What is a dApp (distributed App)?


dApp Introduction

The emergence of dApps

A new model for building successful and massively scalable applications is emerging

Why should you embrace dApps?

A dApp is an open source application that allows every individual that contributes to its development, design, and publishing to partake in Token contributions. A decentralized application does not require a leader or central node that gives restrictions.

Definition of a dApp

Any dApp must adhere to the following criteria:

1. The application must be completely open-source, it must operate autonomously, and with no entity controlling the majority of its tokens. The application may adapt its protocol in response to proposed improvements and market feedback but all changes must be decided by consensus of its users.

2. The application's data and records of operation must be cryptographically stored in a public, decentralized blockchain in order to avoid any central points of failure.

3. The application must use a cryptographic token (bitcoin or a token native to its system) which is necessary for access to the application and any contribution of value from miners / farmers should be rewarded with the application’s tokens.

4. The application must generate tokens according to a standard cryptographic algorithm acting as a proof of the value the nodes are contributing to the application (Bitcoin uses the Proof of Work Algorithm).

Bitcoin as a Dapp

Bitcoin has been effective in solving the problems that arise from a trust- less and scalable electronic cash system by using a peer-to-peer, distributed ledger, the Bitcoin blockchain. In addition to being a peer-to-peer electronic cash system however, Bitcoin is also an application that users can interact with through computer software. But most importantly, Bitcoin is a decentralized application.

Please see below why:

1. All Bitcoin software applications are open-source, no entity (government, company, or organization) controls Bitcoin and all records related to the use of Bitcoin are open and public.

2. Bitcoin generates its tokens, the bitcoins, with a predetermined algorithm that cannot be changed, and those tokens are necessary for Bitcoin to function. Bitcoin miners are rewarded with bitcoins for their contributions in securing the Bitcoin network.

3. All changes to Bitcoin must be approved by a majority consensus of its users through the proof-of-work mechanism

Classification of Dapps

There are several characteristics according to which decentralized applications can be classified. For the purposes of this paper, we will classify Dapps based on whether they have their own block chain or they use the block chain of another Dapp. Based on this criterion, there are three types of Dapps.

Type 1: decentralized applications have their own block chain. Bitcoin is the most famous example of a type I decentralized application but Litecoin and other “alt-coins” are of the same type.

Type 2: decentralized applications use the block chain of a type I decentralized application. Type II decentralized applications are protocols and have tokens that are necessary for their function. The Omni Protocol is an example of a type II decentralized application.

Type 3: decentralized applications use the protocol of a type II decentralized application. Type III decentralized applications are protocols and have tokens that are necessary for their function. For example the SAFE Network that uses the Omni Protocol to issue ‘safecoins’ that can be used to acquire distributed file

Haley Welsch
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