What is a decentralized app: how DApps differ from traditional apps

Picture an app that isn't controlled by a single company and allows you to take back control of your data and privacy. This is what decentralized apps (DApps) are all about. Whether for decentralized finance (DeFi), gaming, or social, there’s a DApp for everyone. As such, the technology underpins many of today's most positively disruptive projects.

In this article, we'll explore what DApps are, how they compare to traditional apps, and how you can start using DApps today.

TL;DR

• DApps run on blockchains, giving you more control over your data and privacy.

• Unlike traditional apps, DApps are powered by nodes, not servers. This makes them resistant to censorship and more secure.

• Smart contracts in DApps automate everything, from simple transactions to complex operations, without needing intermediaries.

• While DApps give more control, they can be slower and less scalable than traditional apps.

• With blockchain growing, DApps are becoming more popular, and could provide an alternative to traditional apps

What are DApps?

A decentralized application (DApp) is a piece of software that operates on the blockchain or peer-to-peer network, rather than being controlled by a central entity. Imagine the apps you use on your phone every day, but instead of them being hosted on a company’s server, thousands of independent servers run them worldwide.

This makes DApps secure, private, and censorship-resistant. They’re normally built on platforms like Ethereum, Solana, and more recently, Bitcoin. They use smart contracts — self-executing contracts with the terms of the agreement written directly into the code.

These contracts automatically handle everything from simple transactions to complex operations, without a third-party. Picture a decentralized version of a ride-share app. Instead of a company like Uber managing drivers and riders, the platform is controlled by a blockchain, and the smart contracts handle the payments. Riders and drivers interact directly, making the service more transparent and fair.

DApps offer you a way to have more control over your data and how you interact with the platform. While most DApps are tied to cryptocurrencies, they have the potential to be used in social or gaming. Ethereum DApps tend to be a starting point for most developers, but Solana and Bitcoin are gaining traction for their speed and lower cost.

Put simply, DApps show a different way to make and run applications. Blockchain technology gives you more control over your data, and lets developers bring their ideas to life.

DApps vs apps

When comparing DApps to apps, the main difference is in how they’re managed and controlled. Apps rely on centralized servers, owned by a single entity.

This means one company manages and stores your data, transactions, and operations. However, this also makes conventional apps vulnerable to issues like data breaches or server downtime. As a result, you're left with no choice but to trust that the company running the app will act responsibly.

DApps operate on decentralized networks and are usually built on a blockchain. Instead of relying on a single server, DApps are powered by multiple nodes (computers) located across the world. The nodes work together to keep the DApp running.

This setup puts privacy and control in your hands, because the DApp has no central authority. Think of a social media app you typically use. Here, the company normally decides what does and doesn't meet its terms of service. With a DApp, that decision typically falls to the community through consensus, making the DApp more transparent.

However, DApps do bring their own set of challenges. Due to their decentralized nature, they often face issues around scalability and slower transaction speeds compared to apps. While you get more control of your privacy with DApps, they may not match the speed of an app. The trade-off is centralized vs decentralized, control vs freedom. But as blockchain technology becomes more scalable, DApps will continue to grow and challenge traditional app infrastructure.

What are the features of DApps?

Here are some of the core features of DApps that make them stand out as a viable alternative to conventional Web2 applications.

Open-source

Most DApps are designed to be open-source, meaning their code is available for anyone to view and help improve. This provides transparency for the developer community. Individuals can verify that the code for the DApp does what it claims to do, while developers can contribute to the code.

Decentralization

This is what sets DApps apart from apps — there’s no central authority. Instead of having a single server, DApps are powered by a network of independent computers. This helps to reduce censorship and downtime, making sure the DApp remains available to everyone.

Smart contracts

Smart contracts are essential for most DApps. These are self-executing contracts written in code and automatically enforced. Once the contract is deployed, it can't be easily altered, giving the community peace of mind regarding security.

Cryptographic tokens

DApps use crypto tokens for transactions, or access to features. These tokens can also be used for staking within the DApp. These assets give the community more control and flexibility when interacting with the platform.

How to start using DApps

Getting started with DApps is relatively easy. The hard part might be choosing from the vast number of DApps available today. Here are the main steps to take.

Set up a crypto wallet

To use a DApp, you'll need a crypto wallet, which is your digital passport to the decentralized space. You can save time by using a multichain wallet, where you can access different DApps from blockchains like Ethereum or Solana.

Fund your wallet

You'll need to add some crypto to your wallet before you can start exploring DApps. If you want to check out an Ethereum DApp, you'll need ETH to cover the gas fees. You can purchase ETH on an exchange and transfer it to your wallet.

Connect your wallet to a DApp

Once you add crypto to your wallet, it’s time to choose a DApp to interact with. You can dabble in DeFi, gaming or explore NFTs. When exploring DApps you should see a "connect wallet" button. After you connect your wallet, you’ll get a prompt to authorize the connection. After that, you're in.

Stay secure

Always make sure you do your own research and verify the DApp you're using. Since there's the risk of scams and hacks, stick to well-known platforms, and check out our community forms or explore the GitHub repositories to ensure the DApp’s smart contracts are trustworthy.

The final word

DApps offer an alternative to traditional apps by giving you greater ownership, privacy, and transparency. They’re built on blockchain technology, run on peer-to-peer networks, and are autonomous thanks to the use of smart contacts, eliminating intermediaries. DApps have their share of challenges, which typically include relatively low speeds and scalability restrictions. However, DApps provide the advantage of security through smart contracts and censorship resistance. As Web3 continues to onboard more users and its underlying technology grows in sophistication, we can expect the DApp ecosystem to continue to expand, offering new use cases to Web3 participants.

Interested in learning more about the potential from DApps? Read up on BEVM, which allows powerful DApps to be built on the Bitcoin network. And, check out our article on Ethereum 2.0 and what it means for DApps.