By now we are all accustomed to using mobile apps like X (Twitter), Facebook, and YouTube. If you are a creator or if you are a frequent user of these apps, you have likely experienced some dissatisfaction with how the apps are run. You may have privacy concerns or you might not be wholly satisfied with the lack of transparency with regards to how your data is used. That’s where decentralised applications or “DApps” come in. In this blog, we will consider how DApps can inspire new business models and also impact user experience and society as a whole.
While sharing some similarities with your traditional apps, DApps differ in that they have a completely different philosophy behind their design architecture. DApps are built on decentralised networks and are based on the principles of openness, freedom, and data sovereignty. DApps are different from traditional apps as they do not rely on a central server to run them. Instead, they use smart contracts and peer-to-peer networks to run their services, which allows users to interact with the applications without having to trust third parties like Apple or Google. Users can interact directly with the network itself.
Here are some of the benefits of using DApps:
- DApps are open source. This means that anyone can review the source code. This increases overall transparency. While most users will remain completely oblivious to how apps like YouTube or Facebook use their algorithms to suggest videos or offer friend recommendations, DApps will be fully transparent so that users can be in control of where their data moves and how it is utilised.
- DApps are highly resistant to censorship. In cases where X (Twitter) and Facebook have banned users from expressing their views and opinions, DApps can circumvent this. DApps areﾠcensorship-resistantﾠand this is particularly beneficial for decentralised finance (DeFi) apps as they remove the barriers to entry of traditional finance products where various intermediaries block access to certain types of people and intervene in transactions. This is becoming increasingly important as money transitions to becoming more digitized.
- DApps areﾠresilientﾠagainst attacks and cannot be shut down. While centralised platforms like Facebook or Instagram can have their servers crash and go offline, DApps will be resilient to such perils. As DApps run on the blockchain and may be powered by hundreds if not hundreds of thousands of computers, this will make them incredibly robust and secure.
The rise of DeFi is yet another signal that users are more concerned with full ownership of their digital assets and that they are in search of methods to freely borrow, lend, and stake their money without the need to go through third parties. More and more developers are building DeFi applications that use blockchain protocols to open up new avenues for people to invest their money and serve this growing market.
Indeed a recent study carried out by the Blockchain Examiner predicted that the DApp market could reach $21 billion by the end of 2025. In the future, we predict that developers and businesses will seek to create more decentralised applications that give users back some control over their data and make it easier for them to manage their digital assets without having to rely on an outside entity.
It is clear that blockchain technology is the new frontier for developers and users alike. As DApps become more widely adopted and education increases, we can expect to see an entirely new, decentralised web emerge that will disrupt our current models of the internet and alter how we use it forever.