Blockchain-based decentralised applications (dApps) have been getting more popular over the last few years. They are generally more secure, transparent, and community-driven since they are built on decentralised systems rather than being controlled by one single entity.
Benefits of Decentralised Applications
It is not a coincidence that dApps are growing in popularity – this type of application has several advantages.
Decentralised apps are typically more secure because they are built on top of distributed ledger technology (DTL), such as blockchain. It works without a central point of control or authoritative entity, which makes it more resistant to cyberattacks.
Additionally, DTL keeps data secure: by using cryptographic algorithms, it is almost impossible to tamper with any record in the ledger.
Increased transparency and trust
Decentralised apps have another thing going for them compared with traditional applications: their open-source code.
Open-source apps are more transparent and trusted by the community because anyone can access and review the code to look for vulnerabilities or malicious code that might jeopardise the app’s security. Analysing the code allows users to see how the data is processed, which conveys a sense of trust to users that do not exist in proprietary apps.
Elimination of intermediaries and associated fees
dApps also operate more directly and cost-effectively because they do not rely on intermediaries. Traditional apps usually partner with payment processors to enable secure in-app transactions, but dApps achieve that through blockchain, where users can transact directly between them.
Removing intermediaries from the equation decreases app usage costs by eliminating associated fees and increases the speed of transactions, as users do not need external permission.
Ability to execute smart contracts
Smart contracts contain the terms of an agreement and are written directly into code. They make exchanges easier because they execute automatically when the agreed-upon conditions are met, relieving you from spending money on intermediaries and wasting time with bureaucracy. And because they are created within a blockchain, they are secure and transparent, two words that go very well with making a business transaction.
Understanding the Challenges of Decentralised Applications
But despite corresponding to demand, dApps still face a few issues that block them from gaining a more significant market presence.
The vast majority of the population is not as used to decentralised systems as they are to traditional formats. In fact, these systems are often perceived as unknown and complex.
Moreover, working with and maintaining blockchain-based systems requires some expertise, as their open nature can make it more difficult to detect and resolve technical issues.
Another known problem of blockchain based-systems is limited scalability. Blockchain uses a process called consensus mechanisms, which requires nodes to agree on the state of the ledger. However, it limits the number of transactions allowed during a given period. This results in slower transaction times, compromising the performance of dApps working with fast and numerous transactions.
The lack of specific regulations on decentralised systems and cryptocurrency affects their credibility and reputation and creates uncertainty among developers and users, as it is not clear what their rights and duties are. Naturally, this fear takes a toll on the adoption of dApps.
Future of Decentralised Applications
Decentralised applications have what many people look for: privacy, security, and transparency. Their flexibility and cost-effectiveness also make them appealing to businesses. That gives them the potential to grow strong in the future and even to cause the disruption of traditional systems.
An important contributing factor to the growth of dApps is the emergence of new application platforms and development tools that address some of the main challenges related to these apps, such as the scalability issue. These advancements make it easier to develop and deploy decentralised apps.
But in order to keep gaining ground, decentralised apps need to be at the centre of continuous innovation and evolution to become better, more relevant, and competitive.
It is not surprising that decentralised apps have been getting more popular. Their benefits are clear and more relevant than ever: they keep your data and assets secure, promote transparency and trust, do not need intermediaries and additional fees, and facilitate transaction agreements through automated contracts.
Before they reach their peak, some challenges need fixing, such as their technical complexity, limited scalability, and legal insecurity.
However, the future looks promising for decentralised apps – and now is a great time to start exploring the world of blockchain-based systems.