According to a recent report by Suffescom, 2021 may have been the most important year for decentralized applications (DApps). The number of wallets interacting with decentralized applications and the trading volume reached an all-time high. Games, non-financial transactions, and digital entertainment (considered the industry’s three primary categories) all exhibited an upward trend, and 2022 appears to be a good year for continued growth.
Several product owners are looking to create their own, and it is frequently unclear whether a DApp is suitable for a given product. This blog post is to return to basics. We will discuss what a DApp is, how it differs from a traditional app, and its key benefits and pitfalls. We will also demonstrate how 10Clouds can assist you with decentralized app development.
What is a DApp?
As a result of their decentralization, DApps are exempt from the control and interference of a central authority. DApps have been created for various industries and applications, including gaming, finance, and social media.
How does a DApp differ from a regular app?
There are several significant differences between decentralized and conventional applications:
Centralized Vs. Decentralized
Unlike traditional applications, which run on a single network of computers, DApps operates on a decentralized, peer-to-peer network that is not controlled by a single entity.
Differing levels of User Trust
Decentralized applications provide the user with control and ownership of their data and assets, making them potentially more trustworthy than traditional apps in which user data is stored centrally.
Differences in Speed
DApps are slower than conventional applications. According to Blockchain developers, such applications can currently process no more than 15 transactions per second. However, given the current expansion of the industry, this is likely to change very quickly.
Differences in Security
DApps are significantly more secure than traditional apps. First, the records they store cannot be modified because they are decentralized. While users’ wallet addresses and interactions are reserved and visible to everyone during use, they are protected.
Differing Costs of Development
When developing a standard app, you must consider Cloud server fees, maintenance costs, and other pricing factors. Not so with DApps, where product owners know that the price includes development, deployment, and upgrade.
The classification of decentralized apps
Currently, there are three recognized types of DApps:
These DApps utilize a blockchain, such as DogeCoin or Bitcoin.
Type 2 DApps utilize the blockchains of Type 1 DApps, but are defined as protocols and require tokens to function. This is exemplified by the Omni protocol, which enables the creation and utilization of smart properties, user currencies, and other smart contracts. OMNIs serve as a connection between bitcoins (BTC), smart properties, and smart contracts built atop the Omni Protocol.
Type 3 DApps use type 2 protocols. Take the SAFE Network as an illustration of a Type 3 application similar to the Omni example. The SAFE Network is the first autonomous data network in the world; its mission is to protect everyone’s data and ensure that it remains accessible in perpetuity. It enables the creation of websites and applications that are resistant to censorship. It utilizes the Omni Protocol to generate SAFEcoins.
The Importance of Smart Contracts in DApps
The buyer and seller agreement terms are written directly into code lines. The code and arrangements are distributed and decentralized across a blockchain network. All transactions are traceable and irreversible. Smart contracts reduce conflict, save time, and are cheaper, faster, and more secure than conventional payment systems.
What are the benefits of DApps?
Some of the most important benefits of decentralized apps have already been mentioned in the section comparing DApps and centralized apps. Still, it is important to summarise them all:
DApps are more robust and adaptable because they do not require connectivity to centralized servers to run. This allows businesses to ensure minimal disruptions and downtime. In addition, once smart contracts are deployed on the blockchain, the entire network will be able to serve clients wishing to interact with the contract. This indicates that hackers cannot launch attacks against specific DApps.
Safer and more transparent data
As DApps are hosted on a public blockchain, user data cannot be concealed, resulting in greater transparency. In addition, once information is added to the blockchain, it is permanently stored, making DApps resistant to modification.
Resistance to censorship
No network actor can prevent users from submitting transactions, reading blockchain data, or submitting applications. This effectively means that DApps are censorship-resistant.
A smart contract ensures execution predictably, so you do not need to place your faith in a central authority as you would in a bank. This is all related to the increased credibility of DApps.
What are some of the downsides of DApps?
However, DApps also have some disadvantages that you must be aware of. Here are the best examples.
Difficulty of maintenance
It can be more difficult to modify code published on a blockchain than to modify standard code. This makes it more difficult to update and therefore maintain DApps. It is slightly more difficult to update DApps after deployment, even if bugs have been discovered in a previous version.
Scaling can be expensive for DApps. Each node processes and stores every transaction to attain a certain level of security, integrity, and transparency. It has been estimated that DApp overheads can be approximately one million times that of conventional computation. Due to the rapid pace of advancement in the field, this number is likely to decrease over time.
Creating a user experience that competes with traditional apps is still difficult (although not impossible). It is especially problematic when attracting new market entrants, as they require a tool stack that enables them to interact with the blockchain effectively. They need highly effective UX writing within an engaging user interface to be guided through the process.
This is problematic. When a DApp uses excessive computational resources, it causes network bottlenecks. This issue may be resolved in the not-too-distant future, but there are still several instances where congestion causes the pool of unconfirmed transactions to spiral out of control quickly.
A DApp Example – Emergent
We recently collaborated with Emergent, a company developing a gold-backed stablecoin and a verified gold supply chain. 10Clouds assisted Emergent in expanding its blockchain and mobile teams and worked on the wallet application’s core components.
We’re excited to continue working with Emergent as it expands; we’re currently supervising the architecture; managing, monitoring, and improving the infrastructure; managing the selection and implementation of third-party integrations; developing new features for the mobile and web applications; and deploying recent changes to the production environment.
How 10Clouds can guide you through DApp development
At 10Clouds, we are proud to employ product delivery managers (PDMs) who are by your side throughout the entire DApp development process, from conception to implementation. Here are the primary steps of the process we would use to guide you through the DApp development process.
1. Establishing the user problem that you’re solving
This could also be considered the use case of your DApp. It is essential to brainstorm the identified customer pain points and determine whether a DApp is likely the best solution. Our team of skilled PDMs and blockchain developers will assist you in deciding whether a decentralized application (DApp) or a traditional application is the best solution.
2. Workshopping and Discussion
Our team offers blockchain workshops and live webinars to assist you in comprehending blockchain technology. We demonstrate how blockchain technology can assist you in scaling your solution and disrupting the market. In this workshop, we also assist you in creating/expanding your roadmap by the solution’s requirements and potential. We help you in estimating the phase-by-phase duration of the project’s development.
3. Selecting the right blockchain stack
We investigate and analyze your solution and requirements to assist you in selecting the optimal technology stack for application development. There are numerous blockchain stacks on the market. We help you determine which is most suitable for your product.
4. Building your Proof-of-Concept (POC)
Our team quickly develops a Proof of Concept (POC) to demonstrate the practical viability of your blockchain project. The POC enables you to comprehend how your DApp will function. It allows you to improve your solution before beginning the actual development phase.
5: Project development
Once you have determined the viability of your proposed solution, you can proceed to the complete development phase. From UI/UX, front-end, and back-end development, to smart contract implementation, we will assist you in building a blockchain product from the ground up. With 10Clouds, you have everything covered.