What are decentralized applications? (DApps)

This shortcut often goes with us and we may have mentioned in previous articles what it means Decentralized Applications or decentralized applications, but many of us are not yet aware of what these applications and how they exist in real life and practice and what are the benefits.

This shortcut has many meanings and things to clarify. Let us review them together to understand all aspects of these applications.

Define decentralized applications DApps

Decentralized Applications refers to digital applications or programs running on a blockchain or P2P network rather than a single computer, outside the control or jurisdiction of a single authority. Bitcoin is the first decentralized application in the world.

These applications are still in their early stages so it is difficult to shorten their definition in a single line that includes its four main aspects, so we have to illuminate them individually.

Open Source

Decentralized applications are open source applications, meaning that their source code is publicly available for use or modification, but the key feature is independence and unanimous consensus, meaning that changes require the consent of all or the majority of users to be installed and approved.

Decentralized Nature

Decentralization here means that DApps store everything on a decentralized blockchain chain or any encryption technology to save the application from the dangers of central authority and ensure independent nature.

What do we mean by a central authority? A simple example can be illustrated, Twitter is a central system that works for a large number of users around the world at the same time, but in the background, on the other hand, this application is owned and managed by a single central only.

Examples of decentralized applications are blockchain applications such as Bitcoin and P2P applications such as BitTorrent, which are multi-user applications on both ends.

In this context, we can clarify the change in the application of Twitter, for example, if it is decentralized, the tweets will become owned only by the owner and can not be deleted by anyone, even the founders of the application can only the sender – the owner of the tweet – to modify them, but the old will remain forever.


Because the application is based on decentralized blockchain chains, it is necessary to verify the authentication of records on the network by encryption tokens or any form of digital asset that has value. This verification is called Incentivization.

The Algorithm algorithm or Protocol

Users of the app or the so-called app community should agree on a certain encryption algorithm as proof of value, for example, Bitcoin uses Proof of Work (PoW) as well as Ethereum but plans to upgrade to hybrid PoW / Proof of Stake (PoS) 5 in the future.

Decentralized applications in the real world

Decentralized applications are divided into categories according to the context in which they are used and employed:

Transfer and management of funds

These applications facilitate money transfers, management, and even lending to ensure faster currency completion by eliminating the middleman’s presence as well as enhancing security through a consensus mechanism that cannot be changed without majority approval.

Business Management

Companies benefit from decentralized applications to streamline operations without human intervention thanks to Smart Contracts, which are used to resolve critical issues and improve their work efficiency.

In an example, logistics or logistics companies – companies that are interested in moving goods from production areas to consumption zones – can integrate Radio-frequency identification (RFID) chips into their shipments. And the buyer.

DAO decentralized self-organizations

Decentralized autonomous organization (DAO) is an entirely new phenomenon that is the beginning of the spread of unidentified organizations without leaders that can act as companies through the rules defined by programming languages on the blockchain.

These rules are many and varied, including who can be a member of this organization, how many members can vote, which business sector you will work in, and how token values ​​will be exchanged. All this and other information is programmed on the chain of blocks that will occupy the organization.

These organizations cannot be stopped as soon as they are launched and can work around the world without any problem with the administration on Blockchain.

Decentralized applications DApps or traditional applications

Decentralization is a means to ensure safety and speed, is non-manipulative and its records are not adjustable. Since it relies on a secure blockchain network unlike traditional centralized applications, these DApps are highly secure and immutable through intrusions, so developers often tend to these days and can be summarized as follows:

  • Faster than its traditional counterpart and easy and fast payment processing process does not need a gateway to accept funds.
  • High-security levels due to smart contracts associated with private keys make penetration very difficult.
  • Easily hide anonymity without any problems in completing various operations.
  • Reliable data records so that users can access the public blockchain to verify all transport information.