If you have been following blockchain space for a while, you must have come across the word Dapps. but what are Dapps?
Dapps stands for Decentralized Applications. They have been around since the launch of Ethereum and Smart Contracts.
Dapps are very different from a classical web app. For instance, a web app runs on a centralized server, and whenever a client requests for information, it receives the requested information from the server. In addition, a centralized authority controls a web app, and if the server goes down, the web app will come to a halt.
Web apps are more prone to cyber-attacks. However, on the other hand, Dapps function in a decentralized environment.
Some of the Dapps characteristics are –
- Decentralized that makes them independent, and no one controls them.
- Deterministic i.e., they perform the same function irrespective of the environment they are executed.
- Turing compatible, which means given the required resources, the Dapps can perform any action.
- Isolated, which means they are executed in a virtual environment known as Ethereum Virtual Machine so that if the smart contract happens to have a bug, it won’t hamper the normal functioning of the blockchain network.
Innovation in Dapp has led to the development of many tools that are making cryptocurrency experience and enjoyable and secure. Some of the field where Dapps have more profound impacts are-
Wallet
Dapp wallets (Or Smart contract wallets) have been gaining popularity. They provide various functionality besides storing your private key. These wallets are versatile and secure thanks to the flexibility and innovation in designing smart contracts.
Also read: Best Smart Contract Wallets
Some of the well known Dapp Wallets are-
It is a smart contract wallet that lets you lend and earn via variable algorithmic interest, optimize and manage your holdings across different protocols and perform leverage, sort debt switching actions.
Metamask is a part of the Ethereum ecosystem. It lets you make transactions with ease either through Eth or ERC tokens and allows you to interact with Dapps on a web browser.
Trust wallet is a non-custodial wallet acquired by Binance. It supports multiple cryptocurrencies. It even supports ERC tokens and lets you interact with Dapps.
Exchanges
Exchanges based on Dapps, also called DEXs (Decentralized exchange) are gaining popularity as it does not involve centralized servers. Popular DEXs are-
Kyber is an on-chain token exchange platform. It is an open-source project that lets you integrate token swap functionality in your project.
0x is an open protocol that enables the exchange of assets on the Ethereum blockchain. It is an open-source project based on which many well-known projects like Radar, Paradex has been developed.
Airswap is also an open-source, decentralized exchange and a trading platform that lets you exchange and trade Ethereum assets hassle-free. Traders have the power to add or remove liquidity through a pool of products.
Games
Dapps game is trendy among Ethereum enthusiasts. Gambling games that weren’t trusted by many in the start, now gaining popularity. Let’s have a look at some of the popular Dapp games.
My Crypto Heroes is an arcade game built atop Ethereum blockchain. It lets you play with historically inspired heroes, go on adventures to find rare items and battle against other players for rewards.
Axie Infinity is a fantasy pet land where players can raise, battle, and trade, mysterious beings called Axies. Approximately 140,000 Axies exist in the world, and they can be bought using Ether.
Cryptokitties is an Ethereum based game that lets you collect, breed, and sell virtual cats called Cryptokitty. Kittyverse, a collection of games that you can play with your kitties.
Banking and Financial Services
The main motive behind Bitcoin was to make financial services open and decentralized. Dapps, along with cryptocurrency, is here to make banking and financial services automated in a decentralized environment. Let’s see some of Dapps which comes under this category-
Aave is an open-source, non-custodial platform that provides banking services like interests in deposit and borrowing of crypto assets.
ETH Bank is an investment platform that optimizes the investment model extended to the blockchain domain and implemented through Ethereum. They use AI along with high-frequency quantitative trading investment models to bring high returns.
Bank of Tron is a decentralized bank built upon Tron blockchain. Its smart contract generates 3.7–6.7% dividends per day based on the user’s investment. Other than that, it is compatible with TronLink or TronPay and can be even used in mobile through Banko Wallet.
Wrapping up…
The future of Dapps seems bright and full of possibilities. Many sectors have yet to see the implementation of Dapps. Platforms like Ethereum, Tron, and EOS are encouraging developers to deploy the advantages offered by Dapps to produce innovative use cases.
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