Decentralized application (dApps) in Blockchain |How does it work ? 5 Reasons to build dApps

 Decentralized application (dApps) in Blockchain |How does it work?

Hey everybody! Welcome! Let’s start by defining what Blockchain Apps are.

To be clear, by referring to an application or an app, we don’t only mean a smartphone app.

We’re utilizing the dictionary definition of the term which is: a program or a piece of software designed (…) to fulfil a particular purpose of the user.

It can refer to a desktop computer program or a mobile app, but we’ll also include DApps and some utility and backend applications. 

Although our focus will be primarily on apps that are built on a blockchain, we’ll also include ones that help you interact with distributed ledgers. We’re not going to dwell too much on Smart Contracts, as we consider them more of a building block than a complete app. 

What is the difference between Smart Contracts and DApps, then?

A Smart Contract is a small piece of code executed on the blockchain in a decentralized fashion. Essentially it’s a logical contract that comes to life when the pre-determined set of conditions is met.

What’s beautiful about the concept is that it doesn’t require any trust, it’s executed automatically and there’s no cost associated with that process.

In addition, the design of a smart contract should be simple and serve only one function. There also shouldn’t be too much logic in such a contract.

The more complex the system is the more room for mistakes there is. Therefore, a smart contract should use a simple scripting language that can be easily reviewed verified and validated.

A contract that is too complex will simply not scale on the blockchain.DApps, on the other hand, are entire infrastructures that can actually be built on several smart contracts.

These are decentralized, peer-to-peer applications that do not run on a single system or server. Although there might be a centralized server involved, it is not used to house the application, 

but merely to help it interact with the blockchain. If the server goes down, the application remains operable, as the data is coming straight from the blockchain.

Moreover, a smart contract doesn’t need to have a user interface, but a DApp usually does. Although we still haven’t seen a breakthrough success for blockchain apps, there are actually a few different solutions already available.

They all serve different purposes, from simple utilities, through games, exchanges to social networks. Among utilities, we should definitely mention tools such as Metamask, Status or CoinbaseWallet, formerly known as Toshi.

Metamask is simply a browser plugin that allows you to interact with Ethereum inside your favourite browser. It makes it possible to run Ethereum DApps in the browser without running a full Ethereumnode and the goal is for everyone to access Ethereum easily. Metamask also allows people to get, receive, or send Ethereum directly by buying it or sending to a target public key.

Status and Brave are browsers that help users interface with various blockchains.

Status is a mobile-focused app with the possibility for messaging and sending funds through messengers. Additionally, it makes it relatively easy to access other DApps such as Argon, 

Ethlanceor Gnosis, but also to develop and share your own DApps.Brave is primarily a desktop and mobile browser with a focus on speed, privacy and security with the added option of supporting publishers by token micropayments.

Blockchain-based games are one application of DLT that has gained significant public recognition. Blockchain games, as the name suggests, are games that use blockchains to power at least part of their gameplay.

Whereas in traditional games all player information is stored on a centralized server owned and operated by the developer, a blockchain game saves its status and items on a decentralized ledger.

That is especially important when it comes to the possession of unique in-game items. Probably the most well-known blockchain game is Crypto Kittiesthat allows you to breed DISTINCT and completely unique digital cats using smart contracts.

Another interesting example includes EOS Knights: a mobile app that runs on EOS. A notable example of how blockchain can be utilized in a gaming context is Decentraland, a virtual reality platform built on Ethereum.

All assets inside Decentraland, including real-estate, are non-fungible and are permanently owned by their buyers. The platform also has its own ERC20 token called MANA. Even though, the world is still not accessible for users, if it launches it could serve as an interesting game development platform.

When it comes to exchanges operating on a blockchain, for the purpose of this video, 

we’ll ignore all the centralized exchanges and focus on decentralized ones. Even though a fully decentralized exchange still remains an idealistic vision due to issues with scalability and interacting with fiat currencies, a few partially decentralized exchanges exist.

Their primary focus lies in making peer-to-peer transactions without having to entrust digital assets to a third-party service.

Some examples include Shapeshift.IO, Altcoin.IO. or Changelly, which aggregates prices from different exchanges.

Last but not least, let’s look into social platforms. Typically, blockchain-based social media emphasize privacy, lack of censorship and have a built-in token integration.

A truly unique selling point for decentralized social platforms is the fact that the users really own their own data and—more importantly—content.

If you consider social media giants such as Facebook or YouTube, the creators there do not really own their content; the platform can decide to take it down, block it in certain territories, demonetize, or block comments.

DLT-based social platforms emphasize content ownership and lack of censorship. The network that has received probably the most notoriety was Steem It that promised to revolutionize content monetization. As of 2019, it’s hard to tell that the revolution has happened, but the platform remains active. Other examples include Indorse, Minds or Peepeth. Many of those networks require using Metamask, a dedicated DApp browser or sometimes use their own dedicated desktop app.

In a few moments we’ll investigate the potential areas of interest when it comes to blockchain apps, but right now, let’s analyze the underlying architecture.

The two most popular protocols are Ethereum and EOS. It comes as no surprise that most blockchain apps are built on Ethereum, but it is EOSDApps that are more popular with the users. Ethereum remains a fully decentralized application platform that runs on a Proof-of-Work consensus model while EOS runs on Delegated-Proof-of-Stake.

It is sometimes staid, however, that EOS gives up a large portion of decentralization in order to facilitate scalability and speed of processing. For Ethereum, the primary development tool is their own programming language,

 Solidity. There is an argument that Solidity is reminiscent of Java Script and generally uses a lot of java inside its ecosystem. This makes it easier for new developers to adapt and participate in Ethereum.

EOS on the other hand is primarily focused on C++but it can also take advantage of any Web Assembly language, which some argue lowers the barrier to entry for developers even more. As of Q1 2019, TRONhas also emerged as a viable competitor to the two aforementioned DAPP platforms. Justin Sun, who leads the TRON project, recently quoted a dapp. review report stating that TRONhas indeed became the most popular DApp platform among users.

If you want to check our episode on TRON, click here. So, in what areas do Blockchain-based apps have the most promise? Currently, the most popular category with developers is gaming, but the users themselves are now really interested in storage.

When it comes to storage, the advantages of blockchains are evident. The permanent, immutable ownership and distributed storage have many benefits. Adding the ability to offset storage cost by participating in the network as a node can make it even more attractive.

It really shouldn’t come as a surprise, especially considering that file storage and file sharing were the first real-life use cases for decentralized technologies. It was, after all, years before blockchain even became a thing that file-sharing services such as Kazaa or BitTorrent were incredibly popular among users.

Because storing data on the blockchain itself is quite expensive, decentralized storage is being investigated as a potential solution. It lets you store application code and data off the main blockchain in nodes connected to the main

blockchain. 

Instead of nodes storing everything, they only hold data that is frequently requested on the network and leave other data in the cloud. As mentioned before, another interesting use case for DLT is blogging and content creation. 

Even though Steem and Dtube had probably the most mainstream success as blockchain-related content platforms, the real advantage DLT brings to creators is content ownership and copyright protection. 

If you consider recent YouTube content ID exploits, such as a YouTube musician having their own song struck down by Content ID after someone reposted the song, having the ability to immutably prove content ownership would be a massive advantage for creators. 

Another fascinating way users can really take advantage of immutability is charity. A big concern with big charitable organizations is where the money you donated ends up. It is also an argument frequently used by people who oppose certain charitable organizations; we sometimes see claims that so-and-so has built a mansion from the proceeds of a charitable collection. 

With blockchain, this might no longer be the case. Imagine that you’re paying with a crypto token and then you can precisely track what's happening with your donation. One more interesting application that we should look into is employment. 

The Indorse app is considered to be a blockchain version of LinkedIn, where skills are validated anonymously by other participants. Then, they are confirmed publicly on the candidate’s profile. 

In another example, the distributed nature of a network makes it possible for freelancers and contractors to cooperate seamlessly without an intermediary. 

Of course, there are still many challenges connected to a full deployment of blockchain-based apps. After all, there are still reasons why we haven’t seen mainstream adoption. Some of those challenges involve having to use a Metamask or a dedicated browser to access some of the services. Other might include the necessity to hold certain tokens in order to interact with the app. 

But, the biggest challenge by far when it comes to blockchain apps, is scalability. Ethereum for example is still relatively slow as an app platform because of its Proof-of-Work consensus model. 

There are currently multiple ideas on how to overcome this issue while maintaining decentralization. These solutions include sharding which is breaking the network into smaller blockchains to distribute the computational load, as well as sidechains designed to offload some of the computational burdens outside of the main blockchain. 

One other solution that Ethereum is exploring heavily at this moment is Casper, which is an attempt by Ethereum to move to a Proof-of-Stake consensus protocol.EOS, on the other hand, which is clearly optimized for speed, is often criticized as being susceptible to security risks and reliability issues.

A Delegated Proof of Stake consensus mechanism, which is based on only 21 delegated “block producers” could be prone to a 51% attack if a hacker managed to take control of only 11 blocks.

Which brings us to another valid concern: security. One of the biggest issues here has to do with smart contracts. Due to their immutability, which is, of course, one of their unique selling points, if a vulnerability is discovered in a contract after it was published to the blockchain,

 it will be extremely difficult to fix. One last potential issue that we should address when talking about blockchain apps is cross-chain compatibility. 

In order for the users to get the most from the applications, they need to be able to communicate with the outside world. 

Because of the competitive nature of this early blockchain market, it is difficult for developers of various application platforms and ecosystems to work together to ensure compatibility. 

There are a few solutions available, but the general consensus is that lack of interoperability is one of the obstacles to adoption. 

All in all, blockchain apps still have a huge promise to revolutionize digital user experience in multiple fields. 

Our team here at Blockchain central is of course most interested in developments connected to content creation, but we’re also closely following all the other developments. 

So, if you want to stay up to date, make sure to subscribe to the channel. 

Before you go please note that this content neither represents financial, legal, or tax advice, nor is it supposed to be understood or interpreted as a solicitation to buy or sell any securities, coins or tokens. 

Thank you so much for watching. If you liked this video, make sure to hit that like button and don’t forget to subscribe to Blockchain Central to never miss a beat! See you in the next one!

5 Reasons to build dApps 

 Let's talk about 5 reasons to build decentralized apps. 

Decentralized apps are apps that are peer to peer no central server whatsoever. the users connect to each other directly. The first reason is that you would own your data. The Web has become totally centralized. 

That means a handful of apps own all of our data. All of our texts and images and videos. 

Take WhatsApp for example. WhatsApp was acquired by Facebook for 22 billion dollars. when it only had 35 engineers. 35 dudes owned 500 million users data. 

FB didn't buy the 35 engineers, 

They bought the 500 million users data that they owned and profited from. The profit that those 500 million users should've got a little share of, but didn't. 

In a decentralized app, you would maintain ownership of your data. People would pay each other for data instead of one group profiting off of all of it. 

Your data is your most valuable asset in the new data economy. When robots begin to replace all labour based jobs which are half of all current jobs. 

The value that you provide to people, that no robot can ever take from you is your data. Your five senses, your unique perception of the world that you output with tweets and pictures and video. You should be paid for it! 

With decentralized apps, you would be because you would own it. We could use cryptocurrency to pay people for their data or pay people for hosting our own data. 

It would create a new economy where everyone is earning money online. Everyone! Everyday! Just by being on the internet, by participating, you are contributing to the data economy. 

The second reason is the increased data reliability. In a centralized app, all data is stored on a central server. 

If that central server gets shut down for any reason, that data is lost forever. So if you uploaded a really precious photo to dropbox and dropbox got hacked, which has happened before, that photo is goneThe link to it is broken forever, it's just not sustainable.

 In a decentralized app since there is no central point of failure, you could either choose to store your data securely yourself. Or have your data replicated across many different clients? It moves us towards a Permanent Web.

 A Web where links never did stupid 404s. The third reason is the faster data transfer. We're moving into a new era of data transfer soon we're gonna be sending huge files across the Web i am talking petabytes. Centralized apps only allow you to retrieve data from one central server. Which can take forever to download or stream. Especially if its across the world.

 In a decentralized app, if you wanna load a website, instead of your computer requesting it from a server across the world, it'll find the nearest copy. Maybe that random dude sitting next to you in chemistry has it on his laptop. 

And your computer would retrieve it from there directly. 

And if multiple people had copies of it, your computer would request copies of it from all of them at the same time. The more peers the faster the download. Videos would load so much faster 

You could download games 10 times faster. It's just better in every way.

 The fourth reason is that it couldn't shut down. Centralization means governments can block a website from reaching users in its country for whatever reason. The Chinese government has easily blocked Facebook from its citizens that 20 per cent of the global population. 

And recently the Egyptian government easily shut off the Internet to stop people from protesting. Isn't that crazy?? And if a data centre goes down or an ISP has an outage.

You're out of luck. A decentralized app could never be shut down by anyone. Even if a government shuts down internet access during protests, people could still communicate with each other offline. in their local area networks by connecting to each other directly.

 The fifth reason is its the Wild West of software. We've barely begun to unlock the potential of decentralized technologies like BitTorrent and Bitcoin. The first people to make successful decentralized apps will be remembered for many years. and will provide a huge amount of value to the world if you'd like to learn more about decentralized apps, check out the links in the description below. And if you'd like to see more technology articles please subscribe. I'd really appreciate it. And as always, thanks for reading!