How Decentralized Application Work?
Dapp is short for decentralized application:
A Dapp has its own back-end code that runs on a decentralized peer-to-peer network , which differentiates it from more common applications whose back-end code runs on centralized servers.
Centralized, distributed and decentralized: the differences
Software and centralized systems are currently the most prevalent.
In each network, dapp development services the components interact with each other to achieve a common goal.
In centralized systems, decisions to achieve a goal are made by a fixed, central entity and then passed on to the various components.
In a distributed system, data does not reside in a single central node, but is distributed across multiple nodes.
A centralized system could be designed to be distributed as well .
In a decentralized system, on the other hand, each node has equal relevance and there is no dominant central entity with decision-making powers.
Decentralized applications are applications that run on a peer-to-peer computer network , rather than on a single computer. They can be considered a form of software designed to function on the Internet without being controlled by a single entity.
Dapps on the blockchain:
Decentralized blockchain applications must meet the following criteria derived from the document by David Johnston, CEO of Dapps Fund:
Full open source application;
Data and transaction records stored on a public blockchain;
Use of a cryptographic token;
Generation of tokens by the application.
Johnston in his white paper not only identifies the main features of a Dapp, but also classifies them according to whether or not they use a proprietary blockchain.
David identifies three types of Dapps:
Type 1 – Dapps with their own blockchain, like Ethereum;
Type 2 : Dapp that utilizes the blockchain of a sort 1 Dapp, however with restrictive tokens for its activity;
Type 3 : Dapp that utilizes the convention of a sort 2 Dapp.
The Ethereum Platform
The Ethereum platform has been the true forerunner of decentralized applications. It provides a Turing-complete decentralized virtual machine, the Ethereum Virtual Machine (EVM) , that executes scripts using a network of public nodes.
The main feature is decentralized code , that is, code hosted on thousands of computers and then executed in parallel.
In the sad case of an organization hub fizzling or declining to execute code, a similar code is executed on any remaining PCs (hubs) on the organization.
Therefore, DApps are considered more flexible, transparent, distributed and resilient .
To date, Ethereum has a large number of dApps on the market , however successful alternative platforms such as TRON and EOS have been developed over time .
Although dApps work —as mentioned in previous lines— within a blockchain dapp development company, the execution factor is also involved. This can be described as the environment where decentralized application design occurs. Of course, everything is executed within defined standards.
Now, the development of dApps is totally adequate when the following elements are also present:
Security:
DApps are advantageous because they secure all the information that is developed in them. It works this way because the applied cryptography encrypts the messages, so that they cannot be decrypted by outside systems or people. Therefore, the receivers are only authorized to validate or not.
This feature fits perfectly with websites that ask their users for personal and banking information. In fact, online casinos like are already starting to participate in dApps, especially to avoid storing data on external servers or in the same cloud. At the end of the day, such a decision reinforces the privacy policies of these portals dedicated to entertainment.
Open source:
One of the most outstanding qualities of dApps is their ability to function autonomously. This is thanks to its open source structure, which allows everyone involved in the network to participate in decision-making. At the same time, open source brings authenticity and transparency to decentralized applications. With this “democratization”, dApps give way to constant audits by all users with the knowledge to do so. In addition, the number of developers is higher, translating to optimized support and service.
Absence of central point:
It is clear that dApps perform their functions separately from central servers. Hence, defi development service downtime levels are low or zero. Now, the presence of multiple nodes ensures that the network keeps going in case one goes down. In this way, the records of each user are saved in a global copy without the risk of being seen by third parties. Decentralization is 100% beneficial at the time of restrictions and censorship by governments.
Generally speaking, dApps are impenetrable, which is why financial associations are increasingly joining the system. A point against this feature would be the price to pay for the blockchain scheme, since the network would have to be large and robust enough for the activities to be carried out properly. It must be taken into account that the administration of the nodes must be equitable, with this the assault of “51%” is avoided. That is, the attack related to the control exercised by the majority and that can lead to fraud.
