After reading this guide, you should have a better idea about the importance of decentralization and what Smart Contracts can achieve.
Known as dApps, Decentralized Applications have been one of the most popular terms in Cryptocurrency. By the time you have read this guide, you will understand what consists of a Decentralized Application and what it does.
To understand what a Decentralized Application is, we have to focus on what is called decentralized, and what is an application.
An application can be any sort of software or game installed on your computer. With the apparition of the World Wide Web, the applications are now connected. However, they are now used to be connected with central servers, gathering all the user’s information.
A centralized Application like Facebook might have access to billions of people’s information such as location, photos, job, habits of breakfast, hobbies… This data is held privately on a central server and most likely being sold to marketing companies. Not only that, but a centralized server can have technical issues, and them shutting down can block countries from accessing it for a few hours.
The Decentralized Applications are precisely like an interface for smart contracts and Blockchain. dApps allow us to use smart contracts in a user-friendly way.
An excellent example of Decentralized Application is the one that has been popular for quite a long time, Cryptokitties. This game, running on Ethereum, allows players to purchase, collect, breed, and sell virtual cats (a bit like Pokemon). However, the game was using too many transactions for its efficiency. It caused the Ethereum blockchain to be congested, significantly reducing the speed of the transactions.
This first attempt to develop a massively used dApp showed the weaknesses of this technology, needing quicker transactions, which is also the most criticized aspect of the current blockchains. If you are interested in building your Decentralized Application, we are glad to redirect you to our Blockchain Programming guide.