issues with the Sia platform, as well as new features that are on the way. But Sia is a popular project that will end the dominance of the major cloud hosting providers and return some power to individual users. David Vorick, CEO of SIA, even dreams of partnering with Netflix as “one of my personal goals for our next three years.”

Yes it is a Type I DApp.

5. SAFE network

The SAFE Network uses a decentralized approach to protect consumer data and private communication. SAFE, which stands for Secure Access for All, uses peer-to-peer technology to share that computing power between connected users. This creates a secure private network, rather than relying on centralized servers.

The SAFE Network wants to protect users from governments, censorship, data collection, criminals, and much more. By contributing your storage space and network capacity, you will get MaidSafe, the SAFE Network token. In turn, you can exchange it for Bitcoin (and then fiat currency if you wish)